International Business Machines Corporation (IBM) $68 Billion Wipeout Amid Z Shortfall Triggers Investigation - HBSS
PR Newswire•01/10/2026•14:26 ET
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Key Highlights
- ➤IBM (IBM) shares fell 25%, erasing over $68 billion in market capitalization.
- ➤IBM (IBM) Q2 2026 total revenue rose 1%, while Infrastructure revenue declined 7%.
- ➤IBM (IBM) CEO cited a shortfall in Z performance and associated software stack.
- ➤Hagens Berman is investigating potential U.S. securities law violations involving IBM (IBM).
- ➤IBM (IBM) previously forecast 5-plus percent 2026 constant currency revenue growth.
Expert Statements
Arvind Krishna, CEO of IBM
“What played out was worse than our expectations, driven by a shortfall in our Z performance and the associated software stack, primarily in Transaction Processing.”
Arvind Krishna, CEO of IBM
“we did not adapt and move quickly enough”
Arvind Krishna, CEO of IBM
“numerous large deals failed to close”
Reed Kathrein, Partner at Hagens Berman
“Based in part on the abruptness of the bad news, we are looking into whether and when the Company may have had information raising the probability that large deals were unlikely to timely close during IBM's second quarter.”
International Business Machines Corporation (IBM) $68 Billion Wipeout Amid Z Shortfall Triggers Investigation - HBSS PR Newswire
SAN FRANCISCO, Oct. 1, 2026 /PRNewswire/ -- National shareholder rights firm Hagens Berman is investigating potential violations of U.S. securities laws by blue chip company International Business Machines Corporation (NYSE: IBM) after its CEO Arvind Krishna previewed disastrous Q2 2026 financial results on July 14, 2026.
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