Industry ChallengesThe industry view is downgraded to Cautious due to AI crowding out IT budgets, mounting pricing pressure, and expected ROIC dilution.
Investor SentimentThe year-to-date share decline of 14% reflects investor caution and mounting skepticism around Kyndryl Holdings' ability to achieve its FY28 targets.
Transition CostsInvestor debate centers on timing and magnitude of IBM transition costs, with bears arguing that legacy contract expirations could sharply raise expenses and constrain margin expansion.