Anthropic AI Disrupts IBM COBOL Business
Analysis based on 7 articles · First reported Feb 23, 2026 · Last updated Feb 24, 2026
The market experienced significant disruption in the software and IT sectors, with shares of IBM plunging due to fears that Anthropic's AI tools will diminish demand for legacy products and services. This event also triggered a broader sell-off in cybersecurity and other IT stocks, reflecting investor concerns about AI's impact on growth prospects, margins, and pricing power across the industry.
Shares of IBM recorded their steepest daily drop in over 25 years after AI startup Anthropic announced its Claude Code tool could modernize COBOL, a programming language widely used on IBM mainframes. This development threatens a significant portion of IBM's legacy mainframe business, which relies on COBOL for critical systems in banking, insurance, and government. Anthropic's AI tools are expected to automate the complex and time-consuming process of COBOL modernization, potentially reducing the need for extensive consulting services. The news also triggered a broader sell-off in software and cybersecurity stocks, including CrowdStrike, Datadog, Infosys, HCLTech, Tata Consultancy Services, Coforge, and Persistent Systems, as investors fear AI-led disruption will negatively impact the growth, margins, and pricing power of legacy companies. This event highlights the growing market anxiety surrounding the rapid advancements in AI and its potential to reshape various industries.
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