Key Takeaways:
International Business Machines Corp. shares fell 7% on Thursday, extending a two-week decline after sector peer Accenture Plc lowered its full-year revenue guidance and triggered a selloff across information technology services stocks.
Accenture narrowed its fiscal 2026 sales forecast to $71.76 billion to $72.46 billion, down from a prior range of $71.76 billion to $73.16 billion, the Dublin-based company said in a statement. Wall Street analysts had projected $74.01 billion. The consulting firm also reported third-quarter revenue of $18.70 billion, missing the $18.75 billion consensus estimate, while adjusted earnings per share of $3.80 topped the $3.69 average analyst forecast.
IBM's slide adds to a pullback from an early June record near $333, leaving the stock roughly 23% below that peak. The Armonk, New York-based company has beaten consensus earnings estimates for eight consecutive quarters. It is scheduled to report second-quarter results on July 22, with analysts projecting earnings per share of $3 on revenue of $17.85 billion.
The selloff in IBM shows the pressure on legacy technology companies as investors scrutinize enterprise spending trends. The broader Dow Jones Industrial Average, of which IBM is a component, also faced headwinds as the technology sector led declines. The Cboe Volatility Index rose as traders hedged against further downside in equities.
IBM's revenue grew about 9% year-over-year in its most recent quarter, a solid pace for a mature technology company, though investors are watching whether the company can sustain that momentum amid a cautious enterprise spending environment. The company has positioned its hybrid cloud platform, built around its Red Hat unit, and artificial intelligence offerings as key growth drivers.
This article is for informational purposes only and does not constitute investment advice.
