Performance falls short of expectations, IBM suffers biggest one-day drop in nearly 40 years
On the evening of July 14, the three major U.S. stock indexes opened with mixed results. As of 21:45 Beijing time, the Dow Jones Index rose 0.11%, the S&P 500 Index rose 0.31%, and the Nasdaq Composite Index rose 0.59%. Affected by IBM's preliminary second-quarter revenue that fell short of expectations, software stocks fell. IBM once fell by more than 25%, the largest single-day decline since 1987. IBM's financial report shows that preliminary revenue for the second quarter was US$17.2 billion, an increase of 1%, and an estimated US$17.86 billion, of which software revenue increased by 5% and infrastructure revenue decreased by 7%.
On the evening of July 14, the three major U.S. stock indexes opened with mixed results. As of 21:45 Beijing time, the Dow Jones Index rose 0.11%, the S&P 500 Index rose 0.31%, and the Nasdaq Composite Index rose 0.59%. Affected by IBM's preliminary second-quarter revenue that fell short of expectations, software stocks fell. IBM once fell by more than 25%, the largest single-day decline since 1987. IBM's financial report shows that preliminary revenue for the second quarter was US$17.2 billion, an increase of 1%, and an estimated US$17.86 billion, of which software revenue increased by 5% and infrastructure revenue decreased by 7%. Diluted earnings per share were $2.27, down 2% year-on-year; operating (non-GAAP) earnings were $2.93, up 5% year-on-year. IBM said it expects infrastructure revenue to drop to single digits starting in the current quarter. IBM CEO Arvind Krishna said that in the last few weeks of June, there was a clear shift in customers' quarterly capital expenditure strategies. In order to cope with future price increases and supply constraints, some companies began to prioritize the purchase of infrastructure hardware such as servers, storage and memory. This change directly affects IBM's software and infrastructure businesses. The company's preliminary data shows that in the second quarter, software revenue increased by 5% year-on-year, and consulting business was basically flat (1% growth at constant exchange rates), but infrastructure revenue fell by 7% year-on-year, which was significantly weaker than the low-single-digit decline previously expected by the market for the full year. (