ibm stock: IBM stock falls 10% after Anthropic launches AI tool to modernize COBOL code
The news was first highlighted in a post on X by The Kobeissi Letter, which was said to show how significant and rapidly changing the current era of technology is. Following this announcement, shares of Accenture and Cognizant Technology Solutions also fell. These companies were already trading lower because the overall tech sector was weak that day.
IBM stock prices fall after AI news
IBM, Accenture and Cognizant are making a lot of money helping businesses update very old computer systems written in COBOL, Investing.com reports. Anthropic’s new AI tool can automate the initial stages of updating COBOL systems, a task that normally requires large consulting teams. AI can quickly scan thousands of lines of legacy code, map how they are connected, describe workflows, and find risks.
This type of study typically takes months for human experts to complete. COBOL is still very important today; It processes approximately 95% of ATM transactions in the United States. Hundreds of billions of lines of COBOL code are still run every day in banks, airlines, and government systems. But the number of programmers who understand COBOL is declining, as many of the original developers have retired.
AI tool makes work much faster
Anthropic said its AI tool could help modernize these systems in months rather than years. The tool can find program entry points, track how code runs, map data movements, and track document links between files, as noted by Investing.com.
The company explained that modernization projects in the past have been stalled because understanding legacy code is more expensive than rewriting it. Artificial intelligence is now changing this by making code analysis much faster and cheaper, Anthropic said. The company released a “Code Modernization Playbook” on February 23, 2026, along with the announcement.
FAQ
Q1. Why did IBM shares suddenly fall?IBM shares fell after Anthropic announced a new AI tool that could quickly update legacy COBOL computer systems and reduce the need for consulting services.
Q2. What does Anthropic’s new artificial intelligence tool do?
The AI tool helps companies understand and modernize legacy COBOL code much faster by automatically analyzing, mapping, and documenting the system.
