IBM Earnings
Enterprise software spending is stuttering as AI buying delays ripple through the sector, setting up IBM's earnings as a key test of whether the AI boom still has legs.
Pegasystems (PEGA), a software company that helps large businesses run their operations, crashed 15% after reporting earnings that missed expectations because clients postponed purchases while waiting to figure out AI spending (Seeking Alpha). This echoes a broader pattern: companies aren't sure how to spend their AI budgets yet, so they're hitting pause. IBM's earnings on July 22nd will show whether this AI-spending hesitation is hitting the entire software industry or just specific players.
Norway's state oil company Equinor nearly doubled profits to $11.5 billion in Q2 2026 after the US-Iran conflict drove oil prices toward $94 per barrel, creating acute supply fears in global markets (Guardian Business). Higher energy costs ripple through corporate balance sheets—including tech companies like IBM that depend on power-hungry data centers. This geopolitical tail risk is now live, and will likely come up when IBM discusses costs and future capital spending.
IBM reports on July 22nd just as the software sector shows real cracks in AI-driven spending plans, with major enterprise clients pushing pause buttons (per Pegasystems' warning above). This is the earnings test that matters: either IBM can show its AI services and cloud business are immune to the broader hesitation, or it confirms the slowdown is systemic. Investors and analysts will be watching to see whether IBM's guidance hints at tougher enterprise budgets ahead.