IBM shares plunge 23% on profit warning

IBM shares plunged over 25% following a profit warning and disappointing preliminary second-quarter results. The company reported revenue of $17.2bn, a slight 1% year-over-year increase, missing market expectations. IBM attributed the decline to sluggish customer spending on AI infrastructure and shifts in corporate expenditure. This selloff triggered a broader downturn in the software sector, including Microsoft, with IBM experiencing a single-day value loss more severe than the 1987 Black Monday crash as profits faltered.