Why is IBM stock down 5% despite Q3 earnings beat? Why is IBM stock down 5% despite Q3 earnings beat? Author Vatsala Gaur Vatsala G. Oct 22, 2026, 07:36 AM Buy Microsoft. If enterprises demand proof of AI ROI, they'll concentrate spend with the platforms that already monetize AI at scale (Azure + Copilot). IBM's warning implies customers will be more selective; Microsoft is the "default†selection for measurable productivity gains, so relative share should improve as budgets tighten. Key Risk: AI ROI scrut ...