# Michael Burry shares which earnings reports he's watching to determine if IBM's bad quarter is an industry-wide issue Burry is monitoring specific companies' earnings to see if IBM's problems reflect a broader sector trend. - **Source:** [Business Insider](https://www.businessinsider.com) - **Published:** 2026-07-15 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/6e086773-677b-461a-8641-f18bcf82bc7a ## IBM's quarterly performance raised concerns IBM's recent earnings miss led to its worst trading day ever, with CEO Arvind Krishna admitting the company struggled to adapt to the AI-driven market. Investors like Michael Burry are questioning whether this is an IBM-specific issue or a sign of wider software sector challenges. ## Key companies on Burry's watchlist Burry identified SAP, ServiceNow, Microsoft, Wipro, and Infosys as critical companies to watch in coming weeks. Their earnings reports will reveal whether clients are temporarily shifting or permanently redirecting IT spending away from providers like IBM. ## Cybersecurity firms also under scrutiny Burry highlighted that cybersecurity players like Checkpoint, Fortinet, and Palo Alto Networks could validate or contradict IBM's claim that security concerns diverted customer spending. Their revenue growth (or lack thereof) will provide crucial context. ## AI investments and IBM's future Burry suggested that if other companies confirm IBM's slow AI adaptation, it may indicate sector-wide AI hype. However, if reports show clients are merely delaying rather than abandoning IBM, the company's long-term value proposition might remain intact. ## Questioning Wall Street's overreaction Burry characterized IBM's stock plunge as potentially exaggerated, pending confirmation from peer companies. Investors are weighing whether this is a buying opportunity if sector-wide weakness fails to materialize in upcoming reports. ## Pivotal earnings season for investors The next wave of software and IT consulting earnings reports will provide definitive answers about whether IBM's struggles are isolated. Burry's analysis cautions investors against panic until this broader dataset becomes available. ## Sources covering this story - https://www.businessinsider.com/michael-burry-ibm-stock-down-ai-software-stocks-msft-wipro-2026-7 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._