IBM
The surprise came from the cyber checkout line
IBM CEO Arvind Krishna said a few large capex deals slipped late in the second quarter as customers stopped to rethink cybersecurity budgets after Anthropic’s Mythos launch. Translation: some buyers looked at the shiny new AI cyber tool and decided to do the corporate version of “let me sleep on it.”
Not a company-wide meltdown, but still a bruise
Krishna tried to keep the damage contained, saying the delays were tied mostly to IBM’s mainframe business and the software around it. That’s important, because the market heard “delay” and immediately translated it into “uh oh, is the AI-software story wobbling?” IBM says no, the broader software business is still fine.
The numbers didn’t help the mood
The company also said selected preliminary Q2 results missed Wall Street expectations, with weaker sales in Z mainframe systems and related transaction-processing software. IBM expects Q2 revenue of $17.2 billion versus the Street’s $17.86 billion, while diluted GAAP EPS is projected at $2.27 and operating EPS at $2.93.
Why investors care
This is the kind of update that can punch way above its weight. IBM isn’t just selling old-school hardware; it’s trying to convince investors the mix is shifting toward higher-value software and AI-adjacent growth. When the mainframe side stumbles and customers pause big-ticket spending, it raises the annoying question every investor hates: is this a temporary speed bump, or the first sign the road got bumpy for real?
Big picture: IBM says the pause is narrow, not systemic. But when your stock is built on confidence, even a narrow pause can feel like a full-stop.