NEW YORK, June 18, 2026 — Shares of International Business Machines Corporation (IBM) tumbled nearly 7% in early trading Thursday, dragged down by a cautious outlook from consulting giant Accenture plc (ACN) and fresh worries about the lack of control enterprises have over artificial intelligence systems. The selloff weighed heavily on the broader IT services sector, which includes companies that provide outsourced technology and consulting services.
IBM stock was down $18.15, or 6.9%, at $244.20 by mid-morning. In contrast, the broader market was higher, with the SPDR S&P 500 ETF (SPY) adding 0.6% and the Invesco QQQ Trust (QQQ) climbing 1.8%. Accenture shares plunged 17.2% to $129.20, leading the sector lower.
Accenture's Downbeat Guidance
The negative sentiment was sparked by Accenture, which cut its full-year sales guidance and projected fourth-quarter revenue below Wall Street expectations, according to Reuters. The firm now expects local-currency revenue growth of 3% to 4%, down from its prior range of 3% to 5%. This softer forecast raised concerns about demand for traditional IT services, even as Accenture CEO Julie Sweet noted “more large-scale AI transformation programs” and strong demand for reinvention projects.
Other IT services firms also felt the pressure. Shares of Infosys Limited (INFY) and Cognizant Technology Solutions Corporation (CTSH) traded lower in pre-market activity as investors reassessed the demand outlook for tech services.
IBM's AI Study Adds to Anxiety
Adding to the unease was a study released June 17 by the IBM Institute for Business Value. The survey of executives found that 91% do not fully understand their AI dependencies across vendors, models, and infrastructure. Moreover, 71% said switching a primary AI vendor or model would be difficult. Ana Paula Assis, an IBM executive, warned that AI has introduced “new forms of dependency,” potentially leading to margin pressure or business disruption if control is lost.
While IBM positions its governance, hybrid cloud, and consulting services as solutions to these challenges, investors on Thursday appeared to focus on the risks. The fear is that clients, worried about vendor lock-in, data policy issues, and potential downtime, may delay or scale back large AI projects.
Market Context and Implications
The timing of the selloff is notable. U.S. markets are open Thursday, but the New York Stock Exchange will close Friday, June 19, for the Juneteenth holiday. This gives investors a shortened week to price in sector risks before trading resumes Monday.
IBM’s exposure to consulting is significant, though the company also has substantial software and infrastructure businesses. The market is watching whether rising enterprise AI spending can compensate for weaker demand in traditional services. IBM has maintained its full-year 2026 constant-currency revenue growth guidance of above 5% and expects free cash flow to increase by about $1 billion year-over-year after capital expenditures.
Some analysts argue Thursday’s drop may be overdone. Clients anxious about AI sovereignty could actually accelerate purchases of IBM’s governance software, Red Hat hybrid cloud products, or advisory services. Conversely, chief information officers might postpone spending until they gain clarity on which models, data, or clouds they will truly control.
For now, IBM shares are behaving more like an AI play than a defensive tech stock. The key question is whether the company can demonstrate that higher AI demand is translating into current revenue, rather than merely deferring contracts into the future.
