Kyndryl downgraded to Perform from Outperform at Oppenheimer

Oppenheimer analyst Ian Zaffino downgraded Kyndryl (KD) to Perform from Outperform and removed the firm’s prior price target citing a shift in the business as it appears sales cycles have been extended, particularly in one of the company’s fastest-growing businesses, Kyndryl Consult. Management lowered FY26 guidance and now expects a constant currency revenue decline of 2%-3% year-over-year, owing to extended sales cycles and continued headwinds from pre-spin, legacy IBM contracts, while the departure of CFO David Wyshner adds uncertainty, the analyst tells investors.