The company experienced its sharpest single-day stock drop in over 25 years following the launch of a competitor's AI tool, Claude Code, which automates the modernization of legacy COBOL systems. This development sparked significant investor concern over the potential disruption to the company's core mainframe and legacy consulting services. In response, the company is leaning on its existing AI roadmap, deepening partnerships, and highlighting recent federal contracts to defend this key revenue pillar.