IBM reported a disappointing earnings quarter, with its mainframe business down 42% and overall revenue falling short of Wall Street expectations.CEO Arvind Krishna warned investors that the decline was temporary, attributing it to customers shifting budgets toward other hardware due to rising costs from the AI boom.While the company’s stock plummeted 25%, Krishna emphasized that mainframes remain critical for enterprise clients despite the current dip.The CFO noted that IBM earns $3 in software revenue for every $1 from mainframe sales, highlighting the business's importance.However, with hardware prices soaring due to AI infrastructure demands, some customers opted for alternative solutions this quarter.Krishna remains confident that long-term demand for mainframes will recover, as clients still rely on their robust systems for critical operations.