Is this evidence of an AI earnings bubble?
It's the data point analysts are pointing to. A roughly 3% EPS miss triggering a 25% stock collapse is a wildly disproportionate reaction, which Fortune's coverage framed as evidence of an 'earnings bubble' — where the risk is that AI-era profit expectations, not just stock valuations, have become inflated.
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IBM Just Had Its Worst Trading Day in 115 YearsIBM stock crashed 25.2% on July 14, 2026, erasing $67 billion after a modest earnings miss — worse than Black Monday 1987.
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