IBM stock declined 6.8% in after-hours trading following the release of quarterly results that showed slower year-over-year revenue growth. The sharp pullback contrasts with broader market gains and underscores investor sensitivity to IBM’s top-line performance.

IBM reported revenue growth deceleration that fell short of investor expectations, fueling concerns about its ability to sustain momentum in key segments. Slower expansion in hybrid cloud and AI services highlighted challenges in converting long-term investments into near-term returns.

Market participants expressed worry that AI startup Anthropic’s rapid advancements in language models could erode demand for IBM’s Watson offerings and cloud infrastructure. The potential disruption from nimble competitors intensified scrutiny of IBM’s strategic positioning in the AI market.