By Purvi Agarwal and Shashwat Chauhan
Publication Date: 2026-04-23 10:50:00
By Purvi Agarwal and Shashwat Chauhan
April 23 (Reuters) – U.S. technology stocks diverged further on Thursday as results from IBM and ServiceNow rekindled fears of AI‑driven disruption in software, while an upbeat outlook from Texas Instruments lifted some chipmakers, underscoring a widening winner-loser divide.
International Business Machines shares slumped 10.3% after reporting a slowdown in its first-quarter revenue growth, pressured by weakness in its software business, which includes its Red Hat cloud unit.
ServiceNow tumbled nearly 15% after flagging a hit to its first-quarter subscription revenue growth, citing delays in Middle East deals due to the ongoing Iran conflict.
Both companies reported first-quarter revenue and profit above analysts’ expectations, but the results failed to allay investor fears about the sector.
“While one might think that ServiceNow and other software stocks are already pricing in some deceleration amidst the…
