IBM's Preliminary Earnings Release Sparks Options Chatter and Software Sentiment Comparisons

IBM's preliminary earnings release on July 22 caused a spike in implied volatility, drawing options traders' attention.
Reddit users compared IBM's recent performance to SAP's upcoming earnings, reflecting broader caution in software/AI stocks.
IBM shares fell to a 52-week low after missing Q2 revenue expectations, with mainframe sales declining 42% year-over-year.

$IBM stood out in retail-investor discussion on July 25, driven by lingering effects of its preliminary earnings release earlier in the week. The stock's implied volatility remained elevated days after the announcement, prompting questions on r/options about why IV hadn't dropped off as expected.

On r/wallstreetbets, two posts about SAP's upcoming earnings used

$IBM as a benchmark for the current shaky sentiment in software and AI stocks. A German investor asked whether SAP could still surprise to the upside, noting the mood "feels pretty shaky right now, kind of like what we’ve recently seen with IBM."

IBM

The options discussion centered on

$IBM's IV behavior. A user on r/options noted that IBM's IV shot up after the preliminary earnings came out on July 22, and remained elevated even after the announcement, unlike SMCI's IV which didn't move on its pre-earnings release. The user questioned why IBM's IV stayed high, linking to option statistics data.

Meanwhile, a Motley Fool article published on July 25 compared

$IBM's revenue growth to Figma's, highlighting that IBM missed Q2 2026 revenue expectations and saw its Z Systems mainframe sales decline 42% year-over-year. The stock hit a 52-week low, adding to the bearish narrative.

The combination of elevated options activity, comparisons to SAP, and negative news context made

$IBM a focal point for retail traders seeking to understand the broader software/AI landscape.

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