** Shares in IBM IBM.N were down 0.3% on Wednesday ahead of Q2 results due after market close after co last week pre-reported results and warned it has fallen behind in AI trends

** The stock tumbled 25% on July 14, after co said it now expects Q2 adj EPS of $2.93 vs Street estimates of $3.02 and rev of $17.2 billion vs analysts' estimates of $17.86 billion, according to data compiled by LSEG at the time

** IBM, which provides technology products and services, said it had "faltered" in keeping pace with a shift in corporate spending from software to data-center infrastructure, in the clearest sign yet of AI's growing toll on the sector

** In yr-ago qtr, IBM reported EPS of $2.80 on erv of $16.98 bln year-ago, per LSEG

** Shares last traded at $209.84 vs median PT of $256.22, down from $287.09 month ago, according to LSEG, which shows 27 analyst ratings: 7 'strong buy,' 7 'buy,' 11 'hold,' and 2 'sell'

** YTD the stock is down ~29% vs ~9% gain for the Dow industrials .DJI and a 17% advance for the S&P 500 technology index .SPLRCT

** Shares in broader software sector have suffered due to investor anxiety about AI's impact on demand, with the S&P 500 Software & Services index .SPLRCIS down ~20% YTD

** IBM options imply a 6.3% swing for the shares, in either direction, by Friday; that is in line with stock's 8-qtr post earnings 1-day avg move of 6.5%, according to Trade Alert