Kyndryl Holdings Inc. research snapshot
KD AI stock analysis as of the August 4, 2026 data cutoff reads Kyndryl Holdings as a stabilizing turnaround that still carries material accounting and balance sheet overhangs. The stock closed at $13.92 on August 3, 2026, up 0.37 or 2.73% from the $13.55 July 31 close, after opening at $13.94 and trading in a session range of $13.89 to $14.19 on the real-time quote, with the daily history table confirming the same $13.92 close and an after-hours quote of $13.78, down 0.14 or 1.01%, carrying a market capitalization near $3.07 billion, matching the $13.92 price times 220.52 million shares outstanding. Fiscal 2026, ended March 31, 2026, delivered revenue of $15.1 billion, flat on a reported basis and down 3% in constant currency, pretax income of $414 million, net income of $198 million or $0.85 per diluted share, adjusted pretax income of $581 million up 21%, adjusted EBITDA of $2.7 billion up 6%, and free cash flow of $406 million. Management provided fiscal 2027 guidance of adjusted pretax income of $600 million to $700 million and free cash flow of $400 million to $500 million with constant-currency revenue flat to down 2%. The recovery story is visible in hyperscaler-related revenue of $1.9 billion up 59% and Kyndryl Consult revenue of $3.5 billion up 18%, but the market is also pricing the material weaknesses in internal control over financial reporting that the company is remediating toward March 31, 2027, an active law firm investigation of officers and directors announced August 1, 2026, the pending transition to new CFO Ellen Johnson on August 6, 2026, a debt-to-equity ratio near 3.84, negative working capital, and the July 25, 2026 jump in short interest to 14.68% of shares outstanding. The stock trades at about 16.4x trailing GAAP earnings, 7.4x forward earnings, and 0.20x sales, below the analyst consensus target of $13.60, and it rallied roughly 31% off the June low near $10.62. This page is informational research and is not investment advice.
Current price
$13.92 at the August 3, 2026, 4:00 PM EDT market close, up 0.37 or 2.73% from the $13.55 July 31 close, after opening at $13.94 and trading in a session range of $13.89 to $14.19 on the real-time quote, with the daily history table confirming the same $13.92 close on volume near 4.42 million shares and an after-hours quote of $13.78, down 0.14 or 1.01%
Market cap
$3.07 billion reported by StockAnalysis.com at the August 3, 2026 market close, matching the $13.92 price times 220.52 million shares outstanding, with the record date for the July 30, 2026 annual meeting listing 220,517,208 shares
AI score
45 / 100
Rating
Improving turnaround with accounting and leverage overhang
Trend status
Short-term uptrend above the 20-day and 50-day moving averages, still below the 200-day, after a 31% rebound off the June low
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Kyndryl is the world largest IT infrastructure services provider, designing, building, managing, and modernizing mission-critical enterprise systems across cloud, core enterprise, applications, data and AI, digital workplace, security, and network services, with fiscal 2026 revenue of $15.1 billion and 72,000 employees. | Medium-high |
| Moat | Moats are modest and driven by scale, mission-critical relationships, multi-vendor expertise, the Kyndryl Bridge automation platform, and hyperscaler and partner ecosystems. Switching costs exist for managed infrastructure but cloud migration and intense competition from IBM, Accenture, Cognizant, and the hyperscalers pressure the legacy base. | Low-Medium |
| Management | CEO Martin Schroeter remains, but fiscal 2026 brought a finance leadership shakeup: interim CFO Harsh Chugh and interim controller Bhavna Doegar were appointed February 5, 2026, and Ellen Johnson, the former Interpublic CFO, was appointed CFO on July 1, 2026 and assumes the role August 6, 2026, with Andrew Bonzani joining as General Counsel on July 6, 2026, in part to remediate material weaknesses in internal control over financial reporting. | Low-Medium |
| Financial trend | Fiscal 2026 revenue was $15.1 billion, flat on a reported basis and down 3% in constant currency, net income was $198 million versus $252 million in fiscal 2025, adjusted pretax income rose 21% to $581 million, adjusted EBITDA rose 6% to $2.7 billion, and free cash flow was $406 million, with guidance for fiscal 2027 of $600 million to $700 million adjusted pretax income. | Medium |
| Valuation | At the $13.92 price, KD trades at about 16.4x trailing GAAP earnings, 7.4x forward earnings on adjusted estimates, 2.64x book value, and 0.20x sales, with enterprise value of $5.40 billion, below the $13.60 analyst consensus target but with the forward multiple dependent on adjusted rather than GAAP earnings. | Medium |
| Technical trend | KD closed at $13.92 on August 3, 2026, up 2.73%, above the 20-day moving average near $12.45 and the 50-day near $12.01 but below the 200-day near $17.86, after a roughly 31% rebound off the June low near $10.62, with 14-day RSI near 66.7 on StockAnalysis.com statistics. | Medium |
| Risk level | High risk from material weaknesses in internal control over financial reporting being remediated toward March 31, 2027, an active August 1, 2026 law firm investigation of officers and directors, total debt of $4.956 billion against $2.623 billion cash, negative working capital, $700 million of senior notes due October 2026, customer concentration in legacy infrastructure, and short interest of 14.68% of shares outstanding. | Medium-high |
| AI confidence | Medium confidence for the business map, fiscal 2026 financials, balance sheet, and valuation math that cross-validated across StockAnalysis.com, Macrotrends, the fiscal 2026 Form 10-K, and the earnings release. Lower confidence for the turnaround prognosis given the accounting remediation, the investigation, and the reliance on adjusted earnings. | Medium data confidence |
| Investment certainty | Low certainty. Kyndryl is a leveraged restructuring story where the outcome depends on execution against fiscal 2027 guidance, debt refinancing, control remediation, and hyperscaler growth. This page provides a framework, not a buy or sell instruction. | Low |
KD AI stock forecast
The KD AI stock forecast uses scenario ranges around the $13.92 August 3, 2026 close and the fiscal 2027 adjusted EPS consensus of about $1.89. It does not claim that AI can predict a specific future price. The bullish case requires revenue stabilization or growth in constant currency, margin expansion, hyperscaler and agentic AI momentum, successful debt refinancing, and resolution of the control and investigation issues. The base case assumes modest adjusted EPS growth toward consensus with continued balance sheet and governance overhang. The bearish case assumes constant-currency revenue keeps declining, refinancing costs rise, the investigation expands, or margin gains stall.
$22 to $28
More likely if constant-currency revenue stabilizes, hyperscaler-related revenue keeps growing well above the $1.9 billion fiscal 2026 level, Kyndryl Consult keeps compounding near 18%, management delivers the $600 million to $700 million adjusted pretax income range, debt is refinanced on reasonable terms, material weaknesses are remediated by March 31, 2027, and the market assigns a double-digit multiple to growing adjusted EPS.
$14 to $17
More likely if Kyndryl lands near the fiscal 2027 adjusted pretax income midpoint of about $650 million, constant-currency revenue declines 0% to 2% as guided, adjusted EPS approaches the $1.89 consensus, and the stock holds near 7x to 8x forward adjusted earnings with the accounting and investigation overhang keeping the multiple capped.
$8 to $11
More likely if constant-currency revenue decline accelerates as clients migrate legacy workloads to hyperscalers, the $700 million notes due October 2026 are refinanced at high cost or force deleveraging, material weaknesses are not remediated on time, the investigation produces adverse findings, or GAAP profitability deteriorates toward breakeven.
KD AI technical analysis
KD AI technical analysis as of the August 4, 2026 data cutoff shows a short-term uptrend that has broken above the 20-day and 50-day moving averages after a roughly 31% rebound off the June low. The stock closed at $13.92 on August 3, 2026, above the 20-day average near $12.45 and the 50-day near $12.01 but below the 200-day near $17.86, with 14-day RSI near 66.7 on StockAnalysis.com statistics. Because this page does not fetch request-time market data, traders should confirm levels on a live chart before acting.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $13.92 | StockAnalysis.com real-time quote at the August 3, 2026, 4:00 PM EDT market close, up 0.37 or 2.73% from the $13.55 July 31 close after opening at $13.94 and trading in a session range of $13.89 to $14.19; the daily history table confirms the $13.92 close on volume near 4.42 million shares and the after-hours quote was $13.78, down 0.14 or 1.01%. |
| 5-day moving average | Near $13.67 | Computed as the simple average of the five closing prices through August 3, 2026 in the StockAnalysis.com daily price history, just below the current price and consistent with a consolidating short-term uptrend. |
| 20-day moving average | Near $12.45 | Computed as the simple average of the twenty closing prices through August 3, 2026 in the StockAnalysis.com daily price history; the stock trades above it, confirming the recent short-term recovery. |
| Near support | $12.01 to $12.45 | The 50-day moving average near $12.01 and the 20-day average near $12.45 form the first support cluster after the rebound. |
| Key support | $10.10 to $10.62 | The 52-week low of $10.10 and the June 2026 low near $10.62 mark the major support zone that must hold to preserve the recovery structure. |
| Near resistance | $14.19 to $15.00 | The August 3 session high of $14.19 and the round number near $15.00 represent the first upside hurdle, in line with the analyst consensus target of $13.60. |
| Key resistance | $17.86 | StockAnalysis.com statistics reported the 200-day moving average near $17.86 on August 3, 2026, well above price and the level that would signal a longer-term trend turn if reclaimed. |
| 50-day moving average | $12.01 | StockAnalysis.com statistics reported the 50-day moving average near $12.01 on August 3, 2026, below the current price and confirming the medium-term recovery. |
| 200-day moving average | $17.86 | StockAnalysis.com statistics reported the 200-day trend line near $17.86 on August 3, 2026, far above price, so the longer-term structure remains down until price gets above it. |
| Momentum | RSI near 66.7 | The 14-day RSI was near 66.70 on StockAnalysis.com statistics on August 3, 2026, strong but not yet overbought. |
| Volume | About 3.9 million average shares | StockAnalysis.com statistics listed 20-day average volume near 3.90 million shares on August 3, 2026; the August 3 session traded about 4.42 million shares, above average and supportive of the up move. |
| Volatility | Beta 1.70 | KD has high volatility with a 5-year beta near 1.70 and elevated realized volatility, so position sizing should account for larger daily swings around earnings and news. |
| Invalidation | Close below $12.01 | A decisive close below the 50-day moving average near $12.01 would weaken the short-term recovery; a close below the June low near $10.62 would invalidate it. |
KD AI trading strategy
The KD AI trading strategy is a rules-based framework, not personalized advice. It combines filing-backed business evidence, technical confirmation, position sizing, and clear invalidation levels. Given the accounting remediation, the active investigation, high leverage, and high volatility, position size should be small relative to portfolio and keyed to the August 5, 2026 earnings report.
The primary trend is still down with price below the 200-day moving average near $17.86, but the short-term structure has turned up. A trend-following approach would wait for KD to build a base above the $14.19 to $15.00 resistance and reclaim the 200-day before treating the recovery as a new uptrend.
Do not chase the 31% rebound at 14.68% short interest without a plan. Require a sustained break above $15.00 on above-average volume and a stop below the 50-day moving average near $12.01.
If KD pulls back toward the $12.01 to $12.45 moving average support cluster after the August 5, 2026 earnings report and shows buying support, a mean-reversion trade toward $14 to $15 could be considered.
Set a hard stop below $11.00. A break below the June low near $10.62 invalidates the setup. Size for a 10% to 20% bounce rather than a trend reversal.
Track the fiscal 2027 adjusted pretax income path of $600 million to $700 million, free cash flow of $400 million to $500 million, constant-currency revenue trend, hyperscaler and Kyndryl Consult growth, the refinancing of the $700 million notes due October 2026, remediation progress on material weaknesses, the investigation outcome, and the new CFO transition on August 6, 2026.
Lower the rating if the fiscal 2027 guidance is cut, constant-currency revenue decline accelerates, debt or interest costs rise, the investigation expands, or material weaknesses are not remediated by March 31, 2027.
Investment research summary
Kyndryl manages, modernizes, and transforms mission-critical enterprise IT infrastructure for large organizations, charging recurring service fees for running their data centers, cloud migrations, security operations, digital workplaces, and network estates, with fiscal 2026 revenue of $15.1 billion across the United States, Japan, Principal Markets, and Strategic Markets segments.
Kyndryl has modest structural moats from scale as the world largest IT infrastructure services provider, 72,000 employees, deep relationships with enterprises and public sector clients, multi-vendor and hyperscaler expertise, and the Kyndryl Bridge automation platform. Switching costs for managed infrastructure exist, but legacy workloads are migrating to hyperscaler clouds and competitors including IBM, Accenture, and Cognizant compete directly.
The thesis can fail if (1) constant-currency revenue keeps declining as clients migrate legacy workloads to hyperscalers faster than new services grow, (2) the $700 million senior notes due October 2026 and total debt of $4.956 billion become harder to service if cash flow weakens, (3) the material weaknesses in internal control over financial reporting are not remediated by March 31, 2027, (4) the August 1, 2026 law firm investigation produces adverse findings, or (5) hyperscaler-related revenue growth decelerates sharply.
CEO Martin Schroeter has led the spin-off and turnaround, but fiscal 2026 brought a finance leadership shakeup over control weaknesses: interim CFO Harsh Chugh was appointed February 5, 2026, new CFO Ellen Johnson, the former Interpublic chief financial officer, was appointed July 1, 2026 and assumes the role August 6, 2026, and Andrew Bonzani joined as General Counsel on July 6, 2026. Management is executing a remediation plan targeting March 31, 2027 for the material weaknesses.
The IT infrastructure services industry is in a transition where AI, agentic AI, hybrid and sovereign cloud, and digital transformation create new service demand even as traditional managed infrastructure declines. Kyndryl positions its Kyndryl Bridge platform, agentic AI services, and hyperscaler alliances with AWS, Microsoft, and Google as the growth layer, with hyperscaler-related revenue reaching $1.9 billion in fiscal 2026.
At about 16.4x trailing GAAP earnings, 7.4x forward earnings on adjusted estimates, 2.64x book value, and 0.20x sales at the $13.92 price, the stock is below the $13.60 analyst consensus target. The valuation looks cheap on surface but relies on adjusted earnings and a successful turnaround; the margin of safety is thin given GAAP profit margin of 1.31%, negative working capital, and unresolved control and investigation issues.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| KD price | $13.92 at the August 3, 2026, 4:00 PM EDT market close, up 0.37 or 2.73% from the $13.55 July 31 close, after opening at $13.94 and trading in a session range of $13.89 to $14.19, with the daily history table confirming the $13.92 close on volume near 4.42 million shares and an after-hours quote of $13.78 down 0.14 or 1.01% | StockAnalysis.com real-time quote and daily price history | August 4, 2026 |
| Market capitalization | Near $3.07 billion, reported by StockAnalysis.com at the August 3, 2026 market close and matching the $13.92 price times 220.52 million shares outstanding, with 220,517,208 shares outstanding as of the June 3, 2026 record date for the July 30, 2026 annual meeting | StockAnalysis.com quote and statistics, Kyndryl annual meeting record date | August 4, 2026 |
| Fiscal 2026 revenue | $15.092 billion for the year ended March 31, 2026, up 0.23% from $15.057 billion in fiscal 2025, flat on a reported basis and down 3% in constant currency, matching StockAnalysis.com, Macrotrends, and the fiscal 2026 Form 10-K | StockAnalysis.com financials, Macrotrends, Kyndryl fiscal 2026 Form 10-K | August 4, 2026 |
| Fiscal 2026 earnings | Pretax income of $414 million versus $435 million in fiscal 2025, net income of $198 million or $0.85 per diluted share versus $252 million or $1.05, adjusted pretax income of $581 million up 21% from $482 million, adjusted net income of $341 million or $1.46 per diluted share versus $285 million or $1.19, and adjusted EBITDA of $2.7 billion up 6% | Kyndryl fourth quarter and full-year 2026 earnings release, May 6, 2026 | August 4, 2026 |
| Fiscal 2027 outlook | Adjusted pretax income of $600 million to $700 million, free cash flow of $400 million to $500 million, and constant-currency revenue flat to down 2% | Kyndryl fourth quarter and full-year 2026 earnings release, May 6, 2026 | August 4, 2026 |
| Fiscal 2026 cash flow | Cash flow from operations of $948 million versus $942 million in fiscal 2025, free cash flow of $406 million versus $419 million, and fourth quarter cash flow from operations of $499 million | Kyndryl fourth quarter and full-year 2026 earnings release and fiscal 2026 Form 10-K | August 4, 2026 |
| Fiscal 2026 signings | Signings of $13.5 billion including 38 contracts in excess of $50 million, with more than 30% of large-deal value from new scope and new logos, up from about 15% in the prior year | Kyndryl fourth quarter and full-year 2026 earnings release | August 4, 2026 |
| Hyperscaler and Consult revenue | Hyperscaler-related revenue of $1.9 billion in fiscal 2026, up 59% year over year and above the $1.8 billion target, and Kyndryl Consult revenue of $3.5 billion, up 18%, with Consult signings of $4 billion | Kyndryl fourth quarter and full-year 2026 earnings release | August 4, 2026 |
| Segment revenue | United States revenue of $3.784 billion down 2%, Japan of $2.284 billion down 3%, Principal Markets of $5.399 billion up 4%, and Strategic Markets of $3.625 billion flat, per the fiscal 2026 Form 10-K | Kyndryl fiscal 2026 Form 10-K segment results | August 4, 2026 |
| Segment adjusted EBITDA | United States adjusted EBITDA of $835 million up 15%, Japan of $486 million up 25%, Principal Markets of $834 million down 6%, Strategic Markets of $622 million up 3%, Corporate and other of negative $105 million, and total adjusted EBITDA of $2.672 billion up 6% | Kyndryl fiscal 2026 Form 10-K segment results | August 4, 2026 |
| Balance sheet | Cash and cash equivalents of $2.623 billion, total debt of $4.956 billion including about $1 billion drawn on the revolving credit facility, net cash of negative $2.333 billion or about $10.58 per share, shareholders equity of $1.293 billion, book value per share of $5.28, working capital of negative $779 million, and current ratio of 0.88 as of March 31, 2026 | StockAnalysis.com statistics and balance sheet, Kyndryl fiscal 2026 Form 10-K | August 4, 2026 |
| Debt structure | Senior notes of $700 million at 2.05% due October 2026, $500 million at 2.70% due 2028, $650 million at 3.15% due 2031, $500 million at 6.35% due 2034, and $550 million at 4.10% due 2041, plus finance leases, with the $700 million notes due 2026 still requiring refinancing | Kyndryl fiscal 2026 Form 10-K borrowings note | August 4, 2026 |
| Valuation | PE ratio of 16.38, forward PE of 7.36, price-to-sales of 0.20, price-to-book of 2.64, price-to-free-cash-flow of 9.03, enterprise value of $5.40 billion, EV/EBITDA of 1.65, debt/equity of 3.84, and Altman Z-Score of 1.44 | StockAnalysis.com statistics, verified with financial_rigor.py | August 4, 2026 |
| Analyst consensus | Hold with an average price target of $13.60 across 6 analysts, low of $13 and high of $15, median $13, with 0 Strong Buy, 0 Buy, 5 Hold, and 1 Sell in the July 2026 recommendation trend | StockAnalysis.com forecast and analyst ratings | August 4, 2026 |
| Recent analyst target updates | BMO Capital maintained Hold with a $15 to $14 target cut on July 22, 2026, Scotiabank moved $17 to $15 on May 7, 2026, Susquehanna downgraded to Hold at $13 on May 21, 2026, and Morgan Stanley cut $28 to $13 on March 24, 2026 | StockAnalysis.com forecast and ratings | August 4, 2026 |
| Consensus estimates | Fiscal 2027 revenue estimate of $14.91 billion with adjusted EPS of $1.89, and fiscal 2028 revenue of $15.00 billion with adjusted EPS of $2.59 | StockAnalysis.com forecast financial forecast | August 4, 2026 |
| Short interest | 32.38 million shares short, 14.68% of shares outstanding and 15.81% of float, 7.17 days to cover, up from 27.95 million shares the prior month | StockAnalysis.com statistics short selling | August 4, 2026 |
| Share repurchases | Kyndryl repurchased 11.6 million shares for $304 million in fiscal 2026, and 14.3 million shares for $398 million since the November 2024 authorization, or about 6% of shares outstanding, with about $302 million of capacity remaining | Kyndryl fourth quarter and full-year 2026 earnings release | August 4, 2026 |
| Material weaknesses | The fiscal 2026 Form 10-K reports material weaknesses in internal control over financial reporting, including senior finance executives failing to set an appropriate tone at the top with a lack of transparency related to cash management practices, ineffective disclosure process communication, and weak controls over the internal investigation and escalation of hotline complaints, with a remediation plan targeting March 31, 2027 | Kyndryl fiscal 2026 Form 10-K Item 9A, PwC report | August 4, 2026 |
| Restatement filings | Kyndryl filed Form 10-K/A and Form 10-Q/A on February 17, 2026 to restate managements internal control conclusions for fiscal 2025 and the interim period, while concluding the previously issued financial statements were still fairly presented | SEC EDGAR Kyndryl Form 10-K/A and Form 10-Q/A filings | August 4, 2026 |
| Officer changes | Interim CFO Harsh Chugh and interim controller Bhavna Doegar appointed February 5, 2026; new CFO Ellen Johnson, former Interpublic executive vice president and chief financial officer, appointed July 1, 2026 with the role effective August 6, 2026; Andrew Bonzani joined as General Counsel and Secretary on July 6, 2026 | Kyndryl Form 8-K filings February 5 and July 1, 2026 | August 4, 2026 |
| Investigation | Kahn Swick and Foti announced on August 1, 2026 that it had commenced an investigation of the officers and directors of Kyndryl Holdings, Inc. related to the company | Business Wire press release via StockAnalysis.com news feed | August 4, 2026 |
| Solvinity acquisition blocked | The State Secretary for Economic Affairs and Climate Policy in the Netherlands issued a decision on May 25, 2026 prohibiting Kyndryls proposed acquisition of Solvinity Group B.V., a Netherlands managed cloud provider, for cash consideration of approximately 100 million euros, per the fiscal 2026 Form 10-K | Kyndryl fiscal 2026 Form 10-K Note 10 | August 4, 2026 |
| Upcoming earnings | Kyndryl will release first quarter fiscal 2027 results for the quarter ended June 30, 2026 on August 5, 2026 before market open | Kyndryl press release July 1, 2026 and StockAnalysis.com earnings calendar | August 4, 2026 |
| Employees | Approximately 72,000 employees | StockAnalysis.com company profile | August 4, 2026 |
| Technical snapshot | 5-day moving average near $13.67, 20-day moving average near $12.45, 50-day moving average near $12.01, and 200-day moving average near $17.86 as of August 3, 2026, with 14-day RSI near 66.70 and 20-day average volume near 3.90 million shares | StockAnalysis.com statistics and daily price history | August 4, 2026 |
This KD AI stock analysis is an informational tool for research and education only. It is not investment advice, a recommendation, or a guarantee of future performance. Forecast ranges are scenarios based on available public data as of the August 4, 2026 data cutoff and can be wrong. Kyndryl has a complex capital structure, material weaknesses in internal control over financial reporting, and an active investigation, and investors should conduct their own due diligence.
Design trading strategies visually with 10+ indicators. Set entry/exit conditions and risk management, then generate Pine Script code with no coding required.
Filter and discover stocks based on market cap, dividend yield, P/E ratio, sector, and more. Screen thousands of stocks with real-time data.
Smart AI-driven stock selection with fundamental screening, analyst estimates, and key metrics. Filter by P/E, market cap, dividends, and more.
