Arvind Krishna says "large capex deals at large clients" were absent

IBM, facing a reduced annual revenue growth forecast and a second-quarter earnings miss, is experiencing a slowdown in large capital expenditure agreements with major customers, according to CEO Arvind Krishna. This shift in corporate spending, prioritizing AI-focused data-center equipment over traditional software and mainframe computers, has led to a significant drop in IBM's stock value. While some of these deferred deals are now closing in the current quarter, the company's infrastructure revenue, particularly from its Z mainframe business, saw a substantial decline.