Financial and tech consulting giants IBM, Accenture, and Cognizant suffered sharp declines on Monday amid investor fears that Anthropic’s new AI tool, Claude Code, could automate lucrative COBOL modernization projects. COBOL, a 1960s-era language powering 95% of U.S. ATM transactions and critical financial systems, has long fueled consulting revenue, but Anthropic claims its tool can slash the time and cost of upgrades from months or years to quarters.
Anthropic’s Claude Code: The Event Trigger
Anthropic launched Claude Code on February 23, 2026, as an extension of its Claude AI models tailored for enterprise code modernization. The tool automates mapping dependencies across thousands of lines of COBOL code, documenting workflows, tracing execution paths, identifying risks, and mapping data flows—tasks that traditionally require large teams of analysts working for months.
Anthropic highlighted in its announcement and accompanying “Code Modernization Playbook” that legacy projects often stalled because analysis costs exceeded rewriting the code, but AI flips this equation by accelerating discovery and assessment phases. This follows prior Anthropic releases that rattled cybersecurity and software stocks, amplifying broader anxiety over AI automating white-collar analysis work.
Stock Price Impacts: A Brutal Day for Consulting Stocks
The market reaction was swift and severe, with IBM leading the rout as investors repriced the threat to its mainframe and services business.
| Company | Decline | Notes |
|---|---|---|
| IBM | 13–13.3% | Worst day since 2000; erased ~$28–31B market cap, closed near $223; down 27% in February |
| Accenture | Sharp decline (reports vary ~5–10%) | Hit 52-week lows near $215; down 40–42% over past year on IT services fears |
| Cognizant | Sharp decline | Exposed to COBOL consulting; broader tech weakness amplified the drop |
IBM became the S&P 500’s worst performer that day, reflecting its heavy reliance on legacy system support in banking, government, and airlines.
Broader Context: AI’s Onslaught on Consulting and IT Services
These declines build on a tough year for consulting firms, with Accenture already down 40–42% amid ongoing fears of AI disruption in IT services and legacy upgrades. Analysts point to sector undervaluation but warn of persistent weakness as AI tools like Claude Code erode high-margin, labor-intensive projects.
COBOL’s persistence in financial infrastructure—handling Social Security, banking networks, and ATMs—makes modernization a multi-billion-dollar opportunity, now under AI threat. This episode underscores wider market jitters about AI automating white-collar roles in code analysis, compliance, and system mapping.
Investor Implications: Navigating AI-Driven Volatility
For stock investors, Anthropic’s launch highlights accelerating AI disruption in enterprise tech, where incumbents like IBM face both existential risks and adaptation opportunities. While short-term fear drove the plunge, some see long-term value if firms integrate AI into their offerings.
Market volatility from such events often spills into risk assets like cryptocurrencies, prompting traders to seek diversified exposure.
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