IBM Share Price Crashes 13% What Just Happened?

IBM share price fell sharply to $223.35 on February 23, 2026. The stock dropped 13.15% in a single session. It closed lower after opening at $254.37 and hitting a high of $255.19. Investors were clearly selling through the day.

Massive One-Day Fall Explained

A 13% fall in a large US tech stock is not small. The stock even touched a low of $220.72 during trading. That is very close to its 52-week low of $214.50.

Interestingly, after-hours trading showed a slight recovery. The price moved up to $225.46, gaining nearly 1%. That suggests some bargain buying stepped in.

But Earnings Were Strong, Right?

Here is what makes it confusing. IBM’s Q4 2025 results were actually solid. Revenue came in at $1.97K crore equivalent, showing 12.15% year-on-year growth.

The company posted a 5.30% EPS beat. Revenue also beat estimates by 2.45%. Normally, such numbers support a stock.

So why the fall? Markets sometimes react to future guidance more than past results. Even small caution in outlook can trigger heavy selling.

Key Financial Numbers to Know

IBM’s market cap stands around $20.88K crore equivalent. The P/E ratio is 18.06, which is moderate compared to many tech peers.

The 52-week high is $324.90. That means the stock has corrected significantly from peak levels. Dividend yield remains attractive at 3.01%, with a quarterly payout of $1.68.

For income-focused investors, that dividend still looks steady.

How Does It Compare to Other Tech Giants?

While IBM fell, stocks like Microsoft, NVIDIA, Oracle, and Amazon traded in positive territory recently. That contrast makes IBM’s drop stand out more.

Sometimes rotation happens in the market. Money shifts quickly between sectors and stocks.

Should Investors Panic?

Sharp falls create fear. But they also create opportunity, depending on your horizon.

IBM still shows revenue growth. Earnings beat expectations. Dividend remains strong.

Short term volatility is loud. Long term performance is quieter. Investors now wait to see if this fall continues or stabilizes in coming sessions.