IBM Stock Price Falls 22% Amid Revenue Growth Concerns

IBM's stock has seen significant decline this year, falling by approximately 22% year-to-date and trading near $230. This is about 30% below its record close of $329.23 set on June 2.

The company achieved an 8% revenue growth in 2025 to $67.5 billion, but the second quarter of 2026 saw only a 1% revenue increase, with software revenue growth slowing to 5%. This pressure has led management to lower the full-year revenue outlook to 4%-5%.

Despite these challenges, IBM expects free cash flow to grow by about $1 billion in 2026, reaching $15.7 billion. This robust cash management supports its long-standing dividend growth record.