IBM Stock Plummets as AI Infrastructure Costs Cannibalize Mainframe Budgets

By Julie Bort · TechCrunch · 2026-07-22

IBM Stock Plummets as AI Infrastructure Costs Cannibalize Mainframe Budgets

TechCrunch reports that IBM shares experienced their sharpest single-day decline ever after the company disclosed a 42% revenue drop in its mainframe segment. CEO Arvind Krishna informed investors that clients shifted capital to cover soaring data center costs rather than refresh

TechCrunch reports that IBM shares experienced their sharpest single-day decline ever after the company disclosed a 42% revenue drop in its mainframe segment. CEO Arvind Krishna informed investors that clients shifted capital to cover soaring data center costs rather than refresh