IBM (IBM) Cuts Full-Year Growth Outlook After Mainframe Sales Drop 42%
What happened
IBM revised its full-year revenue growth forecast downward after data-center mainframe sales declined 42% in the most recent quarter. The mainframe segment decline was the primary driver of the guidance reduction. IBM had previously projected stronger infrastructure revenue contributions from its hardware division. The company did not offset the hardware shortfall sufficiently with growth in other segments to maintain its prior outlook.
The QL Read
IBM's composite QL signal sits at 31/100, in the bearish band, with shares down 1.11% on the session at $205.77. Bearish-tilted names outnumber bullish-tilted names 183 to 78 across the broader tape, and today's guidance cut lands into an already-softening signal backdrop.
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