Why did IBM drop 13%?

The selloff followed Anthropic’s claim that Claude Code can automate parts of COBOL modernization. Investors worry that faster, cheaper AI-led projects could pressure revenue and margins tied to mainframe-related software and services. That uncertainty triggered a sharp reset to the stock’s valuation and raised questions about near-term growth visibility.

Is IBM’s dividend safe after the decline?

IBM’s dividend yield is about 2.94%, with a payout ratio near 59%. Free cash flow per share of 13.12 supports coverage, but leverage is elevated and interest coverage is about 6. We think maintaining cash discipline is essential. Monitor guidance, working capital, and debt costs through the next earnings update.

What should Japan-based investors consider now?

IBM stock today trades in USD, so yen investors face FX and tax factors. Assess exposure to AI-driven COBOL modernization in Japan’s financial sector, where many COBOL systems remain. Use staged entries, watch liquidity and leverage metrics, and follow management commentary on AI services pricing and localization for Japanese clients.

What technical levels matter after the plunge?

IBM stock today is oversold with RSI 26.98. Key references include the lower Bollinger band near 227.55, the recent close at 223.35, and the 52-week low at 214.50. On strength, initial resistance sits around recent bounce zones and the 50-day average at 295.58, although that is far above current price.

Global Market Insights

IBM Stock Today: February 25 – AI COBOL Threat Spurs 13% Rout, Value Case?

ByHuzaifa Zahoor February 25, 2026February 25, 2026

IBM stock today is front and center after IBM plunged 13.2% to $223.35 as Anthropic said Claude Code can automate COBOL modernization. That puts the stock more than 20% lower year to date and well below its 50-day average. For Japan-based investors, the issue is bigger than a headline. Many local banks and insurers still run COBOL on mainframes, so any shift in spending matters. We review disruption risks, the dividend value case, and near-term levels that can guide entries or adds.