Shares of technology and consulting giant International Business Machines Corp. (NYSE: IBM) fell by 9.2% during the afternoon session after the company presented its first-quarter results. Although revenue and profit figures formally exceeded Wall Street forecasts, investors remained disappointed by the too-modest margin over the expected numbers.

IBM shares traded at $228.27 at the moment, which is 27.5% below their 52-week high of $314.98 reached in November 2025. Since the beginning of the year, the company’s capitalization has decreased by 21.7%, while revenue for the reporting period grew by 9.5% year-on-year, totaling $15.92 billion.

The current market valuation reflects investor skepticism regarding the key Software segment and the company’s artificial intelligence strategy. The market was counting on clearer signs of accelerated growth driven by AI solutions; however, the current results failed to dispel concerns about the giant’s competitiveness in the rapidly changing sector.

IBM faced a sharp market reaction, marking one of the company’s largest single-day share drops in the past year. The negative sentiment intensified amid general fears of a slowdown in the IT consulting industry, causing stakeholders to doubt the sustainability of current business models in the face of the long-term impact of new technologies.