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IBM warned early on weak second-quarter results as Pomerantz opens probe

IBM warned early on weak second-quarter results as Pomerantz opens probe

Hagens Berman has joined Pomerantz and Levi & Korsinsky in examining whether IBM’s disclosures on IBM Z, transaction-processing software and 2026 growth expectations complied with U.S. securities laws after the stock’s sharp July 14 drop.

Fact Check
Every element of the claim is corroborated by primary sources. The Hagens Berman press release explicitly confirms it is investigating IBM alongside the pattern of shareholder-rights investigations, and its investigation focus matches the claim precisely: IBM Z (mainframe), the software stack/Transaction Processing, and 2026 growth expectations (the prior '5-plus percent' constant-currency guidance). Pomerantz and Levi & Korsinsky each published their own investigation notices, confirming all three firms are examining whether IBM's disclosures complied with U.S. securities laws. The July 14, 2026 profit warning and sharp (~25%) stock drop are independently confirmed by WSJ and Morningstar/BusinessWire. The only minor nuance is that Levi & Korsinsky's release emphasizes AI/supply-chain disclosures rather than Z specifically, but the overall multi-firm probe framing is accurate.
Summary

IBM disclosed weak preliminary second-quarter 2026 results ahead of its scheduled earnings release after board members debated whether to warn investors early or wait for the full report. The company said it “faltered” and “did not adapt and move quickly enough,” citing a shortfall in its Z performance and associated software stack, primarily in Transaction Processing, as well as numerous large deals that did not close on expected timelines. IBM also lowered its near-term revenue and earnings outlook. Its shares fell $73.16, or 25.21%, to $217.07 on July 14, 2026. On July 16, 2026, Pomerantz LLP said it was investigating potential securities-fraud or other unlawful business-practice claims, while Levi & Korsinsky said it was examining IBM’s disclosures about AI demand, generative AI activity, supply constraints and 2026 growth expectations for possible securities-law violations. On July 17, 2026, Hagens Berman said it was investigating potential violations of U.S. securities laws, focusing on IBM’s statements about IBM Z after the company had reported strong first-quarter growth and reaffirmed confidence in delivering more than 5% constant-currency revenue growth for 2026 and a similar growth rate in the second quarter, only to later say second-quarter revenue rose 1% and Infrastructure revenue fell 7%.

Terms & Concepts
  • preannouncement: Early warning issued before a company’s formal earnings release.
  • Transaction Processing: IBM said this was the main area within its associated software stack contributing to the Z-related shortfall.
  • capex reprioritization: A shift in planned customer capital spending that IBM said contributed to weaker second-quarter performance.