
Kyndryl Holdings (KD) Stock Forecast & Price Target
Kyndryl Holdings (KD) Analyst Ratings
Bulls say
Kyndryl Holdings Inc. is poised for significant growth, 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 has exhibited strong performance, achieving a 29% year-over-year revenue increase, reaching $3 billion in fiscal year 2025, driven by expanded customer relationships in AI, applications, and cybersecurity. This segment now represents 23-24% of total signings, highlighting its importance as a growth driver within the organization's overall strategy.
Bears say
Kyndryl Holdings Inc. is facing challenges as its cloud services, which constitute approximately 34% of total sales, are projected to experience low-to-mid single-digit annualized growth, indicating limited revenue expansion potential. The expectation of generating cumulative free cash flow (FCF) of around $2.5 billion from fiscal years 2026 to 2028 suggests a focus on financial optimization through buybacks rather than reinvestment into growth initiatives. This emphasis on capital return, rather than aggressive growth strategy, combined with subdued revenue growth in key segments, contributes to a negative outlook on the company's 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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