{"id":64763,"date":"2026-07-14T08:08:29","date_gmt":"2026-07-14T12:08:29","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/goldman-sachs-crushes-estimates-as-ibm-warning-drags-down-tech-sector\/64763\/"},"modified":"2026-07-14T08:08:29","modified_gmt":"2026-07-14T12:08:29","slug":"goldman-sachs-crushes-estimates-as-ibm-warning-drags-down-tech-sector","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/goldman-sachs-crushes-estimates-as-ibm-warning-drags-down-tech-sector\/64763\/","title":{"rendered":"Goldman Sachs Crushes Estimates as IBM Warning Drags Down Tech Sector"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Goldman Sachs (<a href=\"\/stock\/GS\">GS<\/a>)<\/strong> reported a massive Q2 earnings beat with an <strong>EPS of $20.98<\/strong>, far exceeding the <strong>$14.10<\/strong> analyst estimate, driven by a <strong>55% surge<\/strong> in investment banking fees.<\/li>\n<li><strong>IBM (<a href=\"\/stock\/IBM\">IBM<\/a>)<\/strong> shares plummeted over <strong>20%<\/strong> in <a href=\"https:\/\/stockmarketwatch.com\/movers\/premarket\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">premarket<\/a> trading after issuing a preliminary revenue warning, dragging <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong> and other software giants down by <strong>3% or more<\/strong>.<\/li>\n<li><strong>HCA Healthcare (<a href=\"\/stock\/HCA\">HCA<\/a>)<\/strong> released preliminary Q2 results showing <strong>$20.23 billion<\/strong> in revenue, though it slightly lowered the top end of its full-year EPS guidance.<\/li>\n<li>Diplomatic efforts to reopen the <strong>Strait of Hormuz<\/strong> intensified, with the <strong>UK<\/strong> and <strong>Oman<\/strong> advocating for a fee-free restoration of navigation following recent regional tensions.<\/li>\n<\/ul>\n<h2>Goldman Sachs Delivers Record Q2 Performance<\/h2>\n<p>Goldman Sachs (<a href=\"\/stock\/GS\">GS<\/a>) reported stellar second-quarter 2026 results, fueled by a resurgence in dealmaking and its lead role in the historic <strong>SpaceX IPO<\/strong>. The bank posted <strong>net revenues of $20.34 billion<\/strong>, a <strong>39.5% year-over-year increase<\/strong>, and an <strong>EPS of $20.98<\/strong>, crushing the consensus estimate of <strong>$14.54<\/strong>.<\/p>\n<p>The performance was anchored by the <strong>Global Banking &amp; Markets<\/strong> division, where investment banking fees jumped <strong>55%<\/strong> to <strong>$3.40 billion<\/strong>. Equities sales and trading revenue also saw a significant boost, rising <strong>72%<\/strong> compared to the previous year to reach <strong>$7.42 billion<\/strong>, as market volatility and robust capital markets activity provided a favorable backdrop for the firm\u2019s trading desks.<\/p>\n<h2>IBM Revenue Warning Triggers Software Sell-Off<\/h2>\n<p>The technology sector faced sharp downward pressure Tuesday morning after International Business Machines (<a href=\"\/stock\/IBM\">IBM<\/a>) issued a preliminary Q2 revenue warning. IBM reported expected revenue of <strong>$17.2 billion<\/strong>, missing the <strong>$17.85 billion<\/strong> estimate, and saw its shares crash more than <strong>20%<\/strong> in <a href=\"https:\/\/stockmarketwatch.com\/movers\/premarket\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">premarket<\/a> trading. CEO Arvind Krishna cited a &quot;capex reprioritization&quot; where clients shifted spending toward servers and storage over software and consulting.<\/p>\n<p>This warning sent ripples through the enterprise software space, with <a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>) shares falling <strong>2.8%<\/strong> in premarket action. Other major players including Salesforce (<a href=\"\/stock\/CRM\">CRM<\/a>) and ServiceNow (<a href=\"\/stock\/NOW\">NOW<\/a>) also saw declines of <strong>5% to 7%<\/strong> as investors worried that IBM&#39;s results signaled a broader slowdown in corporate software spending.<\/p>\n<h2>HCA Healthcare Previews Q2 Results and Adjusts Outlook<\/h2>\n<p>HCA Healthcare (<a href=\"\/stock\/HCA\">HCA<\/a>) announced preliminary Q2 2026 revenue of approximately <strong>$20.23 billion<\/strong>, up from <strong>$18.61 billion<\/strong> a year ago. The hospital operator expects a quarterly <strong>EPS of $7.62<\/strong>, which remains subject to final accounting procedures. Despite the revenue growth, the company narrowed its full-year 2026 EPS guidance to a range of <strong>$28.70 to $30.50<\/strong>, down from its previous high-end estimate of <strong>$31.50<\/strong>.<\/p>\n<h2>Geopolitical Tensions: Push for Free Passage in Hormuz<\/h2>\n<p>On the geopolitical front, the <strong>UK government<\/strong> and <strong>Oman&#39;s Foreign Ministry<\/strong> issued statements regarding the ongoing crisis in the <strong>Strait of Hormuz<\/strong>. The UK emphasized that the vital maritime corridor should reopen without the imposition of <strong>tolls or charges<\/strong>, countering reports that Iran might seek transit fees. Oman reaffirmed its role as a neutral mediator, stating it continues &quot;transparent and neutral cooperation&quot; with all parties to restore the freedom of navigation in the region.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Goldman Sachs (GS) reported a massive Q2 earnings beat with an EPS of $20.98, far exceeding the $14.10 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