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IBM shares suffered a record 25% decline after preliminary Q2 results missed estimates, while analysts reassessed revenue growth and AI expectations.
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IBM gained 1.13% to $234.31 in the latest session, outperforming the S&P 500's 1.06% gain. However, the stock has underperformed over the past month, declining 1.79% compared to the sector's 3.99% gain. Analysts project Q3 EPS of $2.9 (up 9.43% YoY) and revenue of $16.88 billion (up 3.34% YoY). IBM holds a Zacks Rank #3 (Hold) with a Forward P/E of 18.79, trading at a discount to its industry average of 20.27.