IBM's $17.2B Q2 forecast misses estimates, Infosys Wipro ADRs tumble
IBM just dropped a forecast that's got the Indian tech scene buzzing.
The company expects second-quarter revenue of $17.2 billion, below the analyst estimate of $17.86 billion, and its clients shifted spending toward AI infrastructure, leaving less room for traditional software and services spending.
That news hit big names like Infosys and Wipro hard, with their U.S.-listed shares (ADRs) tumbling 7% and 3%.
Enterprise budgets shift toward AI hardware
Enterprise budgets are now moving toward AI hardware (think servers and storage) instead of traditional software.
Clients rushed to buy supply-limited equipment before prices go up, leaving less cash for software deals.
IBM CEO Arvind Krishna pointed out this trend, saying late June spending showed the shift clearly.
With weaker demand in banking and retail, analysts warn Indian IT firms could face slow growth ahead.