What is Claude Code and why did it hit IBM stock?

Claude Code is Anthropic’s coding tool that can automate key steps in COBOL modernization. Investors worry it shortens projects and reduces services revenue tied to legacy systems. That fear drove a sharp one-day drop and has kept sentiment weak as markets gauge how fast enterprises adopt it.

Is IBM stock a buy after the 13% drop?

It depends on risk tolerance. Technicals are near oversold, the dividend yield is about 2.82%, and Street views are mixed (12 Buy, 6 Hold, 5 Sell). Many investors may wait for April earnings and signs of stabilizing demand before adding, or use small tranches to manage volatility.

How could COBOL modernization impact IBM’s revenue?

If automation from tools like Claude Code reduces manual effort, consulting hours and pricing could fall. Offsetting factors include verification needs, compliance, and integration work that still require people. The net effect will hinge on enterprise adoption speed, IBM partnerships, and how the company repositions services.

What should Singapore investors consider with USD exposure?

Dividends and price moves are in USD, so SGD returns depend on FX rates and broker fees. Consider keeping USD cash to reduce conversion costs, or use SGD-hedged instruments where available. Note US trading hours will mean overnight moves in Singapore, which can affect execution and risk control.

When is IBM’s next earnings report?

IBM is scheduled to report on 22 April 2026. Investors should focus on commentary around mainframe demand, consulting margins, and any customer updates related to modernization projects. Guidance on services pipelines and AI-related productivity will be key for near-term sentiment and valuation.

Global Market Insights

IBM Stock Today: February 26 – Claude Code Threat Hits COBOL

ByHuzaifa Zahoor February 26, 2026

Claude Code is in focus after Anthropic said the tool can automate key steps in COBOL modernization. Shares of IBM sank 13% on the headline and sit more than 24% lower year to date. This matters because mainframe and modernization services are a key IBM profit stream. For Singapore investors, the question is whether this is a short-term shock or a lasting shift in client spending. We review the threat, current valuation, technical picture, and practical next steps.