Key Stats for Kyndryl Stock
- Price Change for Kyndryl stock: -54.92%
- Kyndryl Share Price as of Feb. 9: $10.59
- 52-Week High: $44.20
- Kyndryl Stock Price Target: $29.75
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What Happened?
Kyndryl Holdings, Inc. (KD) shares have fallen sharply, down nearly 55% from recent highs, following disappointing earnings results and ongoing concerns around profitability and growth.
In its most recent quarter, Kyndryl reported revenue of $3.86 billion, slightly below consensus expectations, while adjusted EPS came in at $0.52, missing estimates by roughly 14%. Operating margins remained thin at about 4.9%, reflecting persistent cost pressures across labor, restructuring, and legacy contracts.
While revenue declined modestly year over year, management reiterated its focus on higher-margin cloud, data, and digital workplace services. However, investors reacted negatively to the pace of margin improvement, which has lagged expectations.
The company has also undergone leadership changes, including the appointment of an interim CFO, which added uncertainty during a critical turnaround phase.
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What the Market Is Telling Us About Kyndryl Stock
The selloff suggests investors are losing patience with the pace of Kyndryl’s turnaround.
Despite generating a positive free cash flow of about $299 million over the last twelve months, Kyndryl’s profitability remains modest. LTM operating margin stands at 4.7%, and gross margin is just under 22%, well below peers in IT services.
From a valuation perspective, the stock now trades at about 0.34x forward revenue and roughly 3.6x forward earnings, reflecting skepticism about long-term growth durability. Net debt remains manageable at around 1.5x EBITDA, but leverage still limits flexibility.
Street targets remain well above the current share price. The latest Street Target mean is $29.75, implying significant upside from today’s levels, though that gap largely reflects how far the stock has fallen rather than rising confidence.
Analyst sentiment is mixed, with Buy and Outperform ratings offset by Holds and at least one Underperform. The wide dispersion highlights uncertainty around execution, contract repricing, and margin recovery.
Until Kyndryl shows sustained improvement in margins and earnings consistency, the stock may remain volatile despite its discounted valuation.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
