# IBM Stock Still Struggling to Shake Off July's Earnings Shock Despite Strong Q3 > IBM shares fell about 5% even after the company posted strong third-quarter revenue and earnings, as investors remain wary following a preliminary warning in July that sent the stock down roughly 25% in a single session. - Source: Principle Post - Canonical URL: https://principlepost.com/article/ibm-stock-july-earnings-miss-q3-results - Author: Principle Post Staff - Section: Markets - Published: 2026-10-22T21:08:00.000Z - Updated: 2026-10-22T21:08:00.000Z - Tags: IBM, earnings, Arvind Krishna, stock market, technology --- IBM shares fell about 5% in Thursday trading even after the company reported strong third-quarter results, a sign that investors are still wary following a shocking earnings warning the company issued in July. That July warning sent IBM stock down roughly 25% in a single session, a decline that surpassed the company's previous worst trading day, during the 1987 Black Monday crash. ## What went wrong in July The July selloff followed a preliminary disclosure that IBM's adjusted earnings and revenue would come in well below analyst expectations. CEO Arvind Krishna said clients had sharply reprioritized their capital spending in the final weeks of June, shifting funds away from IBM's traditional software and infrastructure business and toward hardware purchases like servers, storage and memory chips, as a severe memory chip shortage drove prices higher and pushed customers to prioritize hardware over other IT spending. IBM's October 21 third-quarter report largely backed up the company's earlier explanation, with strong revenue and earnings that suggested the July shortfall was more of a timing issue than a sign of deeper trouble. But the stock's continued weakness this week shows investors remain cautious, unwilling to fully look past a quarter that delivered IBM's worst single trading day in decades, even with the subsequent numbers coming in solidly ahead of plan. --- Originally published by Principle Post. Free to cite with attribution and a link to https://principlepost.com/article/ibm-stock-july-earnings-miss-q3-results.