IBM’s stock plunged 25% on July 15, 2026 — its worst single‑day crash since 1968 — wiping out nearly $70 billion in market value and rattling Indian IT stocks like Infosys, TCS, Wipro, and HCLTech, which all fell as investors worried about global tech spending trends.
What Happened to IBM
- Crash magnitude: IBM shares fell 25.21% to $217.07, the steepest drop since January 1968.
- Trigger: Preliminary Q2 2026 results missed Wall Street expectations.
- Revenue: $17.2B vs. $17.9B expected.
- EPS: $2.93 vs. $3.01 expected.
- Business trends: Software revenue up 5% YoY; Consulting flat; Infrastructure down 7%.
- CEO Arvind Krishna’s admission: IBM “did not adapt and move quickly enough” as enterprise customers shifted budgets toward AI infrastructure.
Impact on Indian IT Stocks
- Nifty IT Index: Fell ~2% intraday, underperforming the broader market.
- Major losers: TCS down ~2%; Infosys, Wipro, Persistent Systems, LTIMindtree fell over 1% each.
- ADR impact: Infosys ADR fell 4%, Wipro ADR 3% in U.S. trading.
- Investor sentiment: Concerns over global enterprise software demand and delays in large deals.
Strategic Implications
- Global tech spending shift: Enterprises prioritizing AI hardware over traditional software.
- Indian IT exposure: Heavy reliance on U.S. and European enterprise clients.
- Market caution: Investors brace for weaker outlooks from Indian IT majors.
Snapshot Table
| Company | Stock Reaction (July 15, 2026) | Key Concern |
|---|---|---|
| IBM | -25.21% | Missed Q2 estimates, AI spending shift |
| TCS | -2% | Demand uncertainty in enterprise software |
| Infosys | -1.46% (ADR -4%) | Weak global tech budgets |
| Wipro | -0.76% (ADR -3%) | Delays in large deals |
| HCLTech | -0.12% | Exposure to infrastructure slowdown |
| Persistent Systems | -0.82% | Caution on consulting demand |
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