International Business Machines Corporation (NYSE: IBM)

This investigation is for anyone who acquired securities in International Business Machines Corporation (NYSE: IBM) prior to July 14, 2026.

The Law Offices of Howard G. Smith believes that the Company and certain of its executives violated federal law. Specifically, the Law Offices of Howard G. Smith believes that the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by failing to timely warn investors that fear of an impending supply shortage would significantly negatively affect the Company’s revenue.

On July 14, 2026, IBM reported preliminary second quarter 2026 financial results, including that it anticipates infrastructure revenue to decline 7% and software revenue to increase only 5%. CEO Arvind Krishna in a letter to IBM Investors, stated “this quarter we faltered. We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall.” The Company also admitted there was a “software and infrastructure performance shortfall,” in part due to “performance and the associated software stack” of Z, a new family of mainframes built for AI. The Company also disclosed it “saw clients shift their quarterly capex spend toward servers, storage, and memory purchases” and “[w]hile we anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in International Business Machines Corporation (NYSE: IBM) prior to July 14, 2026 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.