How much market value did IBM lose?

IBM lost nearly a quarter of its market value, its worst single-day decline since its IPO nearly 60 years ago.

Which stocks were affected?

Shares of Microsoft, Salesforce, Adobe, and ServiceNow were affected along with IBM.

Is there a link between IBM's warning and cybersecurity?

Yes, IBM indicated clients are spending more on cybersecurity, which may hurt traditional software companies.

Software Stocks Slide After IBM Warns of Spending Shift

Major software stocks declined after IBM warned that clients are shifting spending toward servers and cybersecurity, causing IBM to lose nearly a quarter of its market value in its worst single-day drop since its IPO nearly 60 years ago.

July 15, 2026

2 min read

Source: Stocktwits

Key Numbers

ibm decline

~25%

ibm single day decline

steepest since IPO nearly 60 years ago

Shares of major software companies including Microsoft (MSFT), Salesforce (CRM), Adobe (ADBE), and ServiceNow (NOW) fell after IBM (IBM) warned that client spending is shifting toward servers and cybersecurity. IBM lost nearly a quarter of its market value on Tuesday, marking its steepest single-day decline since its IPO nearly 60 years ago.

Potential Causes

IBM indicated that clients are redirecting budgets toward server infrastructure and cybersecurity solutions, at the expense of traditional software. This shift raised concerns about slowing demand for software products from other companies in the sector.

Context

The warning came after a period of strong performance for software stocks, with optimistic expectations for spending on AI and cloud computing. However, IBM's comments showed that some clients may prefer investing in infrastructure over software.

Similar Moves in the Sector

Losses were not limited to IBM alone but extended to other software companies such as Adobe and Salesforce, indicating a broad sell-off in the sector.

Frequently Asked Questions

After IBM warned that clients are shifting spending toward servers and cybersecurity, raising concerns about slowing demand for software.

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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.