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IBM falls despite posting better-than-expected Q1 results
IBM’s stock fell in after-hours trading despite exceeding Q1 revenue and EPS expectations. The drop is attributed to the company’s Q1 earnings report omitting an internal metric previously used to track the progress of its AI business, which stood at $12.5 billion at the end of 2025. This, combined with previous concerns over Anthropic’s Claude Code impacting IBM’s mainframe business, contributed to investor apprehension.