IBM Shares Drop 25.2% on Earnings Warning; Employee 401(k)s Lose $400 Million

IBM's preliminary second-quarter results, released July 14, 2026, came in below expectations. Yahoo Finance reported shares plunged 25.2%, heading toward their worst day in nearly 40 years. MarketWatch reported IBM employees lost more than $400 million in their 401(k) retirement accounts, the tax-advantaged workplace savings plans. IBM published final second-quarter results July 22.