
Kyndryl Holdings (KD) Stock Forecast & Price Target
Kyndryl Holdings (KD) Analyst Ratings
Bulls say
Kyndryl Holdings Inc. is poised for a positive outlook, as management anticipates a notable increase in adjusted pretax income by 30-50% year-over-year in F1Q26. The company's Kyndryl Consult segment has shown remarkable growth, with revenues rising 29% year-over-year to $3 billion in FY25, and expectations for further growth to 85% in FY27, supported by a strategic focus on AI, applications, and cybersecurity. Additionally, Kyndryl has enhanced profitability since its spin-off, with adjusted EBITDA margins reaching 16.7% in FY25, indicating effective margin expansion linked to a higher proportion of revenue from post-spin signings.
Bears say
Kyndryl Holdings Inc. faces several fundamental challenges that contribute to a negative outlook, including anticipated slower revenue growth through FY26, primarily due to weakened client demand and delays in project signings. The company is also exposed to a deflationary pricing environment that threatens revenue margins, compounded by potential cybersecurity risks that could disrupt service delivery. Furthermore, Kyndryl may struggle with increased labor costs amid inflation, impacting its ability to retain skilled personnel, while its valuation multiples appear subdued compared to historical averages, indicating market skepticism about its future performance.
This aggregate rating is based on analysts' research of Kyndryl Holdings and is not a guaranteed prediction by Public.com or investment advice.
Kyndryl Holdings (KD) Analyst Forecast & Price Prediction
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