New York, Feb 4, 2026, 11:51 EST — Regular session
- IBM shares dive further, pressured by mounting concerns over AI risks in software and tech services.
- Sector jitters deepened as new AI tools from Anthropic hit the scene, while Gartner delivered a gloomy outlook.
- Focus now turns to IBM’s February dividend record date and its upcoming earnings report.
International Business Machines Corp shares dropped $9.19, or 3.1%, to $285.12 in late morning trading on Wednesday. During the session, the stock swung between $279.13 and $296.10.
The decline is significant given IBM’s status as a Dow heavyweight, and the selloff is taking on the feel of a broader issue rather than just a single stock. U.S. equities closed sharply lower Tuesday amid concerns that AI might ramp up competition among software companies, ahead of a wave of big-tech earnings later this week.
The latest shakeup followed AI startup Anthropic’s rollout of plug-ins for its Claude Cowork agent, moving further into territory traditionally reserved for enterprise software vendors. AI “agents” aren’t just about answering questions—they’re built to handle multi-step tasks independently. “We are not yet at the point where AI agents will destroy software companies,” said Ben Barringer, head of technology research at Quilter Cheviot. Reuters
Gartner, a key IT advisory firm, dropped another warning by forecasting 2026 revenue and profit below analyst estimates. Its consulting segment also saw a roughly 13% drop in fourth-quarter revenue. UBS analyst Joshua Chan highlighted investor focus on the speed of 2026 contract value growth, a key metric tracking signed deals that hint at future revenue.
IBM is caught between two pressures. It sells enterprise software but also operates a big consulting arm, which relies heavily on client budgets and lengthy projects.
The bet driving much of the selling is that boards will view AI tools as a cost-effective alternative to certain vendor software and external consulting. When that happens, pressure tends to emerge during contract renewals and new business opportunities.
IBM pushed forward with its AI agenda, launching a global request for proposals for its Impact Accelerator program, which targets education and workforce development. IBM executive Justina Nixon-Saintil emphasized, “Education and workforce systems are under pressure to adapt faster than ever.” The deadline to submit proposals is March 25. IBM Newsroom
Last week, the company forecasted full-year revenue growth above 5% on a constant-currency basis, excluding currency fluctuations. It also announced a quarterly dividend of $1.68 per share, payable March 10 to shareholders of record as of Feb. 10.
But the trade could worsen. Should investor concern pivot from “more competition” to “structural pricing damage,” valuations might shrink quickly, and diversified firms won’t escape unscathed.
Traders are looking for clues that the software slump might be leveling off, while also tuning in for fresh remarks from companies about expanding their in-house AI tool development.
IBM’s next key date is its Q1 earnings release, tentatively set for April 22, according to the company’s investor events calendar.
