Jim Cramer: IBM CEO surprised by earnings miss

Published Jul 25, 07:54 AM UTC

Jim Cramer commented on International Business Machines Corporation (IBM) after its shares dropped 26% year-to-date and 25% on July 14, 2026, following a preliminary Q2 earnings release. IBM reported revenue of $17.2 billion and EPS of $2.93, missing analyst estimates of $17.86 billion and $3.01. CEO Arvind Krishna admitted the company did not adapt quickly enough, citing a shift in business spending toward hardware like memory chips and servers. Cramer noted the CEO's surprise, calling it significant. Following the news, Citi cut IBM's price target to $245 from $255, and Argus reduced it to $280 from $360, though both maintained Buy ratings. Hedge fund AQR Capital Management increased its stake by 121% in Q1, and Arrowstreet Capital disclosed a new $48.7 million stake. Cramer had previously expressed caution about IBM's stock volatility.