Kyndryl Holdings, Inc. is a technology services company and IT infrastructure services provider operating in the United States, Japan, and internationally. Its offerings include cloud services, core enterprise services, application, data, and artificial intelligence services, digital workplace services, security and resiliency services, and network and edge services. The company serves industries such as financial, healthcare, public, technology, media and telecom, retail, travel and logistics, and automotive manufacturing. Incorporated in 2020, it is headquartered in New York, New York.
Kyndryl's turnaround stalls as revenue shrinks and debt costs rise
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Revenue keeps shrinking as IBM headwind persists Kyndryl's quarterly revenue fell about 3% again, missing estimates, because customers now buy IBM hardware and software directly instead of through Kyndryl. Management expects this drag to continue all year, so the core business is still getting smaller even as newer AI services grow.
The persistent revenue decline is the main reason the stock keeps falling and the biggest obstacle to the turnaround story.
AI and consulting growth plus healthcare acquisition Kyndryl Consult grew 14% and hyperscaler-related revenue jumped 48%, showing the new AI-led services are winning business. It also closed the Healthcare IT Leaders purchase for up to $350 million, adding healthcare consulting expertise, though that business is only about 1% of Kyndryl's revenue.
This is the main counterweight: the parts of Kyndryl that are growing and the acquisition that supports the AI-led strategy.
New debt and paused buybacks squeeze financial flexibility Kyndryl issued new senior notes rated BBB to repay $700 million of old notes and pay down its credit line, and it paused share buybacks to preserve cash. The added interest cost and the pause remove a support for the stock price while the company funds its turnaround.
The financing moves directly affect Kyndryl's capital position and remove a prior source of shareholder support.
Cybersecurity scare and new WPP partnership A reported credential-theft campaign linked to Kyndryl briefly knocked the shares, though the intrusion path was unconfirmed. Separately, WPP expanded its partnership, adopting Kyndryl's Agentic AI Framework and naming Kyndryl its preferred marketing partner, a positive demand signal that partly offsets the security worry.
These are the period's other notable events: a risk to reputation and a new customer win that cuts the other way.
Kyndryl and WPP Expand Strategic Partnership Across AI, Marketing and Go-to-Market
Kyndryl and WPP announced an expanded strategic agreement that redefines their traditional customer-supplier relationship, spanning three key areas: transformation of WPP's business platforms and support model, an expanded marketing partnership, and joint go-to-market initiatives. Under the deal, WPP will apply Kyndryl's Agentic AI Framework across its operations to modernize its application estate with intelligent support operations, faster issue resolution and reduced technical complexity, supporting its Elevate28 strategy to become a simpler, more integrated, AI-powered company. Kyndryl named WPP its preferred global marketing partner, expanding the relationship beyond Media, Brand and Creative Strategy to cover digital, experiential and integrated marketing capabilities, alongside an AI-powered Marketing Operating System built on WPP Open. Kyndryl Consult and WPP Enterprise Solutions, previously VML Enterprise Solutions, will continue to strengthen joint go-to-market efforts first announced in 2025. WPP expects to realize cost savings and efficiencies over time from retiring legacy applications and accelerating adoption of strategic enterprise platforms, with a portion of those savings reinvested into further IT simplification and productivity projects, enhanced by Kyndryl Bridge.
Artificial Intelligence › Agentic AI & Autonomous Workflows ▲Technology
Artificial Intelligence › AI Applications & Copilots ▲Technology
KD · Demand · Positive WPP will apply Kyndryl's Agentic AI Framework and named Kyndryl its preferred global marketing partner, expanding Kyndryl's customer deals.
WPP.LSE · Capital · Positive WPP expects cost savings and efficiencies from retiring legacy applications and adopting strategic enterprise platforms under the expanded Kyndryl deal.
Kyndryl Shares Fall 4.9% After Fitch Assigns BBB Rating to Senior Notes
Kyndryl shares fell 4.9% in the afternoon session after Fitch Ratings assigned a BBB rating to the IT infrastructure services provider's senior notes offering. According to Fitch, the new senior notes rank pari passu with Kyndryl's existing senior unsecured debt. In a related prospectus filing, Kyndryl said it plans to use net proceeds to repay $700 million of its 2.05% senior notes maturing in October 2026, with remaining proceeds plus cash on hand intended to pay down revolving credit balances and related fees. After the initial drop, the shares recovered some of the losses and traded at $11.57, down 4.5% from the previous close. Kyndryl is down 54.6% since the beginning of the year and is trading 63.3% below its 52-week high of $31.53 from September 2025.
KD · Capital · Negative Fitch assigned a BBB rating to Kyndryl's new senior notes, and the company is issuing debt to repay $700M of 2.05% notes and pay down revolver balances, a financing event that coincided with a 4.9% share drop.
Kyndryl closes Healthcare IT Leaders acquisition for up to $350 million
Kyndryl has completed its acquisition of Healthcare IT Leaders, LLC, an enterprise IT services provider serving hospitals and health systems across the United States, for up to $350 million, including a contingent performance-based earnout. The deal follows Kyndryl's August 10, 2026 announcement of its intent to acquire the company. The acquisition combines Healthcare IT Leaders' healthcare consulting and application managed services expertise with Kyndryl's infrastructure and AI capabilities, letting healthcare organizations work with a single provider across applications, infrastructure and consulting. Revenues generated by Healthcare IT Leaders over the twelve-month period ending March 31, 2026, were approximately 1% of Kyndryl's revenue for fiscal year 2026, and the transaction does not change Kyndryl's fiscal year 2027 outlook provided on August 5, 2026. Kyndryl said it has temporarily paused its share repurchase program to preserve financial flexibility and will update investors when it resumes.
KD · Capital · Positive Kyndryl completed its acquisition of Healthcare IT Leaders for up to $350 million, expanding its healthcare IT services capabilities.
Healthcare IT Leaders, LLC · Capital · Positive Healthcare IT Leaders was acquired by Kyndryl for up to $350 million, including a contingent performance-based earnout.
Kyndryl Stock Falls on Reported Cybersecurity Issue
Shares of Kyndryl fell 3.3% in afternoon trading after cybersecurity firm Hudson Rock linked the IT infrastructure services provider to a potential credential theft campaign. Hudson Rock found evidence connecting infostealer malware infections to compromised credentials at several large companies, including Kyndryl, with roughly 170,000 records associated with the company in a broader Azure/Entra directory exfiltration campaign. The exact intrusion path remains unconfirmed, and the news adds to investor concerns following a recent revenue miss and cautious analyst commentary. Kyndryl shares traded at $12.72, down 3.4% from the previous close.
Kyndryl grants inducement equity awards to new CFO and General Counsel
Kyndryl announced it granted equity awards to newly hired Chief Financial Officer Ellen Johnson and General Counsel and Secretary Andrew Bonzani as a material inducement for their employment. Johnson received 248,514 performance stock units at target, 121,248 restricted stock units, and 115,474 special sign-on restricted stock units, while Bonzani received 138,063 performance stock units at target, 67,360 restricted stock units, and 96,228 special sign-on restricted stock units. The awards were approved by the Compensation and Human Capital Committee under the NYSE employment inducement exemption and were granted pursuant to the Kyndryl 2026 Employment Inducement Equity Incentive Plan.
Kyndryl reported second quarter revenue of $3.62 billion, missing analyst estimates of $3.64 billion and declining 3.3% year-on-year, while adjusted EPS of -$0.12 beat expectations of -$0.17. Adjusted EBITDA came in at $512 million versus estimates of $460.6 million, with an operating margin of -1.2% compared to 3.3% a year earlier. CEO Martin Schroeter attributed the revenue shortfall to ongoing headwinds in legacy focus accounts and customers increasingly procuring IBM hardware and software directly, while citing positive momentum in Kyndryl Consult and hyperscaler partnerships. During the earnings call, analysts questioned management on Consult segment growth assumptions, European market headwinds, workforce reskilling, new logo wins, and mainframe modernization opportunities.
Kyndryl to acquire Healthcare IT Leaders to boost AI-led healthcare modernization
Kyndryl announced its intent to acquire Healthcare IT Leaders, LLC, an enterprise IT services provider for hospitals and health systems. The acquisition aims to strengthen Kyndryl's ability to serve U.S. healthcare organizations across applications, infrastructure and AI by combining Healthcare IT Leaders' healthcare consulting and application managed services expertise with Kyndryl's AI-led modernization capabilities. The terms of the transaction were not disclosed, and the deal is expected to close during the second quarter of Kyndryl's fiscal year 2027, subject to customary closing conditions and regulatory review. Following the close, Kyndryl will integrate Healthcare IT Leaders' consulting expertise in clinical, operational and workforce platforms with its own infrastructure and AI capabilities, enabling healthcare organizations to work with a single provider across applications, platforms and underlying IT environments.
Kyndryl Q1 Revenue Drops 3% as AI-Led Growth Offsets IBM Headwinds
Kyndryl Holdings reported a 3% year-over-year revenue decline in the first quarter of fiscal 2027, with an adjusted pre-tax loss of $37 million due to $152 million in workforce rebalancing charges. The company delivered 5% revenue growth in the US for the second consecutive quarter, driven by its AI-led modernization approach, while Kyndryl Consult revenue grew 14% and hyperscaler-related revenue streams grew 48% over the last 12 months. Total signings exceeded revenue over the last six months, with 40 deals over $50 million signed in the past year, 30% of which came from scope expansions or new logos. The evolving relationship with IBM, where customers procure hardware and software directly, is creating a persistent headwind that is expected to continue throughout fiscal 2027, with revenue projected to be flat to down 2% in constant currency. Kyndryl reaffirmed its fiscal 2028 targets of over $1.2 billion in adjusted pre-tax income and $1 billion in free cash flow, achievable on low single-digit revenue growth.
Hush Security Raises $30 Million Series A to Secure AI Agents, with Akamai as Strategic Investor
Hush Security has raised a $30 million Series A funding round, with Akamai Technologies joining as a strategic investor alongside existing backers Battery Ventures and YL Ventures. The round brings the company's total capital raised to $41 million, less than a year after emerging from stealth. Hush provides a platform that gives AI agents scoped, just-in-time permissions and a centralized kill switch, addressing what it calls the governance gap for autonomous software. The company has already been deployed internally by Kyndryl, the world's largest IT infrastructure services provider, which has also begun reselling Hush to its own enterprise clients. Hush plans to use the funding to expand its engineering and sales teams, particularly in the United States, and to deepen integrations with enterprise AI platforms.
Microsoft Platforms Drive AI Modernization Across Asia Pacific
Enterprises across Asia Pacific are increasingly incorporating Microsoft cloud and AI platforms into integrated operating environments, according to a new ISG Provider Lens report. The 2026 study finds that organizations in Australia, New Zealand, Southeast Asia, and India are embedding AI into business processes to improve efficiency and customer engagement, supported by Microsoft's $3 billion regional expansion and a new hyperscale data center in Hyderabad. The report evaluates 36 providers, naming Accenture & Avanade, DXC Technology, HCLTech, Infosys, Kyndryl, TCS, and Wipro as Leaders in all three quadrants assessed. Wipro also earned the highest customer satisfaction scores, making it the global ISG CX Star Performer for 2026 among Microsoft ecosystem providers.
Kyndryl Holdings shares slide 54% year to date despite Aptiv partnership
Kyndryl Holdings shares have fallen about 54% year to date, with the one-year total shareholder return declining nearly 70%, even as the company announced a new collaboration with Aptiv focused on mission-critical IT services and edge AI. The stock recently closed at $11.72, while the most followed narrative sees it trading below an estimated fair value of $14.10, suggesting it may be 16.9% undervalued. Kyndryl still reports annual revenue of about US$15.1 billion and positive net income, but faces hurdles including revenue pressure from legacy contracts and risks from complex account transitions. The company is expanding AI, data, and cybersecurity services through initiatives like Kyndryl Bridge and alliances such as Databricks, aiming to support higher margins and new revenue streams.
Kyndryl teams up with Aptiv and Wind River for mission critical software
Kyndryl Holdings announced a new alliance with Aptiv and Wind River to focus on mission critical software and real-time technology. The partnership aims to accelerate adoption of advanced software platforms in sectors requiring high performance and reliability, combining expertise in IT services, automotive technology, and real-time operating systems to develop joint solutions. The collaboration positions Kyndryl closer to core systems powering connected vehicles, industrial automation, and other software-defined environments, signaling an intent to engage in high-value technology ecosystems beyond traditional infrastructure support. Kyndryl trades at US$11.72, about 20% below a consensus analyst target of US$14.10, and is flagged as undervalued, trading 43.5% below an internal fair value estimate.
Robotics & Physical AI › Industrial Automation & Cobots Technology
Robotics & Physical AI › Autonomous Vehicles & Robotaxi Technology
KD · Technology · Positive Kyndryl announces new alliance with Aptiv and Wind River to focus on mission critical software and real-time technology, positioning it in high-value technology ecosystems.
APTV · Demand · Positive Partnership with Kyndryl and Wind River to develop joint solutions for connected vehicles and industrial automation may increase demand for Aptiv's automotive technology.
Kyndryl and Everforth Shares Fall After IBM Revenue Warning
Kyndryl and Everforth shares fell sharply after IBM issued a second-quarter revenue warning, signaling that enterprise budget shifts toward AI hardware may be delaying large consulting deals. IBM pre-announced adjusted earnings of $2.93 per share on $17.2 billion in revenue, missing Wall Street estimates of $3.01 and $17.86 billion, respectively. CEO Arvind Krishna attributed the shortfall to a late-June reprioritization of enterprise budgets toward servers, storage, and memory chips, causing numerous large deals to stall. Kyndryl dropped 6.9% and Everforth fell 5.4% as investors treated IBM's delayed deal closures as a bellwether for the broader IT services and consulting group.
Artificial Intelligence › AI Applications & Copilots ▼Demand
IBM · Demand · Negative IBM pre-announced Q2 revenue miss due to enterprise budget shifts toward AI hardware, delaying large consulting deals.
EFOR · Demand · Negative Everforth shares fell 5.4% as investors treated IBM's delayed deal closures as a bellwether for the consulting group, implying similar demand weakness.
KD · Demand · Negative Kyndryl shares fell 6.9% as investors treated IBM's delayed deal closures as a bellwether for IT services, implying similar demand weakness.
Kyndryl Holdings stock has fallen 71.7% over the past year, yet valuation models now point to the shares trading at a significant discount to their underlying fundamentals. A Discounted Cash Flow analysis using trailing free cash flow of about $339.1 million estimates an intrinsic value of about $20.81 per share, implying the stock trades at a 42.3% discount to that cash-flow-based estimate. On an earnings basis, Kyndryl trades at a P/E of about 13.3x, well below the broader IT industry average of roughly 17.3x and a peer group average of around 30.1x, and also far beneath a modelled fair P/E multiple of about 38.5x. Expanding partnerships with Amazon Web Services and Microsoft support long-term cash flow expectations, though execution risks around large-scale AI projects and sovereignty-focused cloud architectures may weigh on how much of that potential value is realized. On Simply Wall St's broader checks, Kyndryl screens as undervalued in five of six valuation tests, reinforcing the view that the stock looks cheap on a composite basis.
Kyndryl Partners with Microsoft to Expand Sovereignty Solutioning
Kyndryl announced an expansion of its sovereignty solutioning through new capabilities and services with Microsoft. The collaboration combines Kyndryl Sovereignty Solutioning with Microsoft Sovereign Cloud capabilities to help customers design, build and operate cloud architectures that align with evolving data residency and operational requirements. The joint offering supports the full spectrum of Microsoft's sovereign cloud approach, including public cloud capabilities and private cloud solutions using Microsoft Azure Local. Kyndryl's Sovereignty Readiness Assessment will help customers evaluate their current posture and develop a phased roadmap, with implementation and ongoing operations supported by sovereignty-ready architectures. The partnership aims to assist governments and highly regulated industries in navigating geopolitical uncertainty and complex IT environments while enabling modernization and AI-enabled use cases.
Cloud & Digital Infrastructure › Mega-cap Hyperscalers Regulation
Cybersecurity & Digital Trust › Cloud & Workload Security Regulation
KD · Demand · Positive Kyndryl expands partnership with Microsoft to offer sovereignty solutions, likely driving demand for its services.
MSFT · Demand · Positive Microsoft's sovereign cloud capabilities are integrated into the joint offering, potentially increasing adoption of its cloud services.
Kuehn Law investigates Kyndryl Holdings officers and directors for fiduciary breaches
Kuehn Law is investigating whether certain officers and directors of Kyndryl Holdings breached their fiduciary duties to shareholders. The investigation follows a federal securities lawsuit alleging that executive management systematically manipulated free cash flow metrics by postponing vendor payments between fiscal quarters, causing the company to falsely represent its cash generation as sustainable. The suit also claims Kyndryl's financial disclosure procedures, accounting methodologies, and internal controls were materially inadequate, and that its business operations and growth prospects were worse than publicly represented. Shareholders who purchased KD stock prior to August 1, 2024 are encouraged to contact the law firm.
Kyndryl and Everforth Shares Fall After Fed Holds Rates Steady
Shares of IT services companies Kyndryl and Everforth fell in the afternoon session after the Federal Reserve held its benchmark rate at 3.5%–3.75% and signaled the easing cycle might reverse. Kyndryl dropped 3% and Everforth fell 2.8% as the FOMC message dampened expectations for further rate relief, which had been loosening CFOs' IT budgets for multi-year enterprise transformation contracts. The rate outlook also strengthened the dollar, reducing the value of US-dollar earnings for offshore-heavy firms. Kyndryl's stock is down 54.6% year-to-date and trading 73.3% below its 52-week high of $43.41 from July 2025.
Kyndryl Named a Customers' Choice in Gartner Peer Insights for Outsourced Digital Workplace Services for Second Consecutive Year
Kyndryl has been recognized as a Customers' Choice in the 2026 Gartner Peer Insights "Voice of the Customer" for Outsourced Digital Workplace Services report for the second consecutive year. The company received 71 customer responses during the 18-month evaluation period, the highest volume among all eligible vendors, with an overall rating of 4.8 out of 5 stars and a 93% willingness to recommend score. Kyndryl's global practice leader for digital workplace services, Michael Przytula, said the recognition reflects the company's commitment to helping customers transform workplace experiences and achieve meaningful business outcomes. Kyndryl was also positioned as a Leader in the 2025 Gartner Magic Quadrant for Outsourced Digital Workplace Services.
KD · Demand · Positive Kyndryl recognized as Customers' Choice for second consecutive year, with high ratings and customer volume, indicating strong end-customer demand for its services.
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