Kyndryl Holdings Inc. Common Stock (KD)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought at a sensible price. Kyndryl is a $2.7 billion IT infrastructure services provider with 72,000 employees and FY2026 revenue of $15.1 billion for the period ended 2026-03-31. It was categorized by FairStock as a TURNAROUND because it returned to profit after a loss within the last three years. The filed record shows that improvement: FY2024 lost $340.0 million, FY2025 earned $252.0 million, and FY2026 earned $198.0 million. But the latest filed quarter, fiscal Q1 2027 ended 2026-06-30, showed a $55.0 million net loss and $-0.25 diluted EPS on $3.6 billion revenue. So the turnaround is not yet durable. Revenue has slipped from $16.1 billion in FY2024 to $15.1 billion in FY2026, and profitability is thin. FairStock's ratios show ROE 6.93%, ROCE 3.02%, D/E 4.22, Piotroski F-Score 2/9, and Altman Z-Score 0.16, which suggest a weak balance sheet. On the positive side, TTM free cash flow was $148.0 million, a 5.6% FCF yield. At the 2026-10-13 close of $12.24, FairStock calculates P/E 33.08, P/B 2.51, EV/EBITDA 3.86, Graham Number $6.37, and margin of safety -92.15%. The low EV/EBITDA may reflect debt rather than bargain. I see no clear moat in IT services, and Graham would demand a bigger discount. Until profits and revenue stabilize, this is a speculative turnaround, not a safe value.

In plain English: Kyndryl provides IT infrastructure and technology services to large organizations. The business looks weak right now: revenue has been slipping, the latest quarter lost money, and debt is high. At $12.24, the shares look expensive compared with the company's yearly profit and net assets, though its cash flow offers some support.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer