IBM Shares Drop Sharply as Q2 Revenue Misses Expectations Despite Strong AI Sales

IBM announced preliminary results for the second quarter on Monday, reporting revenue of approximately $17 billion. This marks a 1% increase from the previous year but falls short of analysts' forecasted $18 billion. Following the announcement, IBM's stock dropped up to 17% in premarket trading, wiping out recent gains that were supported by positive analyst sentiment and a recent rally.