IBM Drops After Software Sales Fail to Shake AI Concerns

International Business Machines Corp. shares declined after the company posted quarterly sales in its software unit that were in line with estimates, failing to shake investor concerns about AI disruption to its business.

Software revenue increased 11% to $7.05 billion in the period ended March 31, the company said Wednesday in a statement. Total revenue increased 9% to $15.9 billion compared with analysts’ average estimate of $15.7 billion.