IBM's earnings tanked! None of the AI money flowed into IBM Revenue: About $17.16 billion, up 1% year-over-year, but below market expectations of around $17.86 billion Software revenue: Up about 5% year-over-year, but significantly below the original expectation of around 10% Consulting business: Basically flat Infrastructure business: Down 7% year-over-year IBM's most important and highest-margin software business only grew 5%, far below expectations. Meanwhile, the infrastructure business dropped 7%, and orders for the next-gen z17 mainframe and related transaction processing software didn’t go as planned. IBM management explained: - Enterprise clients are prioritizing budgets for AI servers, storage, and memory - Clients are worried about further hardware price hikes, so they’re rushing to buy scarce infrastructure in advance - Budgets for traditional software, mainframes, and consulting projects are being squeezed CEO Arvind Krishna even admitted that the company failed to adapt to clients’ budget reshuffling in time, calling it a "misstep in execution this quarter." Buy U.S. stocks on msx @MSX_CN