IBM cuts yearly revenue growth forecast as customers prioritize AI infrastructure spending

IBM cut its annual revenue growth forecast on Wednesday, days after shocking Wall Street with a warning that corporate spending was shifting toward AI-focused data-center gear at the expense of its software and mainframe computers.

The company also missed profit and revenue expectations for the second quarter ended June 30, but executives sought to reassure shareholders that customers prioritized spending on ‌AI in the ⁠quarter but ⁠were not looking to move away from mainframes in the longer term.