After shocking quarter, IBM insists that AI isn’t killing the mainframe

IBM’s stock fell after the company warned of disappointing mainframe sales in its latest quarter. CEO Arvind Krishna argued that customers are temporarily redirecting IT budgets toward AI projects, not abandoning the mainframe business.

The comments suggest enterprise AI spending is reshuffling near-term technology budgets rather than simply expanding them. If accurate, IBM may face a timing issue, but prolonged budget pressure could challenge the durability of legacy hardware demand.