IBM shares fell 6.5% on February 11, 2026. The stock closed at $272.81, marking its largest single-day decline in recent history.
A deepening SEC investigation into Kyndryl triggered the sell-off. IBM spun off Kyndryl, its former managed infrastructure unit, in 2021.
The market reaction overshadowed strong fourth-quarter results. Earnings per share reached $4.52, beating analyst expectations of $4.33. Revenue grew more than 12% to $19.69 billion. The company’s generative AI book of business surpassed $12.5 billion.
Shares currently trade at $273.97 in pre-market sessions. The stock remains well below its 52-week high of $324.90. Investors are evaluating whether the Kyndryl correlation represents a short-term overreaction or a long-term headwind.