IBM shares drop 7% as CEO warns of cautious AI spending despite strong earnings.

IBM reported better-than-expected Q3 2026 earnings with revenue of $17.1 billion and adjusted EPS of $2.95, beating forecasts. However, CEO Arvind Krishna cautioned that enterprise clients are becoming more careful about AI spending, seeking real returns and avoiding uncontrolled expenses. This warning overshadowed the earnings beat, causing IBM stock to fall 7%, impacting the tech sector. IBM maintained its full-year revenue growth forecast at 4-5%, disappointing investors, while software growth remains a key focus ahead of Q4 results. Accenture and Infosys saw milder stock declines, indicating the impact is mostly on IBM.

While IBM's stock dropped 7% following CEO caution on AI spending, Accenture and Infosys showed smaller moves on Pluang as of Oct 22, 2026 20:21 WIB. Accenture edged up 0.50% to USD 241.46, still below its 52-week high of USD 288.54, whereas Infosys declined 2.12% to USD 12.48, closer to its 52-week low of USD 10.49. This contrast highlights varied investor reactions within the tech sector amid AI spending concerns.