IBM CEO Arvind Krishna warned that the company struggled over the past three months as customers rapidly changed their technology budgets. This led to a significant decline in sales of IBM’s new z17 mainframe computer.

Financial Performance

The company’s preliminary sales grew just 1% in the past quarter, and its unadjusted earnings per share fell 2% – both below the company’s forecasts. The price of microchips, particularly memory and storage processors, has surged in recent months, affecting IBM’s customers’ purchasing behavior.

IBM also faced challenges due to Anthropic’s Mythos debut, which paused several large deals that the company had anticipated closing by the end of the quarter. Krishna stated that the company is quickly innovating out of the turmoil, noting the launch of its Lightwell open-source security software in response to Mythos.

Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.