1221 ET - IBM's 2Q profit warning and subsequent guidance cut shouldn't be taken by investors as a sign that the company is a casualty to AI, CEO Arvind Krishna tells CNBC, adding that only around 2% of the company's software portfolio is at risk of displacement. IBM's weak quarter was the result of clients letting deals slip to focus their spending on supply-constrained components for AI infrastructure, but the company expects to recover some amount of that business, Krishna says. The AI software debate is separate, he adds, and though maybe 2% of IBM software can be easily replaced with AI, much of their portfolio will facilitate enterprises' AI journeys. "That 2%, I think, will likely get impacted," he says, but AI will be a tailwind for the rest of the business. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

July 23, 2026 12:21 ET (16:21 GMT)

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