IBM's Stock Crashes 25%, Worst Fall Since 1967: 3 Reasons Behind Historic Selloff

Published 15 July 2026 · finance

IBM's Stock Crashes 25%, Worst Fall Since 1967: 3 Reasons Behind Historic Selloff Published By, Last Updated: July 15, 2026, 10:12 IST IBM Stock Crash

IBM's Stock Crashes 25%, Worst Fall Since 1967: 3 Reasons Behind Historic Selloff Published By, Last Updated: July 15, 2026, 10:12 IST IBM Stock Crash Today: The selloff came after the technology giant reported weaker-than-expected preliminary second-quarter results. Rapid Read IBM Stock Crash Today: Arvind Krishna acknowledged that IBM expected some impact from supply-chain pressures but was caught off guard by the scale of the shift. IBM Stock Crash Today: IBM suffered its biggest stock market crash in nearly six decades on Tuesday, with shares plunging 25% and wiping out nearly $70 billion in market value in a single session. The selloff came after the technology giant reported weaker-than-expected preliminary second-quarter results and admitted it had failed to adapt quickly enough to changes sweeping the technology industry. “We faltered… and did not adapt and move quickly enough," CEO Arvind Krishna told investors. So what exactly went wrong for IBM? 1. Customers Shifted Spending Away From IBM’s Main Business One of the biggest blows came from IBM’s infrastructure division, which includes its iconic mainframe computers. Mainframes remain a crucial business for IBM and are widely used by banks, governments and large corporations to process millions of transactions.

However, revenue from the segment fell 7% during the quarter. As AI-driven demand created shortages of servers, storage equipment and memory chips, many companies rushed to secure those products before prices rose further. That meant less money was available for IBM’s higher-margin mainframe systems and related software. Read more: IBM Suffers Historic $70 Billion Market Blow After CEO Admits Company Fell Behind In AI Arvind Krishna acknowledged that IBM expected some impact from supply-chain pressures but was caught off guard by the scale of the shift. “In the last few weeks of June, we saw clients shift their quarterly capex spend toward servers, storage and memory purchases," he said. 2. AI Boom Is Benefiting Others More Than IBM Ironically, the same AI boom that has powered much of the tech sector’s growth appears to be hurting parts of IBM’s business. Companies worldwide are pouring billions into AI infrastructure, including advanced servers, data centres, chips and storage systems. While IBM does have AI offerings, investors appear concerned that it is not capturing as much of this spending surge as rivals focused more directly on AI infrastructure. The company’s overall revenue grew just 1% to $17.2 billion, a figure that fell short of expectations despite the industry’s massive AI spending wave.