IBM CEO Sees Quantum Earnings Impact by 2028-29

Krishna made the comments Thursday on CNBC's Mad Money, alongside new research with startup AlgorithmQ that he said demonstrates a quantum computing advantage. The companies said a quantum computer can solve certain computational problems more efficiently than today's most advanced classical computers while also verifying the results.

Krishna said IBM's quantum computers have already uncovered behaviors in materials that researchers could not observe with conventional computing. Those insights, he said, could eventually lead to better batteries, more advanced materials, improved fusion energy, and smarter medicines.

The remarks come as IBM faces investor concerns after its July 14 earnings update triggered a 25% single-day stock decline, the worst on record. The company said some customers had delayed capital spending projects, raising questions about near-term demand and the potential long-term impact of AI on its software business.

Krishna said those projects were postponed, not canceled, noting that about 40% had already closed within three to four weeks. "That's a good signal that it is a deferral, not a destruction," he said.

Earlier this year, the Trump administration announced plans to take $2 billion in equity stakes across nine quantum computing companies, including a new IBM venture. The Department of Commerce said IBM would receive $1 billion to establish a company dedicated to manufacturing chips for quantum computers, part of a broader effort to counter China's advances in critical technologies.