The initial report came from a post on X by The Kobeissi Letter, highlighting the rapidly evolving nature of today’s tech landscape. Following this announcement, shares of Accenture and Cognizant Technology Solutions also saw a downturn. These stocks were already under pressure owing to a overall decline in the tech sector that day.
IBM Stock Price Dips After AI Announcement
IBM, Accenture, and Cognizant generate substantial revenue by assisting businesses in modernizing outdated computer systems written in COBOL, according to a report from Investing.com. A new AI tool from Anthropic can automate the initial phases of updating COBOL systems, a task usually requiring large consulting teams. This AI is capable of swiftly scanning thousands of lines of legacy code, mapping interconnections, clarifying workflows, and identifying potential risks.
Such projects traditionally demand extensive time and expertise from human specialists. COBOL remains crucial today, managing around 95% of ATM transactions in the United States. Countless billions of lines of COBOL code continue to operate daily in financial institutions, airlines, and government sectors. However, the number of programmers proficient in COBOL is dwindling, mainly due to the retirement of many original developers.
AI Tool Accelerates System Modernization
Anthropic asserts that its AI tool can expedite the modernization of these systems from years to just months. The technology can identify program entry points, monitor code execution, trace data movements, and document file connections, as noted by Investing.com.
The company explained that previous modernization efforts often stalled due to high costs associated with understanding legacy code versus simply rewriting it. Anthropic’s AI tool changes this dynamic by significantly enhancing the speed and affordability of code analysis. Along with this announcement, the firm released a “Code Modernization Playbook” on February 23, 2026.
FAQs
Q1. Why did IBM’s stock suddenly drop?
The decline in IBM’s stock followed the announcement from Anthropic regarding a new AI tool designed to quickly update legacy COBOL computer systems, potentially reducing the demand for consulting services.
Q2. What is the function of Anthropic’s new AI tool?
This AI tool assists companies in understanding and modernizing outdated COBOL code at an accelerated pace by automatically analyzing, mapping, and documenting the system.
