The Detail in IBM’s Earnings Pre-Announcement That Has Stock Headed for Worst Day in Nearly 40 Years

IBM stock was heading for its largest same-day plunge in nearly 40 years on Tuesday after the company’s preliminary second-quarter adjusted earnings and revenue missed analysts’ targets.

In a letter to shareholders, CEO Arvind Krishna explained that the shortfall was largely driven by the company’s infrastructure business. “What played out was worse than our expectations,” Krishna wrote.