Michael Burry shares the earnings reports he's watching to see if IBM's disastrous quarter is an industrywide problem
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Jul 15, 2026, 12:36 PM ET
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IBM stock plunged on Tuesday in its worst single day of trading ever. The question is, now: is this an IBM issue or a software-sector problem?
For investors trying to figure it out, Michael Burry says there are a few key earnings reports in the pipeline they should be watching.
"The Big Short" investor wrote on Wednesday that the dramatic plunge in IBM stock might amount to an overreaction on Wall Street, but upcoming earnings reports will reveal the answer.
"Today's problem looks less problematic if management's explanation is corroborated by other companies throughout earnings season," he wrote on his Substack.
The problem in this case is IBM's failure to adapt quickly and navigate the AI-driven market, as CEO Arvind Krishna discussed in a letter to shareholders on Tuesday.
While news of the company's warning and the lackluster quarter was enough to send IBM stock into a nosedive, Burry said investors should be looking to some of IBM's peers that are scheduled to report in the coming weeks to know if panic is warranted.
" SAP is one to watch," he wrote. " ServiceNow is on July 29th, and Microsoft around then too. Wipro is on July 17th, Infosys on July 23r, Cognizant and Capgemini report in late July/early August. We will see if these companies also saw that revenue diversion at the end of the quarter."
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Burry noted that while he sees Accenture as the best comparison for IBM, the consulting giant doesn't report earnings until September. While he compared IBM to Palantir in a different section of the note, he didn't name as one to watch, though he reiterated his bearish stance on the AI stock.
Enterprise software and IT consulting services aren't the only sections of the tech sector that Burry is keeping tabs on this earnings season, though. He also highlighted cybersecurity as a sector that could provide further insight for investors.
"Checkpoint on July 29th, Fortinet in early August, Palo Alto Networks in mid August, CrowdStrike and Zscaler in late August - All of these should report extra bump in revenues as well if IBM's excuse on cybersecurity concerns being a distraction is accurate," Burry said.
He raised the possibility, though, that despite IBM's grim outlook, customers may not be abandoning it all together, rather temporarily shifting their spending, which other tech earnings report may confirm in the coming weeks.
"Validation of IBM's reasons might suggest a mania in AI buildout parts is not a good reason to give up on IBM," Burry added.
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Samuel O'Brient is an experienced financial markets and business journalist who has written extensively on a wide range of topics involving economics, technology and public policy. At Business Insider, he covers important macro and micro economic stories, including takes from leading economists and hedge fund managers, breaking IPOs, corporate bankruptcies, meme stocks and short-selling. He also writes on other markets such as crypto, oil and real estate.He has interviewed many of the market’s most influential voices, ranging from top economists such as Mark Zandi and Richard Thaler to prominent investors including Danny Moses, Andrew Left, Anthony Scaramucci, Louis Navellier and Grant Cardone.Programs such as LiveNOW from Fox and Taking Stock have had Samuel on to discuss stock market developments. His reporting has been cited by The New York Times DealBook, Bloomberg Radio, Forbes, Entrepreneur and TheFutureParty.Samuel began at InvestorPlace, covering investing, retail trading and macro economic trends. Prior to joining Business Insider, he served as a technology markets reporter at TheStreet. He is a graduate of Sarah Lawrence College and Trinity College Dublin.Samuel's work has appeared in publications such as TipRanks, EV and Observer. When he isn't chasing down stories, he can often be found browsing book and record shops. To reach Samuel, email him at sobrient@insider.com or connect with him on LinkedIn. He is also on Signal as Samuel Clemens. Popular Articles: A Nobel economist has a warning for meme stock tradersThe business school dropout who kicked off the Beyond Meat rally wants you to know he's not Roaring Kitty 2.0 A top economist who thinks we're on the brink of a recession says he's eyeing these 3 warning signs Trump's 401(k) executive order marks big changes for retirement savings — and possibly puts your money at risk Why hedge fund icon Ray Dalio says you shouldn't invest in real estate in this economy AI bullishness is soaring, but pros see a major opportunity brewing in an overlooked corner of the market
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