Kyndryl Holdings, Inc. (KD) AI Stock Analysis

Kyndryl Holdings, Inc. is a global provider of technology services and IT infrastructure solutions. Headquartered in New York, the company specializes in optimizing and securing IT operations. Offerings include cloud services for scalable environments, core enterprise services for critical IT infrastructure management, and application, data, and artificial intelligence services. Kyndryl also provides digital workplace services to enhance collaboration, comprehensive security services to protect against cyber threats and ensure business resilience, and network services alongside edge computing solutions for distributed IT environments.

Revenue contracted at a 5-year CAGR of -4.9% from FY2021 to FY2026. Annual revenue declined from $18.66B in FY2022 to $15.06B in FY2025 before inching up 0.2% to $15.09B in FY2026. Gross margin expanded from 11.3% in FY2022 to 21.8% in FY2026, while operating margin improved from -3.6% to 4.2% over the same period. Net income transitioned from -$2.30B in FY2022 to $198.0M in FY2026, generating diluted EPS of $1.45. In the latest quarter ended June 30, 2026, quarterly revenue fell 3.3% year-over-year and quarterly earnings declined 73.1% year-over-year.

As of June 30, 2026, Kyndryl held $2.10B in cash and short-term investments against total debt of $4.93B, resulting in net debt of $2.83B. The current ratio stood at 0.85, and the debt-to-equity ratio was 4.61 on shareholders' equity of $1.07B. In FY2026, the company generated $948.0M in operating cash flow and $340.0M in free cash flow. Capital expenditures totaled $608.0M, and share buybacks absorbed $398.0M.

Kyndryl trades at a trailing P/E of 35.7x, above the 28.1x median of its US-listed Technology peers. However, its forward P/E of 5.4x, price-to-sales of 0.2x, and EV/EBITDA of 3.8x are well below the peer medians of 18.8x, 2.8x, and 16.6x, respectively. The stock fell 52.0% over the past year, significantly lagging the S&P 500 (SPY) gain of 16.8%.

Wall Street coverage includes 0 Strong Buy, 0 Buy, 5 Hold, and 1 Sell ratings. The mean price target is $14.20, representing upside of 7.5% from the last close of $13.21. For the fiscal year ending March 31, 2027, consensus estimates project revenue of $14.79B and EPS of $1.85, reflecting 27.0% EPS growth. Kyndryl beat EPS estimates in 1 of the last 4 quarters, with next earnings scheduled for November 4, 2026.

This page is an AI-written research summary of Kyndryl Holdings, Inc. (KD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: KD income statement, KD balance sheet, KD key metrics, KD analyst forecast, KD chart. See the KD stock overview for the latest quote and news.