IBM shares plunge after preliminary Q2 revenue falls short of estimates despite surging AI bookings

IBM reported preliminary second-quarter revenue of about $17 billion, which was below analyst expectations despite AI-related bookings exceeding $12 billion. The company's shares dropped significantly due to broad revenue shortfalls across software, consulting, and infrastructure segments, along with narrower profit margins. While AI remains a growth focus, challenges in traditional business areas raise concerns about IBM's near-term financial performance.