On February 19, 2026, Anthropic unveiled Claude Code Security, a new capability integrated into its Claude Code platform, and cybersecurity stock prices crashed in the hours following the announcement. 

Anthropic’s announcement describes a code-focused capability that scans codebases for vulnerabilities and suggests patches for human review in a limited research preview only. By contrast, most third-party cybersecurity products perform other tasks such as runtime detection, endpoint visibility, identity controls, or incident response workflows, which are not supported by Anthropic yet.

In spite of this, the stock-market reaction was broad and immediate. Bloomberg reported a selloff across multiple cybersecurity stocks after the announcement, and Investors.com described a similar move across cyber and software-development stocks tied to fears that AI vendors are moving deeper into workflows historically owned by established software companies.

Was this a market over-reaction to another AI announcement?

Will AI replace cybersecurity vendors and their products in the future?

How should CISOs make sense of this new development in AI?

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