From The Motley Fool · Daniel Sparks · · 1m 10s
IBM Stock 29% Below June High
IBM stock drops 29% from June high as software growth stalls.
In brief
IBM stock drops 29% from June high as software growth stalls. IBM stock trades 29% below June high with software growth at 5% as it awaits third-quarter results. Originally reported by The Motley Fool.
IBM stock price
Shares trade around $234 two days before Wednesday's third-quarter report.
Stock decline
IBM stock has fallen 21% in 2026 and is 29% below June's all-time high of $329.23.
Software growth slowdown
Software revenue grew 5% year over year but without acquisitions, it was flat.
Quarterly software performance
Software segment revenue grew 14% in Q4 2025, eased to 11% in Q1 2026, and 5% in Q2 2026.
Management explanation
CFO James Kavanaugh said customers moved budgets to hardware before price rises.
Recurring revenue growth
Recurring revenue rose 7% in Q1 and accelerated to 8% in Q2 with potential for 10% in H2.
Expected software growth
IBM expects software revenue growth of 6% to 8% this year with potential for double-digit growth in H2.
Dividend yield
IBM's dividend yields around 2.9% with 31 straight quarterly increases.
Here's the gist
IBM stock trades 29% below June high with software growth at 5% as it awaits third-quarter results.
