IBM hit by 15 contract cancellations linked to DOGE cost cuts

IBM’s stock fell by 6% after 15 federal contracts worth around 100 million USD were canceled due to DOGE austerity measures. Despite this, the company exceeded earnings forecasts, reporting a projected revenue of 16.4 billion USD to 16.8 billion USD for Q2 2025.

The company’s AI bookings surpassed 6 billion USD, with 80% coming from consulting services. CEO Arvind Krishna affirmed that there was no significant change in client purchasing behavior despite macroeconomic challenges, maintaining the forecast for at least 5% revenue growth in 2025.

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