olivLaw · US equity research
Kyndryl Holdings, Inc. KD
Services-Computer Integrated Systems Design · SIC 7373 · Vertical: Services-Computer Integrated Systems Design (SIC 7373)
Kyndryl is the world's largest IT infrastructure services provider, designing, building and managing mission-critical systems for banks, insurers and other companies in more than 60 countries. The company is in a restructuring phase, with broadly stable revenue but margins under pressure and a shift toward consulting and AI services, with revenue of 15.1 billion dollars in fiscal 2026.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Kyndryl Holdings, Inc. (KD) stock was 16.84 USD (+30.14% on the day), with market capitalisation 3.7 bn USD, P/E 48.9 on diluted EPS of 0.34 USD over the last 12 months, dividend yield 0.00%, beta 1.30, 52-week range 10.59–27.50 USD. Latest reported quarter (Q2 2027): revenue of 3.7 bn USD (−1.9% YoY), net income of 59.0 m USD (−13.2% YoY), diluted EPS 0.27 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 71.5
- overbought (≥ 70)
- Bollinger (20, 2)
- 11.02 – 16.12
- above the upper band · %B 1.14 · band width 37.6%
- SMA 50 / 200
- 12.89 / 13.35
- mixed trend
- MACD (12, 26, 9)
- 0.60 / 0.47
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +45.0% | −1.1% | +46.1 pp | — |
| 3 months | +21.2% | −0.5% | +21.6 pp | — |
| 6 months | +28.4% | +4.4% | +24.0 pp | — |
| Year to date | −36.6% | +12.3% | −48.9 pp | — |
| 1 year | −38.6% | +13.5% | −52.2 pp | −33.2% |
| 3 years | +9.4% | +76.4% | −67.1 pp | −27.7% |
| 5 years | −30.6% | +63.7% | −94.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.7 bn | 3.8 bn | 3.7 bn | 3.7 bn | 3.9 bn | 3.8 bn | 3.6 bn | 3.7 bn |
| Cost of revenue | 3.0 bn | 3.0 bn | 2.9 bn | 2.9 bn | 3.0 bn | 2.9 bn | 2.8 bn | 2.8 bn |
| SG&A | 647.0 m | 640.0 m | 646.0 m | 659.0 m | 672.0 m | 678.0 m | 668.0 m | 669.0 m |
| Interest expense | 24.0 m | 23.0 m | 19.0 m | 20.0 m | 21.0 m | 29.0 m | 34.0 m | 37.0 m |
| Pre-tax income | 258.0 m | 118.0 m | 92.0 m | 98.0 m | 91.0 m | 133.0 m | -69.0 m | 112.0 m |
| Income tax | 43.0 m | 50.0 m | 36.0 m | 30.0 m | 34.0 m | 115.0 m | -14.0 m | 53.0 m |
| Net income | 215.0 m | 69.0 m | 56.0 m | 68.0 m | 57.0 m | 17.0 m | -55.0 m | 59.0 m |
| Diluted EPS | 0.89 | 0.29 ≈ | 0.23 | 0.29 | 0.25 | 0.07 ≈ | -0.25 | 0.27 |
| Operating cash flow | 260.0 m ≈ | 581.0 m | -124.0 m | 146.0 m ≈ | 428.0 m ≈ | 498.0 m | -310.0 m | 173.0 m ≈ |
| Capex | 109.0 m ≈ | 240.0 m | 143.0 m | 129.0 m ≈ | 220.0 m ≈ | 116.0 m | 149.0 m | 214.0 m ≈ |
| Share repurchases | — | 63.0 m | 62.0 m | 89.0 m ≈ | 99.0 m ≈ | 54.0 m | 64.0 m | 33.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 88 percentile of its own 8-quarter history (min 15.5, median 30.7, max 62.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|
| Revenue | 20.3 bn | 19.4 bn | 18.7 bn | 17.0 bn | 16.1 bn | 15.1 bn | 15.1 bn |
| Revenue YoY | unavailable | −4.6% | −3.6% | unavailable | −5.7% | −6.2% | +0.2% |
| Net income | -943.0 m | -2.0 bn | -2.3 bn | -1.4 bn | -340.0 m | 252.0 m | 198.0 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | −21.4% |
| Diluted EPS | -4.21 | -8.96 | -10.28 | -6.06 | -1.48 | 1.05 | 0.85 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | −19.0% |
| net % | -4.7% | -10.4% | -12.3% | -8.1% | -2.1% | 1.7% | 1.3% |
| Free cash flow | -56.0 m | -408.0 m | -871.0 m | -84.0 m | -197.0 m | 337.0 m | 340.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 2.6 bn USD
- Financial debt
- 5.7 bn USD
- Net debt
- 3.1 bn USD
- Equity
- 1.3 bn USD
- Total assets
- 12.6 bn USD
- Debt / equity
- 4.41x
- Current ratio
- 0.88x
- ROE
- 15.1%
- ROA
- 1.7%
- FCF margin
- 2.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 19.4 bn | 18.7 bn | 17.0 bn | 16.1 bn | 15.1 bn | 15.1 bn | SEC (XBRL)· 29 May 2026verified |
| Cost of revenue | 17.1 bn | 16.6 bn | 14.5 bn | 13.2 bn | 11.9 bn | 11.8 bn | SEC (XBRL)· 29 May 2026verified |
| Gross profit | 2.2 bn ≈ | 2.1 bn ≈ | 2.5 bn ≈ | 2.9 bn ≈ | 3.1 bn ≈ | 3.3 bn ≈ | SEC (XBRL)· 29 May 2026derived |
| Research & development | 76.0 m | 63.0 m | 79.0 m | 58.0 m | 49.0 m | 57.0 m | SEC (XBRL)· 29 May 2026verified |
| SG&A | 2.9 bn | 2.8 bn | 2.9 bn | 2.8 bn | 2.6 bn | 2.7 bn | SEC (XBRL)· 29 May 2026verified |
| Interest expense | 63.0 m | 64.0 m | 94.0 m | 122.0 m | 100.0 m | 89.0 m | SEC (XBRL)· 29 May 2026verified |
| Pre-tax income | -1.8 bn | -1.9 bn | -851.0 m | -168.0 m | 435.0 m | 414.0 m | SEC (XBRL)· 29 May 2026verified |
| Income tax | 247.0 m | 402.0 m | 524.0 m | 172.0 m | 184.0 m | 215.0 m | SEC (XBRL)· 29 May 2026verified |
| Net income | -2.0 bn | -2.3 bn | -1.4 bn | -340.0 m | 252.0 m | 198.0 m | SEC (XBRL)· 29 May 2026verified |
| Diluted EPS | -8.96 | -10.28 | -6.06 | -1.48 | 1.05 | 0.85 | SEC (XBRL)· 29 May 2026verified |
| Weighted average diluted shares | 224.1 m | 224.1 m | 226.7 m | 229.2 m | 239.1 m | 233.8 m | SEC (XBRL)· 29 May 2026verified |
| Dividend per share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | SEC (XBRL)· 29 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue.
Balance sheet · USD
| Line | 2020 | 2021 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 24.0 m | 2.2 bn | 1.8 bn | 1.6 bn | 1.8 bn | 2.6 bn | SEC (XBRL)· 29 May 2026verified |
| Receivables | 1.4 bn | 2.3 bn | 1.5 bn | 1.6 bn | 1.3 bn | 1.3 bn | SEC (XBRL)· 29 May 2026verified |
| Current assets | 2.8 bn | 5.8 bn | 5.0 bn | 4.7 bn | 4.6 bn | 5.5 bn | SEC (XBRL)· 29 May 2026verified |
| Property, plant & equipment, net | 4.0 bn | 2.9 bn | 2.8 bn | 2.7 bn | 2.6 bn | 2.5 bn | SEC (XBRL)· 29 May 2026verified |
| Goodwill | 1.2 bn | 732.0 m | 812.0 m | 805.0 m | 790.0 m | 786.0 m | SEC (XBRL)· 29 May 2026verified |
| Intangibles (excl. goodwill) | 60.0 m | 36.0 m | 171.0 m | 188.0 m | 218.0 m | 165.0 m | SEC (XBRL)· 29 May 2026verified |
| Total assets | 11.2 bn | 13.2 bn | 11.5 bn | 10.6 bn | 10.5 bn | 12.6 bn | SEC (XBRL)· 29 May 2026verified |
| Accounts payable | 919.0 m | 1.1 bn | 1.8 bn | 1.4 bn | 1.4 bn | 1.3 bn | SEC (XBRL)· 29 May 2026verified |
| Short-term debt | 69.0 m | 105.0 m | 110.0 m | 126.0 m | 129.0 m | 1.8 bn | SEC (XBRL)· 29 May 2026verified |
| Long-term debt | 140.0 m | 3.0 bn | 3.0 bn | 2.9 bn | 2.9 bn | 3.9 bn | SEC (XBRL)· 29 May 2026verified |
| Current liabilities | 3.9 bn | 4.5 bn | 4.9 bn | 4.6 bn | 4.3 bn | 6.3 bn | SEC (XBRL)· 29 May 2026verified |
| Total liabilities | 6.3 bn | 10.4 bn | 10.0 bn | 9.5 bn | 9.1 bn | 11.3 bn | SEC (XBRL)· 29 May 2026verified |
| Equity | 5.0 bn | 2.8 bn | 1.5 bn | 1.1 bn | 1.3 bn | 1.3 bn | SEC (XBRL)· 29 May 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 628.0 m | -119.0 m | 781.0 m | 454.0 m | 942.0 m | 948.0 m | SEC (XBRL)· 29 May 2026verified |
| Capex | 1.0 bn | 752.0 m | 865.0 m | 651.0 m | 605.0 m | 608.0 m | SEC (XBRL)· 29 May 2026verified |
| Free cash flow | -408.0 m ≈ | -871.0 m ≈ | -84.0 m ≈ | -197.0 m ≈ | 337.0 m ≈ | 340.0 m ≈ | SEC (XBRL)· 29 May 2026derived |
| Investing cash flow | -953.0 m | -572.0 m | -835.0 m | -553.0 m | -404.0 m | -561.0 m | SEC (XBRL)· 29 May 2026verified |
| Financing cash flow | 312.0 m | 2.9 bn | -141.0 m | -170.0 m | -286.0 m | 457.0 m | SEC (XBRL)· 29 May 2026verified |
| Share repurchases | — | — | — | — | 93.0 m | 304.0 m | SEC (XBRL)· 29 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 36 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 3.7 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation78
- Returns100
- Quality1
- Balance sheet9
- Growth10
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.44 – 210.76 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)0.44 – 12.15 (Mid 3.66)WACC 6.9% · starting FCFF 191.6 m USD · terminal value share of EV 80%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 21.0%
- Peers: EV/Sales47.67 – 210.76 (Mid 104.43)12 companies used · median multiple 1.7x · quartiles 0.9x – 3.3xCACI, CREX, DAIC, FUSE, GDDY, HCTI, JKHY, LDOS, OTEX, RBBN, SAIC, WAY
- Peers: EV/EBITDAunavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 36/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 22.3% | 0 (on a fixed band) | 13% |
| EBIT margin · Quality | unavailable | unavailable | — |
| FCF margin · Quality | 0.6% | 2 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | -3.9% | 0 (on a fixed band) | 20% |
| Revenue growth (YoY) · Growth | 0.2% | 30 (vs peers) | 10% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.0x | 9 (on a fixed band) | 8% |
| EV/Sales · Valuation | 0.4x | 100 (vs peers) | 20% |
| FCF yield · Valuation | 2.5% | 49 (on a fixed band) | 15% |
| Shareholder yield (distributions) · Returns | 6.8% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial9/100 · 1/2 factors with a value
- Growth10/100 · 2/2 factors with a value
- Quality1/100 · 2/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation78/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Kyndryl Holdings, Inc (KD). Latest full fiscal year: 2026; data up to 2026-09-30.
Figures computed from the financial statements: revenue 15.1 bn USD in 2026; YoY growth 0.2%; net margin 0.5%; ROE 6.8%.
The estimated value range is 24.05–111.45 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 54.04 USD, the price of 16.84 USD leaves a potential of 220.9% (value / price − 1) and a margin of safety of 68.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 36/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EV/Sales: 0.4x
- Shareholder yield (distributions): 6.8%
- The price is below the estimated value range
What contradicts it
- Gross margin: 22.3%
- FCF margin: 0.6%
- Revenue CAGR 3Y: -3.9%
- Revenue growth (YoY): 0.2%
- Current ratio: 1.0x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): EBIT margin, Net debt / EBITDA.
Versus the vertical median
Services-Computer Integrated Systems Design (SIC 7373) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LDOSLeidos Holdings, Inc. | 16.6 bn | 12.2 | 28.2% | 8.0% | +3.1% | −29% / +26% |
| GDDYGoDaddy Inc. | 14.3 bn | 16.2 | — | 18.6% | +8.3% | −7% / +18% |
| CACICACI International Inc | 14.0 bn | 25.9 | 12.5% | 5.5% | +10.9% | +2% / +97% |
| JKHYJack Henry & Associates, Inc. | 12.6 bn | 25.7 | 24.0% | 19.8% | +7.1% | +3% / +13% |
| IONQIonQ, Inc. | 11.3 bn | — | -60.8% | -553.3% | +201.9% | −40% / +142% |
| OTEXOpen Text Corp | 6.4 bn | 10.3 | 16.2% | 12.3% | +1.5% | −21% / −34% |
| SAICScience Applications International Corporation | 6.3 bn | 17.6 | 25.7% | 5.1% | −2.9% | +75% / +28% |
| WAYWaystar Holding Corp. | 5.7 bn | 42.9 | 3.7% | 10.7% | +16.5% | −20% / unavailable |
| KDKyndryl Holdings, Inc | 3.7 bn | 48.9 | 6.8% | 0.5% | +0.2% | −39% / +9% |
| AGYSAgilysys, Inc. | 3.5 bn | 78.5 | 13.6% | 12.9% | +15.9% | −0% / +42% |
| NTCTNetscout Systems Inc | 2.8 bn | 23.3 | 7.5% | 13.7% | +4.5% | +42% / +90% |
| AURAurora Innovation, Inc. | 2.6 bn | — | -45.7% | -13,328.6% | unavailable | −3% / +86% |
| PONYPony AI Inc. | 2.1 bn | — | -10.3% | -148.9% | +20.0% | −65% / unavailable |
| OSPNOneSpan Inc. | 872.9 m | 13.2 | 26.8% | 27.5% | +0.0% | +94% / +136% |
| TLSTelos Corporation | 378.2 m | — | -14.9% | -8.1% | +52.2% | −12% / +23% |
| SLPSimulations Plus, Inc. | 374.2 m | 46.7 | 6.2% | 9.9% | +13.1% | unavailable / unavailable |
| SMRTSmartrent, Inc. | 307.5 m | — | -7.6% | -11.0% | −12.9% | −6% / −48% |
| ASURAsure Software, Inc. | 293.6 m | — | -1.9% | — | +24.3% | +22% / +22% |
| VEEAVeea Inc. | 281.2 m | — | — | -2,491.9% | +56.6% | −55% / −98% |
| RBBNRibbon Communications Inc. | 275.9 m | 22.5 | 5.0% | 2.3% | +1.3% | −46% / −28% |
| KDKKodiak AI, Inc. | 220.7 m | — | — | -4,259.6% | −74.6% | −82% / unavailable |
| AIOSAIOS Tech Inc. | 138.9 m | — | -208.9% | -4,359.1% | −98.5% | −87% / −86% |
| MRLNMerlin, Inc. | 91.5 m | — | — | — | unavailable | −92% / unavailable |
| CSPICSP Inc | 75.4 m | — | -1.5% | -1.2% | +6.4% | −35% / −40% |
| HCTIHealthcare Triangle, Inc. | 69.2 m | — | -57.4% | -66.3% | +18.8% | −97% / −100% |
1- and 3-year price returns: for KD from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 9.46 Total return -44% · Per year -44% | 16.81 Total return -0% · Per year -0% | 25.42 Total return 51% · Per year 51% |
| 3 years | 7.69 Total return -54% · Per year -23% | 15.51 Total return -8% · Per year -3% | 25.96 Total return 54% · Per year 16% |
| 5 years | 6.25 Total return -63% · Per year -18% | 14.31 Total return -15% · Per year -3% | 26.51 Total return 57% · Per year 10% |
- Exit P/E± 3.88
- Net margin± 2.71
- Annual revenue growth± 2.42
- Annual dilution± 0.23
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results), 10-Q (04 Nov 2026).
In brief
Kyndryl is the world's largest IT infrastructure services provider, designing, building and managing mission-critical systems for banks, insurers and other companies in more than 60 countries. The company is in a restructuring phase, with broadly stable revenue but margins under pressure and a shift toward consulting and AI services, with revenue of 15.1 billion dollars in fiscal 2026.
SWOT
Strengths
- The company holds a leading position in IT infrastructure services and a broad customer base in regulated industries 1.
- Growth in Kyndryl Consult and hyperscaler-related services shows a portfolio that can adapt to demand 23.
- The Kyndryl Bridge platform and automated delivery give an efficiency advantage over rivals 1.
Weaknesses
- Revenue has been flat or declining in several segments, and the first-quarter net loss shows pressure on profitability 23.
- The company has identified material weaknesses in internal control over financial reporting, which require time and resources to remediate 12.
- Dependence on content from former parent IBM has reduced revenue from some contracts 1.
Opportunities
- AI-led modernization could generate new contracts if clients move from experiments to scaled deployments 3.
- Cost savings from workforce rebalancing could improve margins after fiscal 2028 if the savings materialize 3.
- Expanding hyperscaler partnerships could open access to new customers and markets 1.
Threats
- Competition from low-cost providers and integrators could compress margins, especially at contract renewals 1.
- New AI technologies could reduce demand for traditional infrastructure management services 1.
- The ongoing SEC investigation into cash management practices could carry financial consequences whose outcome the company cannot predict 12.
Risks
- Loss of customers and contractshigh
Contracts run for an average of over five years, but customers have no obligation to renew, and losing major customers could hurt revenue 1.
- Productivity and growth objectivesmedium
Growth and savings depend on assumptions about spending and restructuring, and the company may take longer than expected to realize the benefits 13.
- Internal control weaknesseshigh
Material weaknesses in internal control over financial reporting could weigh on investor confidence until remediated 12.
- SEC investigationmedium
The SEC Division of Enforcement investigation into cash management is ongoing and its outcome cannot be predicted 12.
- Partner dependencemedium
Suppliers and partners may become competitors or restrict access to technology, which could reduce competitiveness 1.
Investment thesis
What would need to be true (bull case)
- If revenue from consulting and hyperscaler-related services keeps growing, the company could gradually recover from declines in other areas 23.
- If restructuring savings materialize after fiscal 2028, margins could return to a stronger level 3.
- Signings over the last twelve months show that demand for large projects remains present among clients 3.
What would break the thesis
- If lengthening sales cycles persist, revenue and margins could stay under more pressure than expected 12.
- The first-quarter net loss and large restructuring charges could indicate difficulty reaching the announced profitability 23.
- If remediation of internal control weaknesses takes long, investor confidence could be affected further 12.
What to watch
- Quarterly results and delivery against the adjusted pretax income outlook2027
- Progress of restructuring charges and the announced operating expense savingsfiscal 2028
- Remediation of material weaknesses in internal controlnext 10-K
- Outcome of the SEC investigation into cash management practices2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results), 10-Q (04 Nov 2026).
The business
Kyndryl provides advisory, implementation and managed services for its customers' IT infrastructure across public, private, hybrid and on-premises cloud environments 1. The company was formed in November 2021 through the spin-off of an infrastructure services unit from IBM 1. Its portfolio spans cloud, core enterprise systems, applications, data and AI, digital workplace, security and resiliency, and network and edge services 1. Revenue in fiscal 2026 was 15.1 billion dollars, essentially flat year on year, and net income was 198 million dollars 1. The company has about 72,000 employees, roughly 90% of them outside the U.S. 1.
The business model rests on three initiatives called 'three-A': Alliances, Advanced Delivery and Accounts, aimed at growing partner-driven revenue, automating service delivery and improving margins on underperforming contracts 1. Kyndryl Bridge, its proprietary digital platform, is used for automation and agentic AI within internal operations 1. The company works with hyperscalers such as Amazon Web Services, Google Cloud and Microsoft, as well as other technology partners 1.
Segments are geographic: United States, Japan, Principal Markets and Strategic Markets 1. In the first quarter of fiscal 2027 the company reported revenue of 3.6 billion dollars, down 3% year on year, and a net loss of 55 million dollars, affected by workforce rebalancing charges of 152 million dollars 3. The company reaffirmed its fiscal 2027 outlook 3.
Segments
United States
The U.S. segment generated 3,784 million dollars of revenue in fiscal 2026, down 2%, reflecting the expiry of low-margin contracts entered into before the spin-off from IBM 1. Adjusted EBITDA rose 15% 1. In the first quarter of fiscal 2027 segment revenue rose 5% to 954 million dollars, driven by recent signings 2.
Market context
Kyndryl operates in the technology services market, competing with many providers from small specialists to large integrators 1. Its customers are concentrated in regulated industries: about 45% of revenue comes from financial services 1 and 14% from the industrial sector 1. Demand for modernization, cloud migration and secure systems supports the market 1. The company notes, however, that lengthening sales cycles have weighed on revenue and margins 12.
The macro environment remained volatile in 2026 because of trade tensions, geopolitical conflicts and U.S. tariffs, factors that can change the level of IT demand 12. Adoption of generative and agentic AI creates both opportunities and the risk of lower demand for traditional services 1.
Trends
- Demand for hyperscaler and consulting servicestailwind
Revenue linked to hyperscalers and Kyndryl Consult is growing, which could offset declines elsewhere if the trend holds 23.
- Adoption of agentic AImixed
Customers are seeking AI-based modernization, which can open new contracts, but new technologies may reduce demand for traditional services if not integrated quickly 13.
- Lengthening sales cyclesheadwind
Longer decision cycles have weighed on revenue and margins in fiscal 2026 and in the first quarter of fiscal 2027, which could slow a recovery if they persist 12.
- Macroeconomic and trade uncertaintyheadwind
Trade tensions and tariffs can delay customer investment decisions, which could further reduce new contract volume 12.
Competitive position
Kyndryl competes with incumbents that have extended their offerings into cloud, with labor-based firms using lower-cost talent pools, and with advisory-focused system integrators 1. The main competitive factors are advisory capability, service quality, technical skills and speed of execution 1.
The company says its advantages are long-term relationships with customers in complex regulated industries, automation through Kyndryl Bridge and partnerships with major technology providers 1. Some partners may also become competitors in certain areas, which complicates alliance relationships 1.
- Cloud incumbents and technology vendors
Companies that have extended their offerings into cloud migration and management, some of which are also Kyndryl partners 1.
- Labor-based providers in lower-cost countries
Firms with broad service portfolios and worldwide presence that use delivery models built on talent pools in lower-cost countries 1.
- Advisory-focused system integrators
Firms specializing in bringing disparate technology environments together, competing directly with Kyndryl's consulting arm 1.
- Small specialized providers
Small companies serving a limited number of customers and competing in specific niches of IT services 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Kyndryl, Broadcom deepen partnership to build AI-ready private cloudsYahoo Finance — News · 28 Aug 2026 · EN
- Kyndryl showers execs with shares while staff ponder redundancy packagesThe Register · 09 Jun 2026 · RO
- Kyndryl takes employees' pulse while cutting off circulation for someThe Register · 28 May 2026 · RO
- 'Workforce rebalancing' comes for Kyndryl, and delivery teams are in the firing lineThe Register · 20 May 2026 · RO
The latest news item in our archive is from 28 Aug 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report04 Nov 2026
- Current report04 Nov 2026Results of operations · Financial statements and exhibits
- Current report28 Sept 2026Other events · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report31 Jul 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Current report06 Jul 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Proxy statement16 Jun 2026
- Annual report29 May 2026
- Current report06 May 2026Results of operations · Exit or disposal costs · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / Kyndryl Holdings, Inc. · 29 May 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Kyndryl Holdings, Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Kyndryl Holdings, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.