The initial quarterly revenue reported by IBM fell short of analysts' expectations, and CEO Arvind Krishna said customers are tightening spending. The company's stock price then fell. IBM said in a statement on Tuesday that revenue for the second fiscal quarter was $17.2 billion. That's less than Bloomberg's average analyst estimate of $17.9 billion. Krishna said that in response to industry-wide supply shortages, customers are shifting capital expenditure to servers, storage and memory devices, leading to a reduction in investment in IBM software products. “In this environment, our team had to be perfect, and we didn't meet the standards this quarter,” Krishna said. “We weren't able to respond and execute fast enough, and many large deals were not signed in time, which is the main reason why our performance fell short of expectations.” Before the opening of the New York stock market, IBM's stock price fell by more than 17%. The stock closed at $290.23 on Monday.

The initial quarterly revenue reported by IBM fell short of analysts' expectations, and CEO Arvind Krishna said customers are tightening spending. The company's stock price then fell. IBM said in a statement on Tuesday that revenue for the second fiscal quarter was $17.2 billion. That's less than Bloomberg's average analyst estimate of $17.9 billion. Krishna said that in response to industry-wide supply shortages, customers are shifting capital expenditure to servers, storage and memory devices, leading to a reduction in investment in IBM software products. “In this environment, our team had to be perfect, and we didn't meet the standards this quarter,” Krishna said. “We weren't able to respond and execute fast enough, and many large deals were not signed in time, which is the main reason why our performance fell short of expectations.” Before the opening of the New York stock market, IBM's stock price fell by more than 17%. The stock closed at $290.23 on Monday.