IBM’s earnings report looks pretty bad—down more than 20% in pre-market trading. Enterprise IT spending is shifting toward hardware, with large orders delayed, and even an old tech giant can’t withstand the pressure from the cycle.

CoinDesk News: IBM shares fell more than 20% in pre-market trading after the company’s preliminary Q2 earnings failed to meet Wall Street expectations. CEO Arvind Krishna said the performance decline was due to customers shifting spending from software and infrastructure to hardware purchases, with several large deals also delayed until after the end of the quarter. IBM reported adjusted earnings per share of $2.93 and revenue of $17.2 billion, both below analysts’ expectations of $3.01 and $17.86 billion. The weak results have raised concerns about enterprise IT spending, impacting investor sentiment.