ANTHROPIC unveiled a new security capability for its Claude LLM, adding Claude Code Security to Claude Code, which is currently in limited preview for Enterprise and Team customers and is designed to scan code for vulnerabilities and suggest patches that developers can review before applying. The announcement triggered a broad market reaction, with the stocks of major cybersecurity companies plunging—some by more than 10%—erasing billions in market capitalisation.
Stocks named included CrowdStrike, Cloudflare, Okta, Zscaler, Tenable, Sailpoint, SentinelOne, Fortinet, JFrog, and Palo Alto Networks. By 25 February 2026, the downturn had prompted partial recoveries for some firms, while others remained lower at Tuesday’s close. According to CNBC, Palo Alto Networks CEO Nikesh Arora said AI will not replace cybersecurity products anytime soon, emphasising that AI should be viewed as an ally alongside existing solutions.
Industry voices argued that Claude Code Security is meant to complement, not replace, current security tools, potentially changing how security teams stitch together posture reviews, identity audits, and cross-tool investigations.