IBM stock drops 23% after earnings miss amid higher client hardware spending

IBM reported second‑quarter earnings that fell short of analysts' expectations. The earnings miss triggered a 23% decline in the company's share price. Revenue growth was driven by increased client spending on hardware. Clients also purchased more memory chips during the quarter. Despite higher hardware sales, overall earnings were lower than forecast. The company warned that the shortfall could affect its future outlook. Analysts highlighted the earnings miss as a concern for investors. The stock reaction underscores challenges in IBM's transition strategy.