IBM shares have suffered a severe sell-off, dropping 23% in trading following the release of a preliminary profit warning for the second quarter.
The sharp decline reflects investor disappointment as the technology giant disclosed that its financial performance fell significantly below market consensus.
The company reported adjusted earnings per share of $2.93, a figure that missed analyst expectations and triggered immediate selling pressure.
This result marks a stark reversal from recent periods where IBM had been viewed as a stable beneficiary of the artificial intelligence infrastructure build-out.
The miss has weighed on broader Wall Street indices, with the tech-heavy S&P 500 feeling the drag from the large-cap decline.
The warning comes after IBM had previously highlighted its sub-1nm chip technology and AI computing density initiatives as key growth drivers.