IBM Stock: 3 Reasons Q2 Earnings Weren't as Bad as Investors Feared

International Business Machines (IBM) stock dropped sharply after the company issued a preliminary warning ahead of last week’s Q2 release, but the earnings call pointed to a more balanced picture, according to the article. The stock is down 23% year-to-date, even though the report frames the results as less damaging than investors feared. It argues that IBM’s software business did not “break,” despite 5% year-over-year software revenue growth, because deal timing pushed revenue into early Q3. The recurring software segment rose: annual recurring revenue climbed 8% to $24.6 billion, and total revenue rose 1% to $17.2 billion, with adjusted EPS up 5% to $2.93.