Shares of IBM IBM.N were up about 3% at $211.50 in extended trading.
The company cut its annual revenue growth forecast days after warning that corporate spending was shifting toward AI-focused data center gear at the expense of its software and mainframe computers.
IBM expects 2026 revenue growth between 4% and 5%, down from its previous expectations of more than 5% growth.
It posted second-quarter revenue growth of 1% to $17.16 billion, missing estimates of $17.58 billion, according to LSEG-compiled data.
IBM logged second-quarter adjusted profit of $2.93 per share versus the estimate of $2.97 per share.
As of the last close, the stock was down 30% year to date.
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