IBM (NYSE:IBM) Stock Falls 22% Year-to-Date, Revenue Slows

International Business Machines (NYSE:IBM) shares are down about 22% year to date, trading near $230, which is 30% lower than its record close of $329.23 on June 2. The stock saw a significant drop of 25% on July 14 after IBM's preliminary second-quarter results missed expectations. Revenue grew only 1% year over year to $17.2 billion in Q2, and management has reduced its revenue growth outlook for 2026 to 4-5%. Despite challenges, IBM expects free cash flow to increase to approximately $15.7 billion, supporting its long-standing dividend growth. This matters for investors as the expected cash flow helps sustain the dividend yield of just under 3%.

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