'We faltered, did not move quickly:' How IBM CEO Arvind Krishna's statement led to $70 billion wipeout

IBM shares crashed around 25 percent, wiping out about 70 billion dollars in market value, after it warned of weak preliminary quarterly results and customers shifting spending toward AI infrastructure. The company expects Q2 revenue of 17.2 billion dollars, up only 1 percent year-on-year versus analyst estimates of 17.86 billion dollars, with adjusted EPS guidance of 2.93 dollars below the 3.02 dollar Street estimate. CEO Arvind Krishna admitted the company faltered and did not adapt quickly enough, pushing down shares of Microsoft, ServiceNow, Salesforce and Intuit and raising broader concerns about AI-driven spending away from traditional software toward chips, servers and storage.