IBM Stock Plunges After Q2 Warning

IBM stock plunged after the company disclosed a preliminary revenue warning, triggering a historic selloff that left the shares under heavy pressure and focused traders and investors on near-term enterprise-technology demand and recovery prospects.

Preliminary Q2 2026 Revenue Warning and Market Reaction

On July 14, 2026, IBM disclosed a preliminary Q2 2026 revenue warning that fell short of Wall Street expectations. Estimates had centered on roughly $17.8 billion to $17.9 billion in revenue, providing context for the shortfall. The announcement sparked a steep selloff that erased about 25% of IBM’s market value, wiping out roughly $67 billion.

Shares closed that day at $216.58, down $73.65. By midday July 15, extended trading showed the stock around $224.33, reflecting ongoing volatility rather than a full rebound. Market commentary linked the decline to disappointment with enterprise technology spending and the warning’s weaker-than-expected results.

Brokerage and aggregator snapshots summarized a consensus Moderate Buy rating with an average target price near $306, while another compilation listed a consensus target just under $295. This divergence among third-party price targets complicates the near-term recovery outlook for traders and investors.

One report described the drop as the stock’s worst single-day decline since at least 1968. Follow-up coverage noted the shares remained under pressure after the rout, with additional analyst commentary continuing to circulate. The selloff concentrated attention on whether enterprise-technology demand stabilizes and if the gap in price targets narrows, shaping the near-term recovery case.