IBM's Stock Crashes 25 Percent, CEO Insists Software Shortfall Was Deferral, Not Destruction

IBM's Stock Crashes 25 Percent, CEO Insists Software Shortfall Was Deferral, Not Destruction

IBM's stock crashed 25 percent on July 14, its worst single-day fall in 115 years, after mainframe revenue dropped 42 percent. CEO Arvind Krishna has insisted that the software shortfall was a deferral, not destruction. The company has cut its 2026 growth forecast, but is betting $5 billion on Lightwell and over $10 billion on quantum computing. The decline in IBM's stock has been attributed to a decline in mainframe revenue, which dropped 42 percent. The company has also been investing heavily in quantum computing and Lightwell, which are expected to drive growth in the future.