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IBM sinks 7% as CEO's AI spending caution overshadows earnings beat; Accenture and infosys ease back. IBM's CEO just raised a red flag about AI spending that rattled investors and rippled through the entire tech sector, even as the company posted a clean earnings beat. The question is whether his warning signals a broader shift in... A quarter that topped Wall Street forecasts on revenue and adjusted earnings is drawing sellers into International Business Machines (NYSE:IBM | IBM Price Prediction), as an unchanged full-year outlook and pointed artificial intelligence (AI) commentary from the chief executive set the tone. IBM stock is down 7% to $233.50 in morning trading. Today's selling pressure is powerful in the technology sector. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.9% on AI spending worries, while the iShares U.S. Technology ETF (NYSEARCA:IYW) is down 2%. Chief executive Arvind Krishna delivered that commentary after IBM reported third-quarter 2026 results on October 21. The company sells the software, mainframes and consulting companies use to implement AI, so his caution reaches across information technology services. Earnings beat collides with an unchanged revenue forecast. Key data−. Previous Close Market Cap Day's Range 52wk Range Dividend Yield IBM's Q3 2026 revenue reached $17.1 billion, ahead of the $16.84 billion estimate. The company's adjusted earnings per share (EPS) of $2.95 also topped the $2.87 consensus. Software revenue at IBM rose 8% to $7.8 billion, accelerating from the prior quarter on 11% growth at Red Hat. That strength didn't change the full-year view, as IBM kept its constant-currency revenue growth forecast at 4% to 5%. The unchanged forecast disappointed investors who had hoped for an increase. Krishna flags AI spending with no real return. On IBM's conference call, Krishna stated that enterprise customers are becoming "a lot more cognizant and a lot more aware of what is the true ROI of all of their AI spend." Clients are also nervous about "some of the AI spending completely out of control with no real return," he added. Krishna framed that shift as an opening, since clients want help redesigning workflows and controlling token spending: "That is the tailwind for us." The steep drop in IBM stock signals that the warning is driving the reaction. Free Report, Just Released Why Didn't ACN Make The Top 10 List? 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. And ACN didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. IBM's chief executive also recommended companies to "pick a few" AI initiatives and scale them, warning against running "100 little experiments" that never get enough investment. Riding an AI mania is fine as long as you plan the exit, something we covered in a free handbook on both halves of the trade. Mainframe revenue from IBM Z fell 20% as the product cycle matured, while quarterly free cash flow reached $3.03 billion and management raised its full-year target for that metric to an increase of more than $1 billion. IBM's consulting business grew just 0.2%, a soft spot close to the work Krishna described. Accenture and infosys post milder declines. Meanwhile, Accenture (NYSE:ACN) shares are down 0.5% to $239, a far smaller drop than IBM's. Infosys (NYSE:INFY) stock is down 2% to $12.44, steeper than Accenture but well short of the slide in IBM stock. Both of these companies sell the consulting work Krishna described. So, their softer declines suggest that the damage is mostly contained to IBM stock. IBM's software outlook faces its next test. IBM's fourth-quarter results will test its software growth. Management expects full-year software expansion of 7% to 8%, with 7% as its revised base case, and double-digit Red Hat gains in the fourth quarter. IBM beat on both lines, accelerated software growth and raised its cash flow goal. Against that are an unchanged revenue forecast, a shrinking mainframe line and total debt of $63.8 billion, up $2.6 billion year to date. Investors considering IBM stock exposure should size their positions carefully given that mix. Got $1,000? Before you buy ACN, read this. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And ACN wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list ->> David Moadel David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master's degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.

Red Hat opens Singapore AI Centre of Excellence as strategic AI innovation hub for Asia Pacific. October 22, 2026 Red Hat, the world's leading provider of open source solutions, introduced Red Hat's APAC AI Centre of Excellence (CoE) in Singapore. Supported by the Singapore Economic Development Board (EDB), the Centre will help organisations evolve from AI experimentation towards production deployment using Red Hat's open source technologies and engineering expertise. Red Hat has established the Centre to meet growing regional demand for trusted, enterprise-ready AI. The CoE's engineering teams will help organisations move AI workflows into production through two complementary paths developing reusable software architectures that address common industry challenges, and contributing code directly to upstream open source projects in an effort to address enterprise requirements in system deployment, runtime optimisation, platform management and more. To harness the CoE's capabilities, the Singapore Defence Science and Technology Agency (DSTA) is collaborating with Red Hat to explore and co-develop AI and cloud-native solutions that strengthen capabilities in these areas and that the DSTA can then apply to defence applications. Basing these engineering capabilities in Singapore shortens the feedback loop between customers, partners and Red Hat's core product teams. This connection helps maintain development roadmaps grounded in customer requirements, accelerates solution delivery and strengthens Red Hat's ability to co-innovate with organisations across the region. Nurturing local talent to promote a thriving AI ecosystem. The AI CoE will give organisations expanded access to Red Hat's AI, hybrid cloud and platform engineering expertise, while strengthening in-region technical capabilities in Singapore. The CoE includes a dedicated innovation team comprising engineers, forward-deployed engineers, architects and project managers all centered on making AI/ML deployments successful in customer environments. The Centre will also support skills development in areas critical to modern AI deployment, including software engineering, automation, cloud-native development and DevSecOps, for customers and partners to strengthen their own specialized internal capabilities. Bringing production necessities into the Centre. Drawing on Red Hat's open-source expertise and DSTA's engineering capabilities and defence domain knowledge, both organisations will jointly develop scalable solutions in AI, cloud computing, application modernisation and edge computing to support multi-cloud operations. This includes jointly establishing architectures and practices for Development, Security and Operations (DevSecOps) and Day 2 operations for AI and cloud systems at scale, across both on-premise and off-premise environments. These efforts aim to accelerate the development and deployment of AI solutions at scale, enabling greater agility for the DSTA in anticipating and addressing evolving defence requirements in the AI era. Red Hat's APAC AI Centre of Excellence aligns with Singapore's National AI Strategy, providing contributions to the country's broader AI ecosystem with talent, technology and real-world use cases. EDB's support for the Centre, Red Hat's open source AI expertise and DSTA's co-engineering collaboration provide a model for translating AI capability-building into practical innovation in Singapore and across Asia Pacific. Supporting quotes. Daniel Aw, Vice President & General Manager, Red Hat Asia Pacific "AI adoption is moving rapidly from experimentation towards execution, and organisations need open platforms and hands-on engineering expertise to make that transition responsibly. Through Red Hat's APAC AI Centre of Excellence, we are expanding that capability in Singapore. EDB's support enables us to grow the Centre here, while our co-engineering with DSTA demonstrates how it can be applied to complex, real-world use cases." Yueh Chinn Seah, Vice President, Digital Industry Singapore "Red Hat's APAC AI Centre of Excellence deepens Singapore's capabilities in open source enterprise AI. The Centre bolsters Singapore's position as a key AI hub creating opportunities for local talent to deepen their engineering capabilities. We are excited to work with Red Hat to scale AI solutions across Southeast Asia and beyond." Gayle Chan, Deputy Chief Executive (Information), Defence Science and Technology Agency "DSTA continually explores new approaches to strengthen the capabilities we deliver for Singapore's defence. Through our collaboration with Red Hat under the AI Centre of Excellence, we look forward to co-engineering and scaling AI and cloud-native solutions relevant to our technology needs for cloud and on-premise environments. As threats become more complex, it is important that we continue to push the boundaries of technology and innovation to stay ahead of the curve."

Red Hat opens Singapore AI Centre of Excellence as strategic AI innovation hub for Asia Pacific. Singapore: Red Hat, the world's leading provider of open source solutions, today introduced Red Hat's APAC AI Centre of Excellence (CoE) in Singapore. Supported by the Singapore Economic Development Board (EDB), the Centre will help organisations evolve from AI experimentation towards production deployment using Red Hat's open source technologies and engineering expertise. Red Hat has established the Centre to meet growing regional demand for trusted, enterprise-ready AI. The CoE's engineering teams will help organisations move AI workflows into production through two complementary paths: developing reusable software architectures that address common industry challenges, and contributing code directly to upstream open source projects in an effort to address enterprise requirements in system deployment, runtime optimisation, platform management and more. To harness the CoE's capabilities, the Singapore Defence Science and Technology Agency (DSTA) is collaborating with Red Hat to explore and co-develop AI and cloud-native solutions that strengthen capabilities in these areas and that the DSTA can then apply to defence applications. Basing these engineering capabilities in Singapore shortens the feedback loop between customers, partners and Red Hat's core product teams. This connection helps maintain development roadmaps grounded in customer requirements, accelerates solution delivery and strengthens Red Hat's ability to co-innovate with organisations across the region. Nurturing local talent to promote a thriving AI ecosystem The AI CoE will give organisations expanded access to Red Hat's AI, hybrid cloud and platform engineering expertise, while strengthening in-region technical capabilities in Singapore. The CoE includes a dedicated innovation team comprising engineers, forward-deployed engineers, architects and project managers all centered on making AI/ML deployments successful in customer environments. The Centre will also support skills development in areas critical to modern AI deployment, including software engineering, automation, cloud-native development and DevSecOps, for customers and partners to strengthen their own specialized internal capabilities. Bringing production necessities into the Centre Drawing on Red Hat's open-source expertise and DSTA's engineering capabilities and defence domain knowledge, both organisations will jointly develop scalable solutions in AI, cloud computing, application modernisation and edge computing to support multi-cloud operations. This includes jointly establishing architectures and practices for Development, Security and Operations (DevSecOps) and Day 2 operations for AI and cloud systems at scale, across both on-premise and off-premise environments. These efforts aim to accelerate the development and deployment of AI solutions at scale, enabling greater agility for the DSTA in anticipating and addressing evolving defence requirements in the AI era. Red Hat's APAC AI Centre of Excellence aligns with Singapore's National AI Strategy, providing contributions to the country's broader AI ecosystem with talent, technology and real-world use cases. EDB's support for the Centre, Red Hat's open source AI expertise and DSTA's co-engineering collaboration provide a model for translating AI capability-building into practical innovation in Singapore and across Asia Pacific. Supporting Quotes Daniel Aw, Vice President & General Manager, Red Hat Asia Pacific "AI adoption is moving rapidly from experimentation towards execution, and organisations need open platforms and hands-on engineering expertise to make that transition responsibly. Through Red Hat's APAC AI Centre of Excellence, we are expanding that capability in Singapore. EDB's support enables us to grow the Centre here, while our co-engineering with DSTA demonstrates how it can be applied to complex, real-world use cases." Yueh Chinn Seah, Vice President, Digital Industry Singapore "Red Hat's APAC AI Centre of Excellence deepens Singapore's capabilities in open source enterprise AI. The Centre bolsters Singapore's position as a key AI hub creating opportunities for local talent to deepen their engineering capabilities. We are excited to work with Red Hat to scale AI solutions across Southeast Asia and beyond." Gayle Chan, Deputy Chief Executive (Information), Defence Science and Technology Agency "DSTA continually explores new approaches to strengthen the capabilities we deliver for Singapore's defence. Through our collaboration with Red Hat under the AI Centre of Excellence, we look forward to co-engineering and scaling AI and cloud-native solutions relevant to our technology needs for cloud and on-premise environments. As threats become more complex, it is important that we continue to push the boundaries of technology and innovation to stay ahead of the curve." About Red Hat, LLC Red Hat is the open hybrid cloud technology leader, delivering a trusted, consistent and comprehensive foundation for transformative IT innovation and AI applications. Its portfolio of cloud, developer, AI, Linux, automation and application platform technologies enables any application, anywhere - from the datacenter to the edge. As the world's leading provider of enterprise open source software solutions, Red Hat invests in open ecosystems and communities to solve tomorrow's IT challenges. Collaborating with partners and customers, Red Hat helps them build, connect, automate, secure and manage their IT environments, supported by consulting services and award-winning training and certification offerings. Forward-Looking Statements Except for the historical information and discussions contained herein, statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company's current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially. Any forward-looking statement in this press release speaks only as of the date on which it is made. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements.