The company’s pretax income margin is projected to contract by 90 basis points to 14.4%, a result of the operational friction that stalled major deals. While overall revenue is forecast to rise 1% to $17.2 billion, the underlying segments show a stark divide: software revenue climbed 5%, yet infrastructure revenue dropped 7%, and consulting remained flat.

Before the opening bell, the stock tumbled to $240.18. This reversal marks a sharp pivot for a company that had seen its shares gain 21% over the previous three months, despite a modest 2% decline earlier this year.