IBM shares fell sharply in European trading, dropping approximately 7% as investors digested the company's preliminary second-quarter financial results.
The decline follows a severe premarket sell-off on Wall Street, where the stock had already tumbled more than 17% after the company disclosed that its revenue would fall significantly below market expectations.
The company reported adjusted earnings per share of $2.93, a figure that failed to offset concerns over the top-line miss. The weak performance has weighed on broader Wall Street indices, highlighting the continued pressure on legacy technology firms to demonstrate growth in a competitive market.
This development marks a significant setback for IBM, which had previously issued a preliminary warning about its second-quarter outlook.
The gap between actual results and analyst estimates has triggered a repricing of the stock, with investors reassessing the company's near-term trajectory.
The sell-off underscores the sensitivity of the market to earnings misses in the technology sector.
As IBM navigates this period of underperformance, investors will be closely monitoring the company's strategic response and any guidance adjustments for the remainder of the year.