Anthropic AI Automation Pressures IT Revenues; IT Stocks Slide on February 5

February 5 — Analysts warn that Anthropic’s and Palantir’s AI automation initiatives could structurally compress IT application services, which account for 40–70% of revenue for many firms, threatening earnings and valuations. Global IT stocks fell sharply this week, with India’s software exporters down 0.7% on Thursday after a 6% plunge on their worst session in nearly six years. Jefferies said the sector faces “more pain ahead,” while JPMorgan and Kotak Institutional Equities cautioned against overblown selloffs, noting that full displacement of mission-critical software is unlikely.