Kyndryl Holdings Incorporation AI Stock Analysis
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Kyndryl Holdings Incorporation (KD) AI Stock Analysis
Kyndryl Holdings Incorporation
(NYSE:KD)
The score is supported most by strong technical momentum (price above major moving averages with positive MACD) and a constructive earnings call featuring reaffirmed profitability/free-cash-flow targets and strong signings. This is tempered by mid-range financial performance due to sharp TTM revenue decline and leverage risk signals, while valuation is moderately attractive on a ~11.5 P/E but lacks dividend yield support.
Kyndryl Holdings Incorporation Key Performance Indicators (KPIs)
Revenue by GeographyBreaks down Kyndryl’s sales across regions to highlight market concentration and where growth is coming from. Tracking regional trends helps investors spot expanding markets for infrastructure services and identify areas vulnerable to regulatory changes or economic headwinds.
Principal Markets are the clearest weak spot, reflecting Europe softness and the shrinking IBM relationship that trims top‑line growth, while Japan shows a steady erosion from its post‑spin baseline. Strategic Markets have been the most resilient, with recent recoveries driven by hyperscaler work and Kyndryl Consult signings, but the latest modest pullback highlights conversion risk. Management’s improved signings quality, AI/delivery productivity and restructuring aim to restore margins; the investment thesis hinges on converting signings into recurring revenue in Principal Markets to offset structural headwinds.
The FlyKyndryl Holdings Incorporation (KD) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $3.73B
- Dividend Yield
- ―
- Average Volume (3M)
- 4.14M
- Price to Earnings (P/E)
- 49.4
- Beta (1Y)
- 1.17
- Revenue Growth
- -0.74%
- EPS Growth
- -80.24%
- Country
- US
- Employees
- 72,000
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Information Technology Services
Kyndryl Holdings Incorporation Business Overview & Revenue Model
Company Description
Kyndryl Holdings, Inc. functions as a global technology and IT infrastructure services specialist. The firm delivers a comprehensive portfolio of IT solutions, encompassing cloud computing, foundational enterprise platforms, application development,...
How the Company Makes Money
Kyndryl makes money primarily by selling managed infrastructure services and related professional services to large organizations under contractual arrangements. A significant portion of revenue comes from long-term or recurring engagements to operat...
Kyndryl Holdings Incorporation Earnings Call Summary
The call was constructive and generally positive. Management highlighted strong signings, improving margins, U.S. growth, modernization and AI demand, completed workforce actions, balance-sheet flexibility, and reaffirmed fiscal 2027 and fiscal 2028 objectives. These positives were partly offset by a 1.9% reported revenue decline, a first-half free cash flow use, higher amortization and interest expense, sequential deceleration in Kyndryl Consult growth, and continued challenges in Europe.
Q2-2027 Updates
Positive Updates
Negative Updates
Company Guidance
For fiscal 2027, Kyndryl reaffirmed adjusted pre-tax income of $600 million-$700 million, revenue flat to down 2% in constant currency, free cash flow of $400 million-$500 million, amortization expense of approximately $1.3 billion, and interest expense of approximately $160 million; it expects gross margins to expand through the remainder of the year, stronger revenue growth in the second half, and Kyndryl Consult growth of high single or low double-digit growth on a full year basis. The fiscal 2027 pre-tax income outlook includes approximately $200 million of workforce rebalancing charges and a similar amount of savings this year, while fiscal 2028 is expected to yield annualized operating expense savings in the range of $400 million-$500 million; the $1 billion adjusted free cash flow target for fiscal 2028 is still on track, and net leverage is expected to remain below one times adjusted EBITDA exiting the fiscal year.
Kyndryl Holdings Incorporation Financial Statement Overview
Summary
Turnaround is evident with improved margins and a shift to modest profitability, plus operating cash flow and free cash flow turning positive. Offsetting this, TTM revenue is down sharply (~-26.5%) and the balance sheet profile is flagged as highly levered in the multi-year annual data (with some TTM inconsistency), keeping overall financial strength only mid-range.
Income Statement
54NeutralBalance Sheet
35NegativeCash Flow
58Neutral| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.90B | 15.09B | 15.06B | 16.05B | 17.03B | 18.66B |
| Gross Profit | 3.32B | 3.29B | 3.14B | 2.86B | 2.53B | 2.11B |
| EBITDA | 2.02B | 3.28B | 1.55B | 1.14B | 617.00M | -175.00M |
| Net Income | 78.00M | 198.00M | 252.00M | -340.00M | -1.37B | -2.30B |
Balance Sheet | ||||||
| Total Assets | 11.87B | 12.55B | 10.45B | 10.59B | 11.46B | 13.21B |
| Cash, Cash Equivalents and Short-Term Investments | 1.66B | 2.62B | 1.79B | 1.55B | 1.85B | 2.22B |
| Total Debt | 4.89B | 4.96B | 3.96B | 4.14B | 4.24B | 4.60B |
| Total Liabilities | 10.69B | 11.26B | 9.12B | 9.47B | 10.00B | 10.45B |
| Stockholders Equity | 1.08B | 1.18B | 1.22B | 1.01B | 1.36B | 2.77B |
Cash Flow | ||||||
| Free Cash Flow | 90.00M | 340.00M | 337.00M | -197.00M | -84.00M | -871.00M |
| Operating Cash Flow | 789.00M | 948.00M | 942.00M | 454.00M | 781.00M | -119.00M |
| Investing Cash Flow | -933.00M | -561.00M | -404.00M | -553.00M | -835.00M | -572.00M |
| Financing Cash Flow | 525.00M | 457.00M | -286.00M | -170.00M | -141.00M | 2.92B |
Kyndryl Holdings Incorporation Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KD, the sentiment is Positive. The current price of 17.06 is above the 20-day moving average (MA) of 14.78, above the 50-day MA of 13.25, and above the 200-day MA of 13.16, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 69.07 is Neutral, neither overbought nor oversold. The STOCH value of 81.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KD.
Kyndryl Holdings Incorporation Risk Analysis
Kyndryl Holdings Incorporation disclosed 29 risk factors in its most recent earnings report. Kyndryl Holdings Incorporation reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksKyndryl Holdings Incorporation Peers Comparison
Overall Rating
ACN84Outperform
INFY80Outperform
IBM79Outperform
CTSH77Outperform- KD63Neutral
DXC60Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ACN | 84Outperform | $149.92B | 18.45 | 26.77% | 2.64% | 6.47% | 11.19% |
| INFY | 80Outperform | $49.76B | 15.26 | 33.75% | 4.39% | -1.35% | 3.37% |
| IBM | 79Outperform | $234.60B | 20.61 | 32.95% | 2.76% | 6.83% | 39.80% |
| CTSH | 77Outperform | $28.80B | 11.69 | 17.36% | 2.05% | 4.96% | 27.16% |
| KD | 63Neutral | $3.73B | 49.38 | 6.91% | ― | -0.74% | -80.24% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| DXC | 60Neutral | $2.37B | 20.88 | 3.67% | ― | -2.81% | -67.00% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| KD | Kyndryl Holdings Incorporation | 17.06 | -8.66 | -33.67% | |
| ACN | Accenture Plc | 249.95 | 12.99 | 5.48% | |
| CTSH | Cognizant Technology Solutions | 63.75 | -7.27 | -10.23% | |
| INFY | Infosys | 12.29 | -3.75 | -23.36% | |
| IBM | International Business Machines Corporation | 244.67 | -52.86 | -17.77% | |
| DXC | Dxc Technology Company | 14.85 | 1.94 | 15.03% |
Kyndryl Holdings Incorporation Corporate Events
Kyndryl Issues New Senior Notes to Refinance Debt
NeutralOn September 24, 2026, Kyndryl Holdings, Inc. entered into an underwriting agreement with a syndicate led by J.P. Morgan, Citigroup and Morgan Stanley to issue $1.0 billion of senior unsecured notes, split between $600 million of 7.800% notes due 202...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 05, 2026