'Earnings Surprise' Leads to -7% Plunge… Big Blue Loses 20 Trillion Won in a Day

IBM (International Business Machines Corp.) closed at $237.10 on the New York Stock Exchange on April 22, plunging 7.27% and shrinking its market capitalization to roughly $222.4 billion (about KRW 300 trillion). In a single day, the company lost around $15 billion in market value (approximately KRW 20 trillion), as selling on the news dominated despite first-quarter results, released after the close, beating market expectations. Some 6.8 million shares traded hands, underscoring heightened volatility.

In the first quarter, IBM reported revenue of $15.9 billion, up 9% year over year, and adjusted earnings per share of $1.91, versus the $1.81 consensus. Software revenue rose 11% and infrastructure revenue grew 15%, driven by strong demand for AI and hybrid cloud. The company reaffirmed its outlook for at least 5% revenue growth this year and about $1 billion in incremental free cash flow. It also raised its quarterly dividend to $1.69 per share and, in March, completed its roughly $11 billion acquisition of data infrastructure provider Confluent, accelerating its AI and data-platform strategy.

Founded in 1911, IBM is a leading U.S. IT firm specializing in mainframes, hybrid cloud, artificial intelligence, and consulting. Under CEO Arvind Krishna, the company is focusing on high-value businesses such as WatsonX and quantum computing. However, concerns that Anthropic’s Code AI could encroach on demand for modernizing COBOL-based legacy systems contributed to a double-digit stock decline in February, highlighting the tension between AI-driven growth expectations and the risk of cannibalizing its traditional businesses.