IBM CEO Arvind Krishna took full blame for the consulting revenue miss that sent shares down 7% after hours. Tech leaders said his candor offers a lesson for handling bad news.
IBM CEO Arvind Krishna shouldered full responsibility for the company's disappointing quarterly results on Tuesday, a move that current and former tech leaders said offers a lesson in owning bad news.
Krishna, widely credited with turning IBM around after years of stagnation, didn't deflect blame to external factors or market conditions. He told analysts the miss was on him, according to people familiar with the call. The admission came after IBM's consulting revenue fell short of expectations, dragging the stock down 7% in after-hours trading.
The CEO's candor stands in contrast to an industry where executives often blame supply chains, currency swings, or macro uncertainty. Krishna's approach signals a different leadership style, one that prioritizes credibility over spin, the tech leaders said.
IBM's Alpha Score sits at 41 out of 100, a Mixed rating, reflecting the tension between the company's turnaround progress and the latest stumble. The IBM stock page shows the technology giant facing a test of investor confidence heading into the next quarter.
Krishna has a track record of delivering on his promises. He streamlined IBM's portfolio and pushed into hybrid cloud and AI. The consulting miss raises questions about whether the recovery is losing steam. The next earnings call will show whether the CEO's honesty buys him the patience he needs.
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