After shocking quarter, IBM insists that AI isn’t killing the mainframe
IBM reported a disappointing earnings quarter, generating $17.2 billion in revenue but missing Wall Street expectations, leading to a 25% drop in stock value. CEO Arvind Krishna attributed the decline to a 42% drop in mainframe sales, as customers opted for alternative hardware amid rising costs. Despite the setback, Krishna and CFO Jim Kavanaugh insisted that the downturn is temporary and forecasted recovery in the future.