Kyndryl Holdings (KD) Stock Forecast & Price Target

Kyndryl Holdings is facing obstacles in stabilizing their business as seen through surprise management departures, below expectation F3Q26 results, negative outlook revisions, and challenges with internal controls. While improvement in profitability and deal signings may lead to a possible turnaround, there is limited visibility and uncertainty on reaching FY28 targets. As such, a neutral rating is warranted until there is more clarity on material weaknesses and a path to stability. Based on a 7x P/E multiple applied to revised FY28 estimates, the new price target is $28. Revenue and adjusted EPS estimates have been updated for slower growth and a weaker pricing environment in the short term.

Kyndryl Holdings is currently facing numerous challenges that threaten its ability to achieve its FY28 targets, including uncertainty around execution and credibility, material weaknesses in internal controls, and departures of key executives. These challenges, combined with the company's revised outlook for revenue growth and free cash flow, paint a picture of increased complexity and limited visibility. Until these issues are resolved and there is greater confidence in KD's ability to meet its targets, it is difficult to have a positive outlook on the company's stock.