Track market-moving stories before they get noisy

AI agents drive faster, higher-quality outcomes across infrastructure design and operations

, /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, Toyota Systems Corporation ("Toyota Systems") and Toyota Finance Corporation ("Toyota Finance") today announced that Kyndryl and Toyota Systems are supporting Toyota Finance in transforming IT service operations. The project will leverage agentic AI to enhance infrastructure design, change management and impact analysis processes.

Kyndryl and Toyota Systems will apply the Kyndryl Agentic AI Framework to implement AI-native workflows across Toyota Finance's enterprise IT operations. Kyndryl and Toyota Systems are developing an IT change management operations solution that will deploy AI agents using customer-specific rules and knowledge, including IT environments, runbooks and operational schedules, to identify inconsistencies and potential risks.

"People are essential to sustainable growth. By enabling the skilled engineers of Toyota Systems and Kyndryl to use technologies such as agentic AI, we can create a virtuous cycle in which people are able to shift their focus toward taking on new challenges and creating greater value," said Akira Umehara, Head of the IT Division, Toyota Finance. "We aim to evolve digital technology into a force that creates the business itself."

"To help realize a sustainable mobility society, we have embarked on an initiative to transform our IT operations in ways that support this goal. Going forward, we will work even more closely with Kyndryl to apply human-centered agentic AI across the entire IT lifecycle. In other words, this reflects the same philosophy as jidoka, or 'automation with a human touch.' By combining frontline expertise with digital technology, we will create value through continuous improvement," said Iwao Nakano, Commissioner and Head of the Finance IT Division, Toyota Systems.

"Kyndryl's infrastructure-first approach to deploying agentic AI enables us to support enterprise AI adoption at production scale, while balancing scalability and security across mission-critical systems," said Yoshinori Irisawa, President, Kyndryl Japan. "We will continue to work closely with our customers to help them deploy AI safely and effectively, while maintaining strong governance and operational resilience."

Working together with Kyndryl and Toyota Systems, Toyota Finance will use agentic AI in its production environment to respond more quickly to evolving business needs while maintaining high-quality infrastructure services aligned with corporate governance standards. In addition, the initiative will strengthen business continuity and help improve engineering productivity at Toyota Finance. This AI agent-enabled enhancement will improve efficiency and standardize quality in review workflows. Impact analysis for system changes shows how agents can reduce both decision-making time and engineers' workload. Kyndryl, Toyota Systems and Toyota Finance plan to further expand the application of agentic AI across the entire IT infrastructure lifecycle to drive broader transformation of IT service processes.

About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com or www.kyndryl.com/jp/ja.

About Toyota Finance
Toyota Finance Corporation was established several decades ago and has built a leading position as a comprehensive provider of automotive financial services in Japan. Headquartered in Nagoya, Aichi Prefecture, the company operates nationwide and provides services to a broad range of customers. Beyond financial services, Toyota Finance is committed to creating more convenient and rewarding mobility experiences. For more information, visit Toyota Finance.

About Toyota Systems
Toyota Systems is the Toyota Group's IT solutions company. Through the power of IT, the company works to create new forms of ever-evolving mobility and help realize a more comfortable future for communities, vehicles and transportation. For more information, visit Toyota Systems.

Kyndryl press contact 
[email protected]

SOURCE Kyndryl

Investment reinforces Kyndryl's commitment to advancing customer innovation and AI adoption across the United States

, /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced the opening of its first U.S. AI Innovation Lab in the Dallas-Fort Worth area. The investment is expected to create up to 300 highly skilled jobs in AI, technology consulting and design engineering over the next four years. The Lab also reinforces Kyndryl's long-term commitment to America's digital future and to advancing innovation, workforce development and customer engagement in the U.S.

"The future of AI will be built through collaboration, and our AI Innovation Lab in Dallas brings customers together with Kyndryl experts to unlock the full value of AI while strengthening America's innovation ecosystem," said Jamie Rutledge, President, Kyndryl U.S. "Powered by the Kyndryl Agentic AI Framework and our deep consulting, engineering and infrastructure expertise, the Lab gives customers a hands-on environment to experiment, innovate and turn ideas into outcomes with greater speed and confidence."

The Kyndryl AI Innovation Lab in Dallas will focus on helping customers modernize their technology environments for AI. Kyndryl's latest modernization research found that 34% of organizations are modernizing to enable AI capabilities, making it a larger driver of modernization than cost reduction (29%). The research also found that AI is increasing demand across cloud, mainframe, network and edge environments, reinforcing that modernization is more than a legacy-retirement exercise – it is the foundation for enabling AI at scale.

The Lab will use a repeatable method that combines the company's Agentic AI Framework with Kyndryl Consult and AI services, infrastructure and engineering expertise, and Kyndryl Vital's design-led transformation practice. Through an immersive, four-phase approach — customer immersion, co-design, build and roadmap — customers will work alongside Kyndryl experts through workshops, rapid prototyping and engineering co-creation to solve business challenges where AI can deliver measurable impact. Together, they will validate ideas, design future workflows and rapidly advance from exploratory use cases to working prototypes in days, creating a clear path from prototype to production and helping customers deploy AI-enabled workflows across a customer's business at scale.

"Kyndryl is a pioneering company that could have chosen any market in the United States, and its decision to establish a major innovation hub in Frisco underscores the strength of our community and the reputation we've earned as one of the best places in the country for growth, innovation, and exceptional talent," said Mayor Mark Hill, City of Frisco. 

Beyond accelerating customers' AI adoption journeys, the Kyndryl AI Innovation Lab in Dallas will serve as a catalyst for workforce development, community engagement and public sector innovation across Texas, including:

Building an AI talent pipeline: Kyndryl is partnering with NPower, Dallas AI, Tech Titans and other local organizations to expand access to AI and emerging technology skills, creating new career pathways while strengthening the region's innovation ecosystem. As an inaugural supporter of NPower's AI training program, Kyndryl is helping equip learners with practical skills in areas such as prompt engineering and automation. Advancing motor vehicle services: The AI Innovation Lab in Dallas will be home to a specialized team focused on Kyndryl's DMV solutions, supporting motor vehicle agencies across the United States. Kyndryl experts will develop reusable code and deployment best practices, apply AI to enhance solution development and testing, and give customers an environment to experience demonstrations of Kyndryl's DMV capabilities. The Lab will also showcase Kyndryl's Cyber Defense Operations Center capability, a next-generation command hub that unifies network and security operations to provide real-time visibility, monitoring and collaborative analysis across complex IT environments. By combining AI-enabled insights, automation and Kyndryl's deep cybersecurity and network expertise, the integrated operating model helps customers accelerate incident response, strengthen resilience and improve overall IT performance.

Kyndryl experts at the AI Innovation Lab in Dallas will also help customers modernize and secure their IT operations and infrastructure to take advantage of the transformative opportunities enabled by Frontier AI models.

The Kyndryl AI Innovation Lab in Dallas joins the company's expanding global lab network – including locations in the United Kingdom and Luxembourg – where Kyndryl experts guide customers through immersive experiences designed to help turn their AI ambitions into reality.

Learn about the Kyndryl AI Innovation Labs.

About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.

Kyndryl Press Contact
[email protected]

Forward-Looking Statements 
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "objectives," "opportunity," "plan," "position," "predict," "project," "should," "seek," "target," "will," "would" and other similar words or expressions or the negative thereof or other variations thereon. All statements other than statements of historical fact, including without limitation statements concerning the Company's plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, are forward-looking statements. These statements do not guarantee future performance and speak only as of the date of this press release. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual outcomes or results may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties, including those described in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K, and may be further updated from time to time in the Company's subsequent filings with the Securities and Exchange Commission.

SOURCE Kyndryl

10-year NASPO ValuePoint® contract helps public agencies nationwide upgrade essential technology and deliver better digital services to residents

, /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced it has been awarded a 10-year NASPO ValuePoint Cloud and Software Solutions contract (ID: LS5006), providing state agencies, higher education, counties, municipalities and other public entities across the United States with easier access to cloud, software and modernization services that support their long-term transformation goals.

State and local government agencies are under increasing pressure to modernize legacy technology, improve digital services, strengthen resiliency, and meet evolving constituent expectations while navigating complex procurement requirements. Participating states can leverage the NASPO ValuePoint contract for easier access to Kyndryl services and a streamlined purchasing framework with consistent terms and conditions and the flexibility to address state-specific requirements through participating addendums.

"State and local agencies need technology partners that understand both mission-critical systems and the realities of public-sector procurement," said Anita Mikus, VP and Managing Director of U.S. State and Local Government, Kyndryl U.S. "The NASPO ValuePoint contract helps agencies move more efficiently from planning to implementation, reducing procurement complexity so they can focus on modernizing critical systems, strengthening resiliency and delivering better services to residents."

The contract expands the scope of Kyndryl services available to participating agencies across software as a service (SaaS), infrastructure as a service (IaaS), platform as a service (PaaS) and on-premises environments. Agencies can leverage this contract for services such as:

Modernizing mission-critical legacy systems: Support mainframe environments or mainframe-as-a-service models for core systems that process benefits, taxes, licensing or public safety workloads, helping improve resiliency while reducing the burden of managing end-of-service infrastructure. Improving high-volume constituent services: Agency-based solutions including modernization of systems behind driver's licenses, vehicle registration or appointment scheduling to improve reliability, reduce delays and make digital services easier for residents to use. Supporting re-entry and social services programs: Improve the databases and case management systems used to connect individuals with services, helping case workers access more accurate information and efficiently coordinate support. Optimizing contact centers and self-service: Contact center-as-a-service capabilities to analyze why residents are calling, identify repeat questions and automate common requests so issues are resolved faster and fewer calls need to reach a live agent. Kyndryl Consult can help agencies assess modernization priorities, develop transformation roadmaps, determine migration readiness and implementation planning using a combination of AI workflows and deep domain expertise underpinned by the Kyndryl Agentic AI Framework. In addition, Kyndryl Bridge, Kyndryl's AI-powered, open integration platform, supports the integration, observation and orchestration of IT environments to provide actionable insights that help organizations run and transform their IT estates.

Agencies interested in learning more can visit the NASPO ValuePoint supplier page or book a consultation with Kyndryl.

About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.

Kyndryl Press Contact
[email protected]

About NASPO
NASPO® is a non–profit association dedicated to advancing public procurement through leadership, excellence, and integrity. It is made up of the directors of the central purchasing offices in each of the 50 states, the District of Columbia, and the territories of the United States. NASPO is an organization that helps its members achieve success as public procurement leaders through the promotion of best practices, education, professional development, research, and innovative procurement strategies. Learn more at www.naspo.org.

About NASPO ValuePoint
NASPO ValuePoint® is the cooperative purchasing division of the National Association of State Procurement Officials (NASPO), facilitating cooperative public procurement solicitations using a Lead State Model®. NASPO aggregates the demand of all 50 states, the District of Columbia, the US territories, their political subdivisions, and other eligible entities, spurring best value, innovation, and competition in the marketplace. NASPO ValuePoint delivers high-value, reliable, and competitively sourced cooperative contracts - offering public entities outstanding prices, favorable terms and conditions, and value-added services. Learn more at www.naspovaluepoint.org.

NASPO®, NASPO ValuePoint®, their logos, and Lead State Model® are trademarks of the National Association of State Procurement Officials.

SOURCE Kyndryl

Kyndryl Agentic AI Framework, paired with Broadcom's VMware Cloud Foundation reinforces private cloud environments and addresses vulnerabilities at AI speed

Skills investment and the Kyndryl Agentic AI Framework will drive customer engagements

, /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced an expanded strategic alliance with Broadcom to deliver end-to-end consulting services for VMware Cloud Foundation (VCF), bringing cloud-like speed, automation and developer experience to private and hybrid cloud environments.

Under the expanded collaboration, Kyndryl and Broadcom are helping enterprises modernize, secure and scale mission-critical systems by building sovereign, AI-ready private clouds that reduce operational complexity, are secure by design and strengthen long-term performance. To support this joint effort, Kyndryl and Broadcom are investing in the skills development of several thousand certified Kyndryl consultants, architects, and delivery specialists to enable agentic workflows.

"Against the backdrop of rising sovereignty demands, enterprises are rationalizing their hybrid and private cloud environments, and they require a pragmatic, outcome-driven approach," said Giovanni Carraro, Global Strategic Alliances Leader at Kyndryl. "By expanding our partnership with Broadcom and investing in VCF skills, we will help customers build modern, resilient, private clouds that enable AI adoption, support data modernization, address the risk of AI-identified vulnerabilities and deliver real business value."

The announcement comes as enterprises confront a rapidly shifting landscape. AI is accelerating innovation, but it is also amplifying risk as Frontier AI models are collapsing zero-day exploits to just hours and posing challenges to regulatory compliance and operations for organizations running critical systems. Sovereignty rules are reshaping where autonomous agents discover and exploit vulnerabilities across application source code, containers, VMs and pipelines at machine speed, without conventional signatures. Modernizing IT infrastructures to defend against fast-moving adversaries requires a private cloud hardened with policy guardrails and secure golden paths before a workload is provisioned, not patched after the fact.

Through the expanded collaboration, Kyndryl provides end-to-end VCF and VMware Tanzu transformation capabilities across advisory and strategy, architecture and design, upgrade and modernization and secure Day-2 operations, spanning virtualized and containerized workloads, while enabling seamless integration with public cloud landing zones as workloads evolve. With deep industry knowledge across financial services, healthcare, manufacturing, transportation, government and regulated industries, Kyndryl's modernization approach maximizes business impact along with technology transformation objectives.

"Our expanded relationship with Kyndryl helps ensure that our mutual customers have the expert guidance required to fully leverage VMware Cloud Foundation as a strategic private cloud platform," said Regan McGrath, President, Americas, Broadcom. "Kyndryl's global delivery capabilities and investment in certified talent provide enterprises with the foundation they need to drive agility, modernize applications and scale AI-driven innovation."

Kyndryl is also focused on helping mutual customers operationalize AI governance across VCF environments by applying the Kyndryl Agentic AI Framework and its policy as code capability to hold agents to approved, deterministic actions informed by business rules and regulatory requirements, so automation stays inside guardrails and drift is contained. This will ensure that AI agents act only within approved, deterministic guardrails shaped by each customer's business rules and regulatory requirements, containing drift while preserving flexibility across models, data and infrastructure.

Combining the VCF private cloud capabilities with Kyndryl's managed services unlocks the value of VCF, enhanced through industrialized operations, automation and AIOps-driven delivery. The result is a unified private cloud environment that runs virtual machine and containerized workloads, including AI inferencing, on a single scalable platform.  IT teams and platform engineers can deliver an agile and robust developer experience, while maintaining the security, control and sovereignty the business requires.

Additionally, Kyndryl's cyber recovery capability – built on VCF's isolated recovery environments (using VMware vDefend), immutable snapshots (using Advanced Cyber Compliance) and orchestrated runbooks (using VCF Automation/Operations) – restores critical operations rapidly and with verified integrity.

Kyndryl is a Pinnacle Partner in the Broadcom Advantage Partner Program and one of the world's largest providers of managed VMware assets. The company was recognized as Broadcom Mainframe Partner of the Year 2025 in South America and in Finland. Kyndryl's VMware services are bolstered by deep expertise and proficiency in the latest skills and technologies companies need to modernize VMware environments and adopt new VCF capabilities to enhance their VMware estate and achieve business objectives.

Learn about Kyndryl's alliance with Broadcom VMware.

About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "objectives," "opportunity," "plan," "position," "predict," "project," "should," "seek," "target," "will," "would" and other similar words or expressions or the negative thereof or other variations thereon. All statements other than statements of historical fact, including without limitation statements concerning the Company's plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, are forward-looking statements. These statements do not guarantee future performance and speak only as of the date of this press release. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual outcomes or results may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties, including those described in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K, and may be further updated from time to time in the Company's subsequent filings with the Securities and Exchange Commission.

Media Contact: Leesa D'Alto, [email protected] 

SOURCE Kyndryl

MarketBeat Week in Review – 02/17 - 02/21Kyndryl NYSE: KD reported fiscal first-quarter revenue of $3.6 billion, down 3% from a year earlier on both a reported and constant-currency basis, while maintaining its full-year outlook as it pursues growth in consulting, hyperscaler partnerships and AI-led modernization services.

For the quarter ended June 30, the company generated adjusted EBITDA of $512 million and an adjusted pre-tax loss of $37 million. Interim Chief Financial Officer Harsh Chugh said earnings and margin declined year over year primarily because of $152 million in workforce rebalancing charges, which reduced adjusted pre-tax income margin by more than four points.

Get Kyndryl alerts:

Kyndryl Soars on AI, Cybersecurity Growth—What’s Next?Kyndryl continued to see growth in the U.S., where revenue increased 5% for a second consecutive quarter. The company exited the period with $14.2 billion in trailing 12-month signings, including $3.9 billion signed during the quarter.

Consulting and Alliance Growth Chairman and Chief Executive Officer Martin Schroeter said Kyndryl Consult and hyperscaler-related activities were helping offset revenue pressure from focus accounts, extended sales cycles and customers purchasing certain IBM hardware and software directly from IBM.

MarketBeat Week in Review – 9/25 - 9/29Kyndryl Consult revenue rose 14% over the last 12 months, while hyperscaler-related revenue streams increased 48%. In the first quarter, Kyndryl generated more than $530 million in hyperscaler-related revenue, bringing the trailing 12-month total to $2 billion.

Schroeter said customers are increasingly seeking help with AI deployment, modernization of hybrid technology estates, cybersecurity and data-residency requirements. He said the company has expanded its AWS alliance to support enterprise adoption of agentic AI and broadened work with Microsoft Azure around cloud architectures and operational requirements. Kyndryl also cited partnerships with Broadcom, Dell, Hewlett Packard Enterprise and Red Hat.

The company signed 40 deals valued at more than $50 million during the past 12 months, including 10 in the first quarter. About 30% of the value of those larger deals came from scope expansions or new customers, compared with 15% in fiscal 2025, according to Schroeter.

Kyndryl Consult signings rose 50% in the first quarter, Schroeter said during the question-and-answer session. New scope and new-logo business represented 30% of large-deal signings, management said. Average projected gross margin on signings over the last 12 months was 25%, according to Chugh. IBM Relationship and Revenue Headwinds Chugh said Kyndryl’s changing commercial relationship with IBM has created a three-point adverse effect on constant-currency revenue performance, alongside earlier effects from the company’s focus-account initiative.

Customers have increasingly chosen to procure some IBM hardware and software directly from IBM while continuing to rely on Kyndryl for services. Chugh said the shift reduces the size of signings and future revenue but does not affect the service scope or margin profile of Kyndryl’s work.

Kyndryl’s spending with IBM was less than $2 billion over the past 12 months, down from an annualized run rate of nearly $4 billion when Kyndryl was spun off. Management said it expects a similar IBM-related revenue headwind through the remainder of fiscal 2027.

Schroeter said the company continues to work closely with IBM, particularly in helping customers modernize technology environments that may include mainframes, private cloud, public cloud and software-as-a-service applications. He said Kyndryl has between 8,000 and 9,000 mainframe experts and runs more than half of the world’s outsourced mainframes.

Workforce Actions, Cash Flow and Outlook Kyndryl is taking workforce rebalancing actions in response to lower-than-normal voluntary attrition and SG&A costs. Savings from those actions are expected to begin in the second half of fiscal 2027. The company expects about $200 million in workforce rebalancing charges during the year, offset by a similar amount of savings, with annualized savings of $400 million to $500 million expected in fiscal 2028.

Schroeter said Kyndryl is using automation and AI through its Kyndryl Bridge platform and Advanced Delivery initiative to improve productivity and redeploy workers into higher-value roles. He said the company has about 1,800 agents in its infrastructure operations and has redeployed tens of thousands of employees since beginning its automation efforts.

First-quarter free cash flow was an outflow of $401 million, reflecting seasonal working-capital timing, higher payments associated with multiyear renewals and software subscriptions, and lower billing and collections. Kyndryl ended the quarter with $2.1 billion in cash and a net leverage ratio of 0.8 times. It repurchased 5 million shares for $64 million during the quarter.

The company reaffirmed its fiscal 2027 outlook for adjusted pre-tax income of $600 million to $700 million, free cash flow of $400 million to $500 million, and constant-currency revenue ranging from flat to down 2%. Management expects revenue trends to improve each quarter and anticipates stronger revenue in the second half than the first half.

For fiscal 2028, Kyndryl continues to target more than $1.2 billion in adjusted pre-tax income and $1 billion in free cash flow, based on low-single-digit constant-currency revenue growth.

Finance Leadership Transition Schroeter also said Chugh has decided to retire after serving as interim CFO for the past six months. Chugh will remain an executive adviser to Schroeter and the leadership team. Ellen Johnson, previously announced as the incoming CFO, was scheduled to begin in the role on Aug. 6.

About Kyndryl (NYSE:KD)Kyndryl NYSE: KD is a global managed infrastructure services provider formed in November 2021 through the spin-off of IBM's Managed Infrastructure Services business. The company designs, builds, manages and modernizes critical information technology systems for enterprises worldwide. Kyndryl's core offerings include cloud migration and management, network and edge computing solutions, digital workplace services and IT resiliency and security capabilities.

With a workforce of approximately 90,000 professionals and operations in more than 60 countries, Kyndryl serves clients across a broad range of industries, including financial services, telecommunications, healthcare, manufacturing and retail.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Should You Invest $1,000 in Kyndryl Right Now?Before you consider Kyndryl, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Kyndryl wasn't on the list.

While Kyndryl currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.

Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.

Get This Free Report

Revenues for the quarter ended June 30, 2026 total $3.6 billion, pretax loss is $69 million, and net loss is $55 million  Adjusted EBITDA is $512 million, adjusted pretax loss is $37 million, and adjusted net loss is $26 million  Actions to streamline operations resulted in $152 million of workforce rebalancing charges, which are included in reported and adjusted results Company reaffirms fiscal 2027 outlook for revenue, earnings and free cash flow , /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today released financial results for the quarter ended June 30, 2026, the first quarter of its 2027 fiscal year.    

"Our first quarter results reflected strong momentum in signings, supported by strength in Kyndryl Consult and hyperscalers, with an increasing demand for AI-led modernization solutions," said Chairman and Chief Executive Officer Martin Schroeter.  "We're encouraged by the progress we're making to improve business fundamentals and remain focused on driving consistent execution and delivering our fiscal 2027 and multi-year objectives."

Results for the Fiscal First Quarter Ended June 30, 2026

For the first quarter, Kyndryl reported revenues of $3.6 billion, down 3% year-over-year on a reported basis and down 3% in constant currency.  The Company reported a pretax loss of $69 million, compared to pretax income of $92 million in the prior-year period.  Net loss was $55 million, or ($0.25) per diluted share, in the quarter, compared to net income of $56 million, or $0.23 per diluted share, in the prior-year period.  The first quarter 2027 results include workforce rebalancing charges of $152 million.  Cash used from operations was $310 million, compared to $124 million in the prior-year period, primarily due to timing of working capital, including higher software payments and lower billings and collections, partially offset by lower incentive compensation payments.

Adjusted pretax loss was $37 million, compared to adjusted pretax income of $128 million in the prior-year period. Adjusted net loss was $26 million, or ($0.12) per diluted share, compared to adjusted net income of $90 million, or $0.37 per diluted share, in the prior-year period.  Adjusted EBITDA was $512 million compared to $647 million in the prior-year period.  The first quarter 2027 results include workforce rebalancing charges of $152 million.  Free cash flow was a use of $401 million in the quarter, compared to a use of $222 million in the prior year, consistent with drivers of cash used from operations as described above.  See "Non-GAAP Metric Definitions and Reconciliations."    

Highlights

Signings – In the trailing twelve months signings were $14.2 billion, including $3.9 billion signed in the first quarter, supported by strength in the United States segment. Kyndryl signed 40 customer contracts exceeding $50 million each in the last twelve months, of which 10 were signed in the first quarter. Kyndryl Consult revenue – In the first quarter, Kyndryl Consult revenues grew 10% year-over-year. Over the last twelve months, Kyndryl Consult revenues were $3.6 billion, a 14% increase year-over-year. Kyndryl Consult signings were $4.4 billion over the last twelve months, an 8% increase year-over-year. Hyperscaler-related revenue – In the first quarter, hyperscaler-related revenues of more than $530 million grew 34% year-over-year, exiting the quarter at an annualized revenue run-rate of more than $2.1 billion. AI-led modernization – During the quarter, Kyndryl expanded its AI capabilities to support AI-led modernization with the launch of Kyndryl AI Orchestration for Business and a patented agentic AI capability in Kyndryl Bridge. Kyndryl also released its People Readiness Report, which found that 57% of enterprises have embedded AI in core business processes, but only 32% have achieved their AI goals, underscoring the opportunity to help enterprises realize greater value from their AI investments. Actions to streamline operations – In the first quarter, Kyndryl incurred $152 million of charges related to workforce-rebalancing actions. The Company continues to expect approximately $200 million of charges in fiscal 2027. These workforce rebalancing efforts, once completed, are expected to result in annualized run-rate operating expense savings of approximately $400 to $500 million in the Company's fiscal year 2028. Share repurchases – In the first quarter, the Company repurchased 5.0 million shares of its common stock at a cost of $64 million. Since the authorization of its share repurchase program in November 2024, the Company has bought back 19.3 million shares for $462 million, or 8% of its shares outstanding. Reaffirms Fiscal Year 2027 Outlook

Kyndryl reaffirms its outlook for its fiscal 2027, which runs from April 2026 to March 2027:

Adjusted pretax income of $600 to $700 million Consistent with our definition of adjusted pretax income since fiscal 2025, this includes workforce rebalancing charges Free cash flow of $400 to $500 million Constant-currency revenue flat to down 2% See "Non-GAAP Metric Definitions and Reconciliations."

Earnings Webcast 

Kyndryl's earnings call for the first fiscal quarter is scheduled to begin at 8:30 a.m. ET on August 5, 2026.  The live webcast can be accessed by visiting investors.kyndryl.com on Kyndryl's investor relations website.  A slide presentation will be made available on Kyndryl's investor relations website before the call on August 5, 2026.  Following the event, a replay will be available via webcast for twelve months at investors.kyndryl.com.

About Kyndryl

Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries.  As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day.  For more information, visit www.kyndryl.com.

Forward-Looking and Cautionary Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  All statements other than statements of historical fact included in this press release, including statements concerning the Company's plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, including without limitation the outlook and financial objectives in this press release (which does not assume any future acquisitions or divestitures), are forward-looking statements.  Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "objectives," "opportunity," "plan," "position," "predict," "project," "should," "seek," "target," "will," "would" and other similar words or expressions or the negative thereof or other variations thereon.  Forward-looking statements are based on the Company's current assumptions and beliefs regarding future business and financial performance. 

The Company's actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others: failure to attract new customers, retain existing customers or sell services to customers; failure to meet growth and productivity objectives and maintain our capital allocation strategy; competition; impacts of relationships with critical suppliers and partners; failure to address and adapt to technological developments and trends; inability to attract and retain key personnel and other skilled employees; impact of economic, geopolitical, public health and other conditions; damage to the Company's reputation and impact on the Company and our stock price resulting from negative publicity; inability to accurately estimate the cost of services and the timeline for completion of contracts; service delivery issues; the Company's ability to successfully manage acquisitions and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt levels; the Company's ability to refinance maturing debt on favorable terms in a timely manner, or at all, and risks related to the Company's access to capital and credit markets; failure of the Company's intellectual property rights to prevent competitive offerings and the failure of the Company to obtain, retain and extend necessary licenses; the impairment of our goodwill or long-lived assets; risks relating to cybersecurity, data governance and privacy; risks relating to non-compliance with legal and regulatory requirements and changes in laws, regulations and policies in the U.S. and countries where the Company and its customers do business, including with respect to tariffs, taxes and other controls on imports or exports; adverse effects from tax matters; risks related to legal and regulatory claims, suits, investigations, proceedings and other matters, and consequences relating thereto; the Company's ability to remediate, and the timing and costs related to the remediation of, material weaknesses in internal control over financial reporting, as well as the Company's ability to maintain effective controls in the future; the impact of changes in market liquidity conditions and customer credit risk on receivables; the Company's pension plans; the impact of currency fluctuations; and risks related to the Company's common stock and the securities market.  

Additional risks and uncertainties include, among others, those risks and uncertainties described in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2026, as such factors may be updated from time to time in the Company's subsequent filings with the Securities and Exchange Commission.  Any forward-looking statement in this press release speaks only as of the date on which it is made.  Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In this release, certain amounts may not add due to the use of rounded numbers; percentages presented are calculated based on the underlying amounts.  Forecasted amounts are based on currency exchange rates as of July 2026.

Non-GAAP Financial Measures

In an effort to provide investors with additional information regarding its results, the Company has provided certain metrics that are not calculated based on generally accepted accounting principles (GAAP), such as constant-currency results, adjusted EBITDA, adjusted pretax income (loss), adjusted net income (loss), adjusted EPS, adjusted EBITDA margin, adjusted pretax margin, adjusted net margin, net debt and free cash flow.  Such non-GAAP metrics are intended to supplement GAAP metrics, but not to replace them.  The Company's non-GAAP metrics may not be comparable to similarly titled metrics used by other companies.  Definitions and additional information about our calculation of non-GAAP metrics and reconciliations of non-GAAP metrics for historical periods to GAAP metrics are included in the tables in this release.

A reconciliation of forward-looking non-GAAP financial information is not included in this release because the Company is unable to predict with reasonable certainty some individual components of such reconciliation without unreasonable effort.  These items are uncertain, depend on various factors and could have a material impact on future results computed in accordance with GAAP.  

Investor Contact:  
[email protected] 

Media Contact:  
[email protected]  

Table 1

CONSOLIDATED INCOME STATEMENT

(in millions, except per share amounts)

Three Months Ended June 30,

2026

2025

Revenues                                                                                                   

$

3,618

$

3,743

Cost of services                                                                                          

$

2,842

$

2,947

Selling, general and administrative expenses                                     

668

646

Workforce rebalancing charges                                                              

152

25

Transaction-related costs (benefits)                                                       

(38)

—

Impairment expense                                                                                  

38

—

Interest expense                                                                                         

34

19

Other expense (income)                                                                           

(10)

13

Total costs and expenses                                                                      

$

3,687

$

3,651

Income (loss) before income taxes                                                     

$

(69)

$

92

Provision for income taxes                                                                    

(14)

36

Net income (loss)                                                                                     

$

(55)

$

56

Earnings (loss) per share data                                                             

Basic earnings (loss) per share                                                              

$

(0.25)

$

0.24

Diluted earnings (loss) per share                                                           

(0.25)

0.23

Weighted-average basic shares outstanding                                       

220.6

230.2

Weighted-average diluted shares outstanding                                    

220.6

239.1

Table 2

SEGMENT RESULTS
AND SELECTED BALANCE SHEET INFORMATION

(dollars in millions)

Three Months Ended June 30,    

Year-over-Year Growth

As

Constant

Segment Results                                                  

2026

2025

Reported

Currency

Revenue                                                              

United States                                                       

$

954

$

911

5 %

5 %

Japan                                                                    

534

578

(8 %)

2 %

Principal Markets                                                

1,262

1,356

(7 %)

(8 %)

Strategic Markets                                                

868

898

(3 %)

(8 %)

     Total revenue                                                 

$

3,618

$

3,743

(3 %)

(3 %)

Adjusted EBITDA                                               

United States                                                       

$

220

$

196

Japan                                                                    

109

115

Principal Markets                                                

151

197

Strategic Markets                                                

62

163

Corporate and other                                           

(30)

(26)

      Total adjusted EBITDA                                 

$

512

$

647

June 30,

March 31,

Balance Sheet Data 

2026

2026

Cash and equivalents                                     

$

2,104

$

2,623

Debt (short-term and long-term)

4,070

4,089

Table 3

CONSOLIDATED STATEMENT OF CASH FLOWS

(dollars in millions)

Three Months Ended June 30,

2026

2025

Cash flows from operating activities:                                                                               

Net income (loss)                                                                                                                     

$

(55)

$

56

Adjustments to reconcile net income to cash provided by operating activities:           

Depreciation and amortization                                                                                              

Depreciation of property, equipment and capitalized software                                

183

191

Depreciation of right-of-use assets                                                                               

68

73

Amortization of transition costs and prepaid software                                               

331

308

Amortization of capitalized contract costs                                                                   

94

106

Amortization of acquisition-related intangible assets                                                

6

7

Stock-based compensation                                                                                                   

21

24

Deferred taxes                                                                                                                          

(50)

(10)

Net (gain) loss on asset sales and other                                                                             

6

—

Change in operating assets and liabilities:                                                                        

Right-of-use assets and liabilities (excluding depreciation)                                     

(81)

(88)

Workforce rebalancing liabilities                                                                                   

132

3

Current accounts receivable                                                                                          

18

114

Lease and other receivables                                                                                         

(51)

(67)

Accounts payable                                                                                                            

(320)

(269)

Taxes                                                                                                                                  

(32)

27

Deferred transition costs and prepaid software (excluding amortization)1

(246)

(1,259)

Capitalized contract costs (excluding amortization)                                                  

(108)

(122)

Other assets and other liabilities1                                                                                 

(228)

781

Net cash provided by (used in) operating activities                                                     

$

(310)

$

(124)

Cash flows from investing activities:                                                                               

Capital expenditures                                                                                                               

$

(149)

$

(143)

Proceeds from disposition of property and equipment                                                     

58

45

Acquisitions and divestitures, net of cash acquired                                                          

31

1

Other investing activities, net                                                                                                 

11

22

Net cash used in investing activities                                                                                

$

(49)

$

(74)

Cash flows from financing activities:                                                                               

Debt repayments                                                                                                                     

$

(52)

$

(36)

Common stock repurchases                                                                                                  

(64)

(62)

Common stock repurchases for tax withholdings                                                              

(13)

(67)

Other financing activities, net                                                                                                

(23)

(5)

Net cash used in financing activities                                                                                

$

(152)

$

(170)

Effect of exchange rate changes on cash, cash equivalents and restricted cash       

$

(4)

$

46

Net change in cash, cash equivalents and restricted cash                                             

$

(515)

$

(323)

Cash, cash equivalents and restricted cash at beginning of period                              

$

2,626

$

1,789

Cash, cash equivalents and restricted cash at end of period                                    

$

2,111

$

1,466

Supplemental data                                                                                                                 

Income taxes paid, net of refunds received                                                                        

$

76

$

67

Interest paid on debt                                                                                                               

$

50

$

39

_______________ 

1

Includes $925 million non-cash offsetting increases in deferred costs and other liabilities related to an extended and amended multiyear software license in the three months ended June 30, 2025.        

Table 4
DEFINITIONS AND NON-GAAP RECONCILIATIONS
(dollars in millions, except signings) 

Non-GAAP Metrics

We report our financial results in accordance with GAAP.  We also present certain non-GAAP financial measures to provide useful supplemental information to investors.  We provide these non-GAAP financial measures as we believe it enhances investors' visibility to management decisions and their impacts on operational performance; enables better comparison to peer companies; and allows us to provide a long-term strategic view of the business going forward. Moreover, we use certain of these non-GAAP financial metrics in measuring performance under our executive compensation plans.

Constant-currency information compares results between periods as if exchange rates had remained constant period over period.  We define constant-currency revenues as total revenues excluding the impact of foreign exchange rate movements and use it to determine the constant-currency revenue growth on a year-over-year basis.  Constant-currency revenues are calculated by translating current period revenues using corresponding prior-period exchange rates.

Adjusted pretax income (loss) is defined as pretax income (loss) excluding transaction-related costs and benefits, charges related to ceasing to use leased / fixed assets, charges related to lease terminations, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, amortization of acquisitionrelated intangible assets, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries.  Adjusted pretax margin is calculated by dividing adjusted pretax income (loss) by revenue.

Adjusted EBITDA is defined as net income (loss) excluding net interest expense, income taxes, depreciation and amortization (excluding depreciation of right-of-use assets and amortization of capitalized contract costs), charges related to ceasing to use leased / fixed assets, charges related to lease terminations, transaction-related costs and benefits, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries.  Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.

Adjusted net income (loss) is defined as adjusted pretax income (loss) less the reported provision for income taxes, minus or plus the tax effect of the non-GAAP adjustments made to calculate adjusted pretax income (loss), and excluding exceptional items impacting the reported provision for income taxes.  Adjusted net margin is calculated by dividing adjusted net income (loss) by revenue. 

Adjusted earnings (loss) per share (EPS) is defined as adjusted net income (loss) divided by diluted weighted average shares outstanding to reflect shares that are dilutive or anti-dilutive based on the amount of adjusted net income (loss).  The weighted average common shares outstanding used to calculate adjusted earnings (loss) per share will differ from such shares used to calculate diluted earnings (loss) per share (GAAP) when the inclusion of dilutive shares has an antidilutive effect for one calculation but not for the other.

Free cash flow is defined as cash flows from operating activities (GAAP), less net capital expenditures.  Management uses free cash flow as a measure to evaluate our operating results, plan strategic investments and assess our ability and need to incur and service debt.  We believe this metric is useful supplemental financial measures to aid investors in assessing our ability to pursue business opportunities and investments and to service our debt.  Free cash flow is a financial measure that is not recognized under U.S. GAAP and should not be considered as an alternative to cash flows from operations or liquidity derived in accordance with U.S. GAAP.  As part of the Company's ongoing cash and commercial management strategy with customers and suppliers and as previously disclosed, the Company's standard practice since the time of the Company's spin-off from International Business Machines Corporation is to actively manage the Company's working capital, including accounts receivables and accounts payables.  This includes optimizing payment terms and conditions, accelerating certain cash receipts and delaying certain cash payments (including deferring vendor payments quarter to quarter), and undertaking other discretionary cash and working capital management initiatives.  The magnitude of these practices (including deferrals) has varied from quarter to quarter and impacted the Company's cash flows, including positively in certain periods.  The effects of these practices have been and are reflected in the Company's accounts payable, accounts receivable and cash flow balance, which are accounted for in accordance with GAAP.  The Company's working capital and cash flows have also reflected the impact of accrued contract costs in certain periods due to the timing of vendor billings.  The Company may, from time to time, revise or adapt the Company's cash and working capital management practices as it deems appropriate.  Free cash flow for the three months ended June 30, 2026 and 2025, as well as the free cash flow guidance included in this press release or the Company's other earnings materials, reflect the historical and expected application of these practices.

Other Metrics

Signings are defined by Kyndryl as an initial estimate of the value of a customer's commitment under a contract.  The calculation involves estimates and judgments to gauge the extent of a customer's commitment.  We calculate this based on various considerations including the type and duration of the agreement as well as the presence of termination charges or wind-down costs.  Contract extensions and increases in scope are treated as signings only to the extent of the incremental new value.  Signings can vary over time due to a variety of factors including, but not limited to, the timing of signing a small number of larger outsourcing contracts, as well as the length of those contracts.  Signings should not be considered a comprehensive measure of future revenue, and the conversion of signings into revenue may vary based on the types of services and solutions, customer decisions and other factors, which may include, but are not limited to, macroeconomic environment or external events.  Management uses signings to monitor the performance of the business, as a measure of customer engagement and our ability to drive growth.

Hyperscaler-related annualized revenue run-rate is a metric that we define as revenue for the most recently completed fiscal quarter multiplied by four. Management believes this metric provides investors with an additional perspective regarding the current revenue-generating capacity based on recent operating performance and to assess business momentum over time. Hyperscaler-related annualized revenue run-rate is not a forecast, projection, or prediction of future revenue and should not be viewed as an indication of expected revenue for any future period. 

Reconciliation of net income (loss) 
to adjusted pretax income (loss),
adjusted EBITDA, adjusted net
income (loss) and adjusted EPS

Three Months Ended June 30, 

(in millions, except per share amounts)

2026

2025

Net income (loss) (GAAP)                                                                             

$

(55)

$

56

Provision for income taxes                                                                            

(14)

36

Pretax income (loss) (GAAP)                                                                        

$

(69)

$

92

Transaction-related costs (benefits)1

(38)

—

Stock-based compensation expense                                                            

21

24

Amortization of acquisition-related intangible assets                                     

6

7

Impairment expense2

38

—

Other adjustments3 

5

5

Adjusted pretax income (loss) (non-GAAP)                                                  

$

(37)

$

128

Interest expense                                                                                            

34

19

Depreciation of property, equipment and capitalized software                      

183

191

Amortization of transition costs and prepaid software                                   

331

308

Adjusted EBITDA (non-GAAP)                                                                      

$

512

$

647

Net income (loss) margin                                                                               

(1.5) %

1.5 %

Adjusted EBITDA margin                                                                               

14.2 %

17.3 %

Adjusted pretax income (loss) (non-GAAP)                                                  

$

(37)

$

128

Provision for income taxes (GAAP)                                                               

14

(36)

Tax effect of non-GAAP adjustments                                                            

(4)

(3)

Adjusted net income (loss) (non-GAAP)                                                       

$

(26)

$

90

Diluted weighted average shares outstanding for calculating adjusted EPS 

220.6

239.1

Diluted earnings (loss) per share (GAAP)                                                     

$

(0.25)

$

0.23

Adjusted earnings (loss) per share (non-GAAP)  

$

(0.12)

$

0.37

_______________

1

Kyndryl's reported results for the three months ended June 30, 2026 include a transaction-related gain of $40 million from the sale of a digital solutions subsidiary in the Principal Markets segment.

2

Kyndryl's reported results for the three months ended June 30, 2026 include an impairment expense for the sale of a facility in the United States.

3

Other adjustments represent pension costs other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, and currency impacts of highly inflationary countries. 

Reconciliation of cash flows from operations   

Three Months Ended June 30,

to free cash flow (in millions)                                                                     

2026

2025

Cash flows from operating activities (GAAP)                                                 

$

(310)

$

(124)

Less: Net capital expenditures1                                                                 

(91)

(97)

Free cash flow (non-GAAP)2                                                                          

$

(401)

$

(222)

_______________

1

Net capital expenditures consists of capital expenditures less proceeds from dispositions of property and equipment.

2

Free cash flow for the three months ended June 30, 2026 includes transaction-related payments of $1 million and significant litigation payments of $11 million.  See "Non-GAAP Metric Definitions and Reconciliations" for more information about our calculation of free cash flow.

Three Months Ended June 30,

Last Twelve Months Ended June 30, 

Signings (in billions)

2026

2025

2026

2025

Signings1

$

3.9

$

3.2

$

14.2

$

18.3

_______________ 

1

Currency movements did not have a material impact on the year-over-year change in the three-month period ended June 30, 2026. Currency movements favorably impacted the year‑over‑year change by approximately 2 points in the twelve‑month period ended June 30, 2026. 

SOURCE Kyndryl

In the latest close session, Kyndryl Holdings, Inc. (KD - Free Report) was down 3.39% at $11.97. The stock trailed the S&P 500, which registered a daily loss of 0.28%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.

The company's shares have seen an increase of 7.46% over the last month, surpassing the Business Services sector's gain of 3.35% and the S&P 500's gain of 1.64%.

The investment community will be paying close attention to the earnings performance of Kyndryl Holdings, Inc. in its upcoming release. The company is slated to reveal its earnings on August 5, 2026. The company is expected to report EPS of $0.03, down 91.89% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $3.68 billion, indicating a 1.74% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.9 per share and a revenue of $14.76 billion, representing changes of +30.14% and -2.19%, respectively, from the prior year.

Any recent changes to analyst estimates for Kyndryl Holdings, Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Kyndryl Holdings, Inc. is carrying a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Kyndryl Holdings, Inc. is presently being traded at a Forward P/E ratio of 6.52. For comparison, its industry has an average Forward P/E of 17.29, which means Kyndryl Holdings, Inc. is trading at a discount to the group.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 110, finds itself in the top 45% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

, /PRNewswire/ -- Schubert Jonckheer & Kolbe LLP advises Kyndryl Holdings, Inc. (NYSE: KD) investors that the firm is investigating potential legal claims arising from alleged false and misleading statements about the company's cash management practices and the effectiveness of its internal controls. Current shareholders are encouraged to contact the firm here: http://www.classactionlawyers.com/kyndryl.

On February 9, 2026, Kyndryl announced that following its receipt of voluntary document requests from the U.S. Securities and Exchange Commission, it was reviewing its cash management practices, related disclosures, the effectiveness of its internal controls over financial reporting, and certain other matters. Kyndryl also disclosed that it would not be able to timely file its quarterly report with the SEC for the third quarter of 2026 and that it anticipated reporting material weaknesses in the company's internal controls over financial reporting. Kyndryl further announced that its CFO and General Counsel had both departed the company, effective immediately. Kyndryl's stock price fell 55% following these disclosures.

We are investigating potential wrongdoing by Kyndryl's directors and officers in connection with these allegations.

If you own Kyndryl stock, you may have legal options. Visit http://www.classactionlawyers.com/kyndryl to learn more.

About Schubert Jonckheer & Kolbe LLP
Schubert Jonckheer & Kolbe represents consumers in class actions and shareholders in derivative actions against corporate officers and directors. The firm is based in San Francisco and, with the help of co-counsel, litigates cases nationwide.

Contact
Dustin L. Schubert
[email protected]
Tel: 415-788-4220

SOURCE Schubert Jonckheer & Kolbe LLP

, /PRNewswire/ -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating whether certain officers and directors of Kyndryl Holdings, Inc. (NYSE: KD) breached their fiduciary duties to shareholders. 

According to a federal securities lawsuit, Kyndryl Holdings misrepresented or failed to disclose that: (1) certain members of executive management engaged in systematic manipulation of the Company's free cash flow metrics through the deliberate postponement of vendor payments from one fiscal quarter to the next; (2) as a consequence thereof, Kyndryl falsely represented its reported free cash flow metrics as indicative of the quality and long-term sustainability of its earnings and revenue growth, when in reality such cash generation was contingent upon undisclosed and inherently unsustainable cash management practices; (3) the Company's procedures governing financial disclosures, its accounting methodologies, and its internal controls over financial reporting were materially inadequate and deficient; and (4) by reason of the foregoing, Kyndryl's business operations, financial condition, and prospects for achieving profitable growth were materially worse than had been publicly represented to investors.

If you currently own KD and purchased prior to August 1, 2024 please contact Sophia Anne Silayan by email at [email protected] or call (833) 672-0814. Kuehn Law pays all case costs and does not charge its investor clients. Shareholders should contact the firm immediately as there may be limited time to enforce your rights. 

Why Your Participation Matters:

As a shareholder your voice matters, and by getting involved, you contribute to the integrity and fairness of the financial markets. Your investment. Your voice. Your future.™ 

For additional information, please visit Shareholder Derivative Litigation - Kuehn Law.

Attorney advertising. Prior results do not guarantee similar outcomes.

Contacts:
Kuehn Law, PLLC
Justin Kuehn, Esq.
53 Hill Street, Suite 605
Southampton, NY 11968
[email protected]
(833) 672-0814

SOURCE Kuehn Law, PLLC