IT stocks witnessed sharp losses on Friday, April 10, with the Nifty IT index crashing almost 2% after Anthropic introduced a preview of its new model, Mythos, which is being positioned as a significant leap over earlier models such as Claude Opus on coding and security benchmarks. Meanwhile, TCS logging its first annual dollar revenue decline since listing, despite Q4 recovery, also dampening the sentiment.
Meanwhile, the Indian stock market opened over 0.5% higher, following gains in global equities, despite concerns over the fragile two-week US-Iran ceasefire deal.
Almost all Nifty IT constituents were in the red. Mphasis was the top dragger, down around 2.5%, followed by LTIMindtree, Infosys, TCS, and Tech Mahindra, declining around 3% each.
Instead of a full-scale public rollout, the company has opted for a controlled deployment through Project Glasswing, Anthropic’s most advanced cybersecurity-focused model, granting access to a closed group of partners including Amazon Web Services, Apple, Broadcom, Google, JPMorgan Chase, Microsoft and NVIDIA.
The Mythos model is being positioned as highly advanced in identifying and fixing cybersecurity vulnerabilities, with capabilities that reportedly outperform both human experts and existing automated tools. The system is also capable of identifying and exploiting vulnerabilities across major operating systems and web browsers when directed by users, highlighting both its potential and associated risks.
At its core, Mythos is a next-generation AI system focused on cybersecurity and deep code analysis.
TCS Q4 Results 2026
Meanwhile, Tata Consultancy Services (TCS) on Thursday, April 9, reported a 0.5% decline in full-year revenue in dollar terms to $30.08 billion, alongside a 3.5% rise in net profit. In the fourth quarter, revenue grew 1.5% sequentially to $7.62 billion, indicating a mild pickup in momentum toward the end of the year. Much of the annual decline was driven by weakness in its India business, whose revenue fell 32% during the period.
The IT major posted a 12.2% year-on-year (YoY) rise in consolidated profit for the January–March quarter of the previous financial year (Q4FY26) at ₹13,718 crore, compared with ₹12,224 crore in the same quarter last year, according to its exchange filing.
Consolidated revenue from operations for the quarter under review rose 9.6% YoY to ₹70,698 crore from ₹64,479 crore in Q4FY25.
“We are pleased to report the third consecutive quarter of sequential growth, supported by three mega deals and a $12 billion TCV, underscoring the strength of our five-pillar strategy and our AI-led positioning across services,” said K Krithivasan, Chief Executive Officer and Managing Director, TCS.
Impact on IT services
Amid the latest advancements in AI capabilities, analysts believe the evolution of models like Mythos could have meaningful implications for IT services and enterprise adoption trends.
According to Motilal Oswal Financial Services, “We see this as a meaningful development. It builds on Anthropic’s recent product launches cadence and could represent the next step in pushing the AI frontier.”
MOSL noted that Mythos builds on the significant capability gains seen in Opus, which, upon its release in Feb’26, had triggered a sharp selloff in tech and SaaS stocks. While the current rollout may not have a similar market impact, it further expands AI’s edge over humans across coding, ERP, and now cybersecurity.
The brokerage further added that Mythos reflects the rapid advancement of AI capabilities beyond coding into areas like cybersecurity, while highlighting that adoption remains easier in greenfield, cloud-first environments. In contrast, legacy-heavy enterprises face slower adoption due to integration, data cleanup and governance requirements, with 90% of top OpenAI token users being new-age companies, underscoring the scaling challenge.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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