Kyndryl Holdings, Inc. (NYSE:KD) stock is down during Tuesday’s premarket session as the company faces challenges following a recent earnings report that fell short of expectations.
The stock’s movement comes as it grapples with a negative outlook and a CFO departure, which has raised concerns among investors, adding pressure as broader markets edged lower.
Also, in an exchange filing, Kyndryl said its Audit Committee is reviewing cash management practices, related disclosures (including drivers of its adjusted free cash flow metric), internal controls over financial reporting, and other matters after receiving voluntary document requests from the SEC’s Division of Enforcement.
Earnings Snapshot
Kyndryl reported adjusted earnings per share of 52 cents, missing the analyst consensus estimate of 60 cents, while quarterly revenues of $3.86 billion slightly missed the street view of $3.89 billion.
Additionally, JP Morgan downgraded the company’s stock from Overweight to Underweight, and significantly slashed its price forecast from $40 to $16, reflecting the company’s cuts to sales and profit guidance.
In the most recent quarter, Kyndryl’s revenues in the U.S. remained flat year-over-year at $958 million, while revenues in Japan fell by 1% to $568 million. The company also expects fiscal 2026 adjusted pretax income to be between $575 million and $600 million, down from a previous forecast of $725 million, indicating a challenging environment ahead.
The broader market experienced slight gains on the previous trading day, with the S&P 500 up by 0.19%. Kyndryl’s stock performance contrasts with this trend, suggesting that company-specific factors are influencing its current trajectory.
Technical Analysis
Kyndryl’s stock is currently trading 55.3% below its 20-day simple moving average (SMA) and 60.4% below its 100-day SMA, indicating significant weakness in the short to medium term.
Over the past 12 months, shares have decreased by 74.18%, and they are currently positioned closer to their 52-week lows than highs.
The RSI is at 16.87, which is considered oversold, suggesting that the stock may be undervalued in the short term. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.
The combination of oversold RSI and bearish MACD suggests mixed momentum, reflecting the ongoing challenges Kyndryl is facing in the market.
- Key Resistance: $11.00
- Key Support: $10.00
Analyst Outlook
Kyndryl Holdings, Inc. is slated to provide its next financial update on May 6, 2026.
- EPS Estimate: 72 cents (Up from 52 cents YoY)
- Revenue Estimate: $4.05 billion (Up from $3.80 billion YoY)
- Valuation: P/E of 10.1x (Indicates value opportunity)
The stock carries a Buy Rating with an average price target of $36.00. Recent analyst moves include:
- Guggenheim: Buy (Lowers Target to $28.00) (Feb. 3)
- Guggenheim: Initiated with Buy (Target $30.00) (Nov. 26, 2025)
- JP Morgan: Overweight (Lowers Target to $40.00) (Nov. 6, 2025)
Valuation Insight: While the stock trades at a value P/E multiple, the strong consensus and rising estimates suggest analysts view the growth prospects as justification for the 240% upside to analyst targets.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Kyndryl Holdings, highlighting its strengths and weaknesses compared to the broader market:
- Value: 67.19 — Trading at a reasonable valuation compared to peers.
- Momentum: 0.75 — Stock is underperforming the broader market.
Kyndryl Holdings’ Benzinga Edge signal reveals a mixed outlook. While the Value score suggests some potential for recovery, the low Momentum score indicates ongoing challenges that investors should monitor closely.
Top ETF Exposure
- Inspire Faithward Mid Cap Momentum ETF (NYSE:GLRY): 3.39% Weight
- Russell US Small Cap Equity Active ETF (NASDAQ:RUSC): 0.43% Weight
Because KD carries meaningful weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
KD Price Action: Kyndryl shares were down 0.57% at $10.53 during premarket trading on Tuesday, according to Benzinga Pro data.
Photo by ShU studio via Shutterstock
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