International Business Machines Corp. (IBM) reported preliminary second-quarter revenue of approximately $17.2 billion. This figure fell short of the $17.86 billion analyst consensus. Operating earnings per share reached $2.93, missing the $3.02 estimate. Company shares dropped as much as 17% in pre-market trading.
CEO Arvind Krishna described the results as disappointing and stated the company faltered in adapting to market conditions. He attributed the shortfall to clients shifting capital expenditures toward servers and storage due to supply constraints. Delays in closing numerous large deals further impacted performance.
Revenue in the Infrastructure segment declined 7%. A shortfall in mainframe sales primarily drove the weakness in that division.