Arvind Krishna: "numerous large deals failed to close"

Shareholder-rights firm Hagens Berman said on August 12, 2026, that it is probing whether IBM violated U.S. securities laws, after CEO Arvind Krishna’s July 14 second-quarter preview sent the stock down 25% and erased about $68 billion in market value. The inquiry centers on earlier IBM statements about its Z mainframe business. On April 22, management had expressed confidence in continued 2026 growth; final results showed total revenue up only 1% and infrastructure revenue down 7%. Krishna explained the disappointment by pointing to weak Z and related software demand, as well as customers shifting capital-expenditure priorities and IBM’s slow adjustment. Hagens Berman says it is examining whether executives knew sooner that anticipated revenue from pending agreements would not arrive during the quarter.