IBM reported weaker-than-expected second-quarter revenue as enterprise customers delayed technology spending amid economic uncertainty.
The company said cautious client budgets slowed new project approvals, affecting sales despite continued demand for artificial intelligence and hybrid cloud solutions. IBM highlighted growing interest in its watsonx AI platform but said stronger AI demand could not fully offset weakness in other businesses.
Following the results, the company’s shares declined as investors reacted to the revenue miss. IBM remains optimistic about its long-term growth strategy, betting that AI, software and consulting services will drive future performance once enterprise spending recovers.