Cognizant Technology Solutions

Cognizant is a major IT services provider with deep roots in maintaining and modernizing legacy COBOL systems for financial institutions, making it directly exposed to AI-driven disruption of that work. - Stock declined 6.6% on February 23; exposed to legacy modernization disruption

An estimated 220 billion lines of COBOL code still run in production every day, processing 95% of ATM transactions and roughly $3 trillion in daily commerce. For decades, understanding and modernizing that code has required large teams of specialized consultants working for months or years. On February 23, Anthropic published a playbook showing how its Claude Code tool can automate the most labor-intensive phases of that work—mapping dependencies, documenting workflows, and identifying risks across thousands of files—and IBM shares immediately fell 13.2%, their worst single-day drop in more than 25 years.

Updated 5 days ago

Global IT services company that files thousands of H-1B petitions annually, often for lower-wage positions. - Major H-1B user; sued in Disney case

On December 29, 2025, the Department of Homeland Security formally published its final rule replacing the H-1B lottery with wage-weighted selection in the Federal Register. Starting February 27, 2026, a software engineer offered $150,000 (Level IV wage) gets four entries in the pool; one offered $65,000 (Level I) gets one entry—an 8.5% selection chance versus the prior 25% random odds. The change targets fraud: 758,994 registrations competed for 85,000 slots in FY 2024, with 408,891 duplicate submissions for the same people, up 140% from the year before. Shell companies flooded the system; Disney laid off American IT staff and made them train H-1B replacements paid 40% less. On December 24, a federal judge upheld the separate $100,000 H-1B fee Trump imposed in September, rejecting a U.S. Chamber of Commerce lawsuit.

Updated Dec 29, 2025