IBM stock has surged over the past year and recently surpassed its decade-old all-time high. It makes sense, then, that investors were expecting better results from the tech giant. While IBM's revenue miss was disappointing, the good news for long-term investors is that there's nothing to worry about.

IBM’s mixed results, disclosed Wednesday evening, sent the stock sharply down, but analysts continue to recommend the shares.Hopes have been high that artificial intelligence will boost IBM’s profit and share price but its quarterly earnings report showed revenue was slightly lower than expected,

IBM shares are dropping 5% in premarket trading Thursday, weighing on Dow Jones Industrial Average futures, after its quarterly revenue fell short of Wall Street estimates.