IBM stock slides 7% as growth concerns revive AI threat fears
IBM's stock fell 7% after the company reported a slowdown in revenue growth, particularly in its software division, despite beating revenue expectations with $15.92 billion in Q1. The company's infrastructure business saw a 15.2% revenue rise, offsetting some of the weakness in software growth.
IBM's shares dropped 7% in pre-market trading after the company reported a slowdown in revenue growth. The technology giant posted Q1 revenue of $15.92 billion, up 9% from a year earlier, beating analysts' average estimate of $15.62 billion. IBM's software segment showed signs of moderation, with revenue rising 11.3%. The company's infrastructure business delivered a stronger performance, with revenue rising 15.2% to $3.33 billion. IBM's leadership maintains that artificial intelligence remains a growth driver rather than a threat. Concerns around AI competition continue to pressure valuation, with some analysts remaining cautious about the company's software revenue growth.
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