Which stocks were affected?

Shares of Salesforce, ServiceNow, CrowdStrike, Atlassian, monday.com, and Agilysys.

Does this mean the software sector is in crisis?

Not necessarily, but it indicates a shift in enterprise tech spending priorities.

IBM Earnings Warning Sends Software Stocks Lower

IBM issued a second-quarter earnings warning, indicating enterprise customers may cut software budgets to fund hardware purchases. This triggered a decline in shares of Salesforce, ServiceNow, and CrowdStrike.

July 14, 2026

2 min read

Source: StockStory

Shares of several major software companies declined in afternoon trading after IBM (IBM) issued a second-quarter earnings warning, raising concerns about a slowdown in enterprise software spending.

Reasons for the Move

IBM stated that enterprise customers may be slashing software budgets to fund hardware purchases, which could negatively impact software sector revenues. The warning weighed on enterprise software stocks.

Affected Stocks

Salesforce (CRM): The stock fell notably.
ServiceNow (NOW): Shares declined.
CrowdStrike (CRWD): Also dropped.
Atlassian, monday.com, and Agilysys: All experienced declines.

Context

The warning comes at a sensitive time for the tech sector, as markets watch for signs of slowing enterprise spending. Conversely, hardware companies like IBM may benefit from this shift.

What This Means for Investors

Investors should monitor upcoming earnings reports from software companies to gauge the extent of this trend. The warning could signal a change in tech spending priorities.

Frequently Asked Questions

Due to IBM's warning that customers may cut software budgets to fund hardware purchases.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.