IBM Stock Is Having the Worst Day in Its History

IBM shares cratered as much as 25% after the company warned Q2 earnings would miss expectations, marking the worst single-day decline in the tech giant's 115-year history. The drop eclipsed IBM's previous record plunge during the 1987 Black Monday crash.

The revenue shortfall stems from customers diverting spending away from IBM products toward storage and memory infrastructure in anticipation of price increases, according to the company. CEO Arvind Krishna admitted IBM failed to adapt quickly enough to the shift and disclosed that multiple large deals slipped past their expected close dates.

The 25% intraday loss represents a historic repudiation by the market. IBM has weathered recessions, technology shifts, and competitive threats over more than a century, but this single-session evaporation of shareholder value sets a new benchmark for volatility in the stock. The magnitude suggests the earnings warning caught institutional investors entirely off guard.