IBM Stocks Plummet Amid Mainframe Revenue Drop, Management Stays Bullish

IBM's stock price has been on a downward trend since January, erasing 25.07% of its value and reaching a 52-week low of €175.14 in late July.

The company's infrastructure segment, which was long considered the quiet engine of IBM's financial stability, contracted by 7% in the second quarter with revenue from Z-series mainframes plummeting 42%.

IBM's management has attributed this decline to customers prioritizing servers, storage, and cybersecurity investments ahead of anticipated technology-sector price increases, a shift that may be temporary or permanent.

The company is doubling down on its mainframe business, with CFO Jim Kavanaugh insisting there's no evidence customers are abandoning the platform and projecting a 'record year compared to previous programs'.