Large aircraft sales declined, IBM lowered its full-year financial forecast.

International Business Machines Corporation reported a decrease in demand for its mainframe business and subsequently lowered its full-year revenue outlook, including expectations for its software division. The company announced on Wednesday that it expects revenue to grow by 4% to 5% this year, compared to the previous estimate of over 5%. Chief Financial Officer Jim Kavanaugh said in an interview that the software division's annual sales are expected to grow by 6% to 8%. IBM stated that it will accelerate cost-saving initiatives and continue to expect to generate an additional $1 billion in free cash flow this year. Kavanaugh mentioned that this will be achieved through reducing third-party technology expenses, improving supply chain management, and lowering administrative costs. He also noted that the total number of employees at the company should remain relatively stable this year. The company's total revenue increased by about 1% to reach $17.2 billion, and the earnings per share excluding certain items were $2.93. IBM closed at $205.77 in New York, with a post-market trading increase of approximately 3%. As of Wednesday's close, the stock has fallen by 31% this year, including a 25% drop in a single day after the initial earnings estimate release.