IBM Chairman and CEO Arvind Krishna pushed back against fears of a prolonged technology sector downturn, disclosing that one-third of the enterprise software deals postponed during a turbulent second quarter have already returned to the company.

Speaking on "The Claman Countdown" on Thursday, Krishna attributed the temporary spending disruption to a sharp rise in semiconductor prices, which led enterprise customers to redirect budgets toward physical server hardware rather than software.

"One-third of all the deals that fell out of the second quarter have already come back," Krishna said. "So, that gives us a signal, maybe not proof yet, but a signal that that was indeed just a deferral for a few weeks, not a destruction."

His remarks came one day after IBM trimmed its full-year revenue growth outlook from above 5% to a range of 4% to 5%. Earlier in July, the company had issued an earnings warning following a spike of roughly 60% in chip hardware costs. According to Krishna, the price surge prompted numerous Fortune 100 clients to expedite physical hardware purchases, squeezing their software budgets and causing many to defer IBM software orders. The resulting uncertainty contributed to a sell-off in IBM shares.

"When those are going up at 60% year over year, people are worried, and that's the classic inflation that if it's going to go up that much, I need to buy that now," Krishna said. "And, so, I redirect my CapEx to that side."

The distinction between delayed and canceled spending is central to IBM's explanation. Enterprise software sales can shift between quarters when large customers reprioritize budgets, but the pace at which deferred orders return will be important for assessing whether the second-quarter shortfall was a temporary timing issue or a broader demand problem.

Krishna stressed that the pullback was temporary and that clients were working through their delayed software orders. He also indicated that IBM is adjusting its sales approach to reduce future vulnerability to similar disruptions.

Approximately 80% of IBM's software revenue is derived from subscription contracts, while the remaining 20% comes from upfront purchases—the segment most affected by the recent client deferrals. Subscription revenue typically gives enterprise software companies more recurring visibility, while upfront transactions can be more exposed to customer budget timing and capital allocation decisions.

"We have to focus more on growing the 80 and not depend on the 20% growing fast," Krishna said.

Beyond software, Krishna highlighted artificial intelligence as a continued growth driver for the company and emphasized IBM's expanding commitment to quantum computing. He pointed to IBM's recent acquisition of quantum research lab HRL Laboratories as a strategic move to position the company at the forefront of an emerging market.

"We think quantum is an incredibly important technology for national security but also for economic advantage," Krishna said. "So, now we're sort of increasing our total investment and increasing the different alternate technologies that we have inside our portfolio, which only then increases the chances that we are one of the winners and are quantified."

Krishna raised his outlook for the technology's long-term commercial potential, stating: "I think I'm now going to up my estimate to where quantum by the end of the next decade is likely going to be a trillion-dollar impact on the industry."