IBM shares fell 9% in intraday trading due to lower-than-expected software revenue growth in their second-quarter earnings report. Despite this, shares are still up 15% since the beginning of the year. Analysts have mixed reactions, with UBS maintaining a “sell” rating and Bank of America lowering their price target but remaining bullish on IBM’s trajectory.

IBM reported $16.98 billion in revenue, up 8% year-over-year, with adjusted earnings per share of $2.80, beating estimates. However, software revenue came in slightly below analyst consensus at $7.39 billion. CEO Arvind Krishna cited geopolitical tensions and constrained US federal spending, but expects no long-term headwinds.

UBS analysts noted a slowdown in IBM’s organic software revenue growth to 5% in the quarter, down from 6% and 8% in previous quarters. They maintained a “sell” rating but raised their price target. Bank of America lowered their price target but remain bullish on IBM’s trajectory. Wedbush analysts believe IBM is well-positioned for AI applications and would buy on any weakness in the stock.

Read more at Yahoo Finance: IBM Stock Slips on Slowing Software Sales Growth, But Analysts Stay Bullish