IBM stock dives after Anthropic points out AI can rewrite COBOL fast
The Register
February 23, 2026
AI-Generated Deep Dive Summary
IBM’s stock price dropped significantly on Monday after investors reacted to a blog post from Anthropic, which highlighted how its AI-powered tools could rapidly refactor COBOL-based applications. The post emphasized that COBOL remains widely used in critical sectors like government, finance, and aviation, but finding skilled programmers to maintain these systems is increasingly challenging. Anthropic suggested using AI, specifically its Claude Code tool, to assess risks and streamline the migration process, a concept IBM itself had previously explored with its Watsonx Code Assistant for Z.
The article notes that while COBOL’s role in modern IT infrastructure is often underappreciated, its legacy systems are still vital. However, the cost of maintaining these systems and the lack of skilled professionals have made organizations hesitant to migrate away from COBOL. This reluctance has created a unique opportunity for AI tools like Claude Code, which can potentially reduce the risks and costs associated with refactoring outdated code.
The situation is particularly relevant for tech readers as it underscores the ongoing challenges of modernizing legacy systems. While AI tools like Claude Code offer promising solutions, the article highlights that the process remains complex and risky. IBM’s recent success in its mainframe business, driven by AI-powered conversion tools, suggests that such technologies could play a pivotal role in addressing these challenges.
Ultimately, Anthropic’s post
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Originally published on The Register on 2/23/2026