The European Union has filed a lawsuit against tech contractors IBM, Atos, and Leonardo over delays and rising costs in developing the border platform.

IBM stock saw its sharpest one-day decline in history after the company reported a shortfall in revenue and earnings. The company noted a shift in client spending toward AI-focused infrastructure and delayed deal closures.

IBM shares declined after the company reported that enterprise clients are prioritizing data-center infrastructure investments over software budgets. The shift caused a revenue shortfall and triggered a broader selloff across the software industry.