Shares of International Business Machines Corp. (NYSE:IBM - News), the world's largest computer services supplier, fell as analysts cut their revenue and earnings estimates in the wake of the EDS' shortfall and put pressure on broader markets.

IBM, which is a significant component of the Dow Jones Industrials index (CBOT:^DJI - News), lost more than $4.00 in preopen trade, falling to $65.20, on the New York Stock Exchange, while EDS continued to trade at levels one-third below its Wednesday close of $36.46 -- its lowest level in more than a decade.

"We believe the concerns we had over IBM's near-term demand picture ... persist," J.P Morgan analyst Bill Shope said in a research note to clients on Thursday.

"Our checks and recent preannouncements suggest that IT spending may be deteriorating further," he added, referring to a spate of profit warnings from other big companies in the information technology sector.

Computer Sciences Corp. (NYSE:CSC - News), the world's No. 3 services supplier, tumbled more than 15 percent, to trade at $29.80 ahead of the regular trading on the NYSE. KPMG Consulting (NasdaqNM:KCIN - News) traded down around $8.70 from its $9.40 close on Wednesday, before EDS issued its dire warning.

European computer services stocks swooned on the news, including France's Atos Origin (Paris:SEGN.PA - News) which lost nearly 12 percent after it was cut to "sell" by a WestLB Panmure analyst citing EDS' warning.

Cap Gemini (Paris:CAPP.PA - News) was down almost 10 percent. Getronics (Amsterdam:GVKN.AS - News) of the Netherlands lost more than 7 percent and Finland's TietoEnator(TIE1V.HE) gave up 5 percent.

After the markets closed on Wednesday, EDS said a chronic slowdown in spending by its customers and a lack of new services contracts would shave more than 62 cents a share of its third-quarter earnings estimate of 74 cents.