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Kyndryl Holdings Incorporation ( (KD) ) has provided an update.
On May 5, 2026, Kyndryl approved workforce rebalancing actions aimed at streamlining operations, expecting about $200 million in severance-related charges largely in the first quarter of fiscal 2027 and targeting annualized run-rate operating expense savings of $400 million to $500 million by fiscal 2028, subject to local legal and economic conditions. The company also reported fiscal 2026 results on May 6, 2026, with annual revenue of $15.1 billion, pretax income of $414 million and net income of $198 million, highlighted strong growth in hyperscaler-related and consulting revenues, continued margin expansion initiatives, $304 million of share buybacks, and issued a fiscal 2027 outlook calling for flat to slightly lower constant-currency revenue and higher adjusted pretax income and free cash flow.
For the quarter ended March 31, 2026, Kyndryl posted $3.8 billion in revenue and $17 million in net income, alongside solid adjusted EBITDA and free cash flow, while noting the impact of a non-recurring tax accrual on earnings. Management emphasized rising signings, particularly higher-margin new-scope and new-logo business, and the expansion of its agentic AI offerings as key drivers to improve profitability and underpin its multi-year objectives, even as the company invests in restructuring to enhance long-term efficiency and competitiveness.
The most recent analyst rating on (KD) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Kyndryl Holdings Incorporation stock, see the KD Stock Forecast page.
Spark’s Take on KD Stock
According to Spark, TipRanks’ AI Analyst, KD is a Neutral.
KD scores in the mid-50s primarily due to a mixed financial profile: improved profitability but ongoing revenue contraction, leverage/statement-quality concerns, and uneven cash-flow conversion. Technicals show some near-term improvement but a still-weak longer-term trend. Valuation is moderate-to-demanding at ~26.5x earnings, and the latest call added caution as FY26 guidance was cut and the SEC review introduced additional overhang despite solid signings and growth in higher-value offerings.
To see Spark’s full report on KD stock, click here.
More about Kyndryl Holdings Incorporation
Kyndryl Holdings Inc. is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed services to thousands of customers in more than 60 countries. As the world’s largest IT infrastructure services provider, it designs, builds, manages and modernizes complex information systems, with a growing focus on IT modernization, cloud, cybersecurity and agentic AI solutions.
Average Trading Volume: 5,780,865
Technical Sentiment Signal: Sell
Current Market Cap: $3.24B
For a thorough assessment of KD stock, go to TipRanks’ Stock Analysis page.