IBM Contracts Affected by DOGE Cost-Cutting Initiative, Shares Dip

International Business Machines Corp. (IBM) experienced a stock drop following the disclosure of 15 U.S. federal contracts valued at approximately $100 million being canceled or paused under the Trump administration’s Department of Government Efficiency (DOGE) cost-cutting initiative. This setback occurred alongside IBM’s solid first-quarter results, including exceeding earnings estimates and providing rare second-quarter revenue guidance for a range of $16.4 billion to $16.8 billion.