IBM Shares Plunge 25% After Profit Warning Highlights Hardware Shift Impact
How 4 Israeli newsrooms covered this story — translated into English and compared side by side.
By שירי חביב ולדהורן, חזי שטרנליכט
First reported by Calcalist · Jul 14, 2026
What happened
IBM's stock dropped 25.2% after CEO Arvind Krishna warned of weaker-than-expected revenue due to customers shifting investments to AI-related hardware. The company reported modest revenue growth but a 7% decline in infrastructure sales, reflecting changing market dynamics. Analysts highlighted IBM's struggle to keep pace with tech sector growth and the impact on its legacy business.
- 01IBM shares fell 25.2%, losing $69 billion in market value after a profit warning.
- 02CEO Arvind Krishna cited a 7% drop in infrastructure revenue due to customers prioritizing AI hardware.
- 03IBM's total revenue rose 1% to $17.2 billion, with software up 5% and consulting flat.
- 04Analysts say IBM lags in cloud and AI transitions, impacting growth and investor confidence.
- 05Rising memory chip prices and cybersecurity concerns shift IT budgets away from IBM products.
- 06IBM employs over 300,000 globally, including about 1,500 in Israel, amid ongoing market challenges.
Summary translated & synthesized from the sources below by baba. Read each original for the full report.
Full coverage · 4 outlets
The same event, reported separately by each newsroom. Open a few to compare what each emphasizes — and what they leave out.
