IBM shares fall 6.5% as analysts flag pulled-forward software deals
BofA Global Research estimated about $250 million of IBM's third-quarter software growth came from contracts pushed over from the second quarter.
IBM shares fell 6.5% in pre-market trading on 22 October 2026, Reuters reported, after analysts estimated that much of the company's third-quarter software rebound came from contracts shifted out of the previous quarter.
BofA Global Research analysts put the value of that pulled-forward business at about $250 million of IBM's third-quarter software growth.
The company nevertheless raised its full-year software revenue growth forecast to 7-8% from 6-8%. Its overall revenue growth forecast was left unchanged.
Revenue in IBM's transaction processing segment, which sells mainframe-related software, rose 9% in the third quarter.
CEO Arvind Krishna said the growth would not continue and would return to a normal level, particularly next year.
Shares already down this year
By the close on 21 October 2026, IBM shares had fallen about 15% this year.
Quick answers
Why did IBM shares fall on 22 October 2026?
Shares dropped 6.5% in pre-market trading after BofA Global Research analysts estimated about $250 million of IBM's third-quarter software growth came from contracts pushed over from the second quarter.
What did IBM change in its forecasts?
IBM raised its full-year software revenue growth forecast to 7-8% from 6-8% and kept its overall revenue growth forecast unchanged.
What did IBM's CEO say about the growth?
Arvind Krishna said the growth would not continue and would return to a normal level, especially next year.