
Kyndryl Holdings (KD) Stock Forecast & Price Target
Kyndryl Holdings (KD) Analyst Ratings
Bulls say
Kyndryl Holdings Inc. is demonstrating a strong upward trajectory in its financial performance, with management forecasting an adjusted pretax income increase of 30-50% year-over-year for the first quarter of fiscal year 2026. The company's Kyndryl Consult segment reported a revenue growth of 29% year-over-year, reaching $3 billion in fiscal year 2025, attributed to its expanded offerings in AI, applications, and cybersecurity. Additionally, Kyndryl Consult has become a significant growth driver, contributing 23-24% of total signings, highlighting its strategic importance in the company's overall financial outlook.
Bears say
Kyndryl Holdings Inc. is facing challenges with its cloud segment, which constitutes approximately 34% of total sales but is projected to see only low-to-mid single-digit percentage annualized growth. Additionally, while the company anticipates a cumulative free cash flow of around $2.5 billion from FY26E to FY28E, which is earmarked for over $1 billion in share buybacks, this may not significantly alleviate concerns regarding revenue growth or overall market competitiveness. The reliance on a stagnating growth rate in a critical revenue stream, coupled with a substantial portion of cash flow being allocated to share buybacks rather than reinvestment in innovation or expansion, contributes to a negative outlook for the stock.
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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