SAN FRANCISCO, July 20, 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.
The market's immediate reaction was to send the price of IBM shares down a massive 25%, erasing over $68 billion of its market capitalization in one day. Among other matters, the CEO revealed in a letter to shareholders serious problems in the company's Z performance.
The firm urges IBM investors with substantial losses to submit your losses now and invites persons who may be able to assist in the investigation to contact its attorneys.
Visit: http://www.hbsslaw.com/investor-fraud/ibmContact the Firm Now: [email protected] 844-916-0895
The firm's focus is on the propriety of IBM's statements about IBM Z, a family of enterprise mainframe computers renowned for reliability, processing scale, and security. IBM has since early April 2025 touted the IBM z17 -- its flagship, enterprise-grade mainframe, engineered for real-time artificial intelligence processing at an unprecedented scale.
On April 22, 2026 IBM reported a strong start to 2026, with its quarterly Infrastructure, Hybrid Infrastructure, and IBM Z revenues up 15%, 28% and 51%, respectively.
During the earnings call that day, management assured investors that "[t]he strong start to the year drives our confidence in delivering constant currency revenue growth of 5-plus percent in 2026[]" and "[l]ooking into the second quarter, we expect our constant currency revenue growth rate to be similar to the full year."
Management also assured investors that 2026 was positioned for "continued growth" and "we're off to a tremendous start, record start in our new z17."
Investors' expectations for IBM's second quarter were crushed within three months. On July 14, 2026, the company announced that, in contrast to assurances of "5-plus" Q2 2026 revenue growth, total revenue was up a paltry 1% and Infrastructure revenue declined 7%.
CEO Krishna said "[w]hat played out was worse than our expectations, driven by a shortfall in our Z performance and the associated software stack, primarily in Transaction Processing." He blamed the shortfall on customers' "capex reprioritization" and further said "we did not adapt and move quickly enough[,]" and "numerous large deals failed to close[.]"
