IBM's software business, which has attracted much attention, did not meet expectations, disappointing investors.

International Business Machines Corporation announced that its highly anticipated software division's sales were weaker than expected, disappointing investors who had been increasingly optimistic about this business. The software department's sales in the second quarter increased by 10% to $7.39 billion, slightly lower than analysts' average expectations of $7.49 billion. The company's consulting business, which has been performing poorly, saw a 3% increase in revenue to $5.31 billion. Investors are becoming more optimistic about IBM's software business and the future growth potential from artificial intelligence tools and quantum computing. The company's management has referred to software and services as the road to revival since the 1990s. However, it wasn't until recently, under the leadership of CEO Arvind Krishna, that IBM truly started on this path. The stock closed at $282.01 in New York, falling approximately 3.5% in after-hours trading. The stock has risen 28% so far this year, outperforming many tech stocks. Overall, the company stated in a statement on Wednesday that revenue increased by 8% to $17 billion as of June 30. Analysts' average expectations were $16.6 billion.