IBM stock price has come under pressure this week amid concerns about software sales growth and ahead of the company’s second-quarter 2026 earnings report, scheduled for July 22.
IBM shares tumbled 12.2% last week to a five-month low, according to market reports from July 13. The stock closed at $290.23 on that date, down significantly from earlier peaks this year.
Analysts are expecting IBM to report Q2 revenue of about $17.8 billion and earnings per share near $2.98 to $3.05, according to consensus estimates. The company is forecasted to deliver 5% revenue growth and 8% adjusted earnings growth for the June-ended quarter, according to analyst forecasts from early July.
IBM’s stock weakness reflects a broader pattern that has dogged the company throughout 2026. In April, IBM beat first-quarter earnings estimates with adjusted earnings of $1.91 per share versus the expected $1.81, and revenue of $15.92 billion versus $15.62 billion expected. Yet the stock fell 6% to 8% in after-hours trading, with investors citing concerns over the company’s unchanged full-year guidance and weakness in software sales growth.
Software sales have emerged as a key concern for investors. IBM’s software division, which represents a significant portion of the company’s revenue, has faced headwinds from broader industry challenges and AI-driven disruption concerns. When Accenture issued a warning in June, IBM stock slid more than 22% from its early-June peak, with a single day erasing 5% of value, according to market analysis from mid-June.
The upcoming Q2 earnings announcement will be closely watched to see whether IBM can address investor concerns about software revenue growth and provide more optimistic guidance for the remainder of 2026. Analysts have set a consensus price target of $299.56 for the stock, suggesting modest upside from current levels, though sentiment remains cautious heading into the earnings call.
Sources
- Stocktwits — IBM shares tumbled 12.2% last week to a five-month low, marking steepest weekly decline in nearly six years
- TIKR.com — IBM’s Q2 2026 earnings scheduled for July 22 with analyst expectations for $17.8B revenue and $2.98 EPS
- ChartMill — Consensus EPS estimate for Q2 2026 at $3.05
- Investor’s Business Daily — Analysts forecasting 5% revenue growth and 8% adjusted earnings growth for Q2 2026
- Barron’s — IBM Q1 2026 beat estimates but stock fell on unchanged guidance; adjusted earnings $1.91 vs $1.81 expected, revenue $15.92B vs $15.62B expected
- TIKR.com — IBM slid more than 22% from early-June peak with software sales concerns
- public.com — Analyst consensus rating of Buy with 2026 price target of $299.56
