IBM Share Price Crashes 24% After Missing Revenue Estimates; Infosys, Wipro ADR Falls 8%, Hit by Tech Sell-Off

Shares of International Business Machines (IBM) witnessed a sharp sell-off in US trading after the technology giant issued a weaker-than-expected financial outlook, raising fresh concerns about global enterprise technology spending. The disappointing update triggered a broader decline across software stocks and weighed on the American Depositary Receipts (ADRs) of Indian IT majors Infosys and Wipro, both of which earn a significant portion of their revenue from overseas clients.

IBM Share Price Today on NYSE

IBM shares were among the biggest losers in US trading. At around 10:05 AM GMT, the stock was trading at $220.42 on the New York Stock Exchange (NYSE), down 24.06% or $69.82 for the day. The stock opened at $226.36, touched an intraday high of $229.92, and fell to a low of $215.67.

IBM Shares Sink After Revenue, Profit Outlook Misses Estimates

IBM projected second-quarter revenue of around $17.2 billion, missing analysts' expectations of $17.86 billion, according to LSEG estimates. The company also guided for adjusted earnings per share (EPS) of $2.93, below the Street estimate of $3.02.

The weaker guidance triggered a steep sell-off, with IBM shares falling by more than 20% in premarket trading as investors reassessed the company's near-term growth prospects.

The guidance disappointed markets because IBM has been viewed as one of the established enterprise technology companies expected to benefit from rising corporate investments in artificial intelligence. Instead, the latest update suggested that spending patterns are changing faster than anticipated.

Infosys, Wipro ADRs Slide Along With Global Tech Stocks

The sell-off was not limited to IBM. Investors also reduced exposure to Indian IT companies listed in the US because firms such as Infosys and Wipro generate a significant share of their revenue from North America, where enterprise technology spending drives demand for consulting, cloud migration, software development and digital transformation projects.

Following IBM's guidance, Infosys ADR fell 7.91% to $11.50, while Wipro ADR declined 4.21% to $1.90, reflecting concerns that cautious corporate technology spending could temporarily affect IT service providers as well.

Why Are IT Stocks Falling?

The weakness spread across the broader US technology sector. Shares of Microsoft, Salesforce, ServiceNow and Intuit also traded lower as investors worried that companies may prioritise spending on AI infrastructure rather than software subscriptions and enterprise applications.

As artificial intelligence adoption accelerates, many companies are allocating larger portions of their budgets towards AI infrastructure, including servers, storage systems, memory, networking equipment and data centres needed to run advanced AI workloads.

That leaves comparatively less room for immediate spending on enterprise software, cloud migrations and certain consulting projects.

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