Arvind Krishna says "we did not adapt and move quickly enough" on IBM's disappointing Q2 results

IBM is facing a securities-law investigation by Hagens Berman, an investor-rights law firm, after Chief Executive Arvind Krishna’s July 14 shareholder letter previewed disappointing second-quarter results. The stock fell 25% that day, wiping out more than $68 billion in market value. The firm’s focus is whether IBM made misleading statements about its Z mainframe business, particularly the z17, following strong first-quarter results and upbeat April guidance. In the Q2 report, overall revenue grew just 1% and infrastructure revenue dropped 7%. Krishna attributed the miss to customers changing capital-spending priorities, several large deals that failed to close, and the company’s own internal missteps. Investigators are asking when IBM learned that major deals might not close in time.