# Kyndryl Holdings (KD.US)

Canonical: https://gigainvestors.com/s/KD

Analysis as of: 2026-10-16T07:29:34.973Z. Financial observations: FY2019–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $13.19 per share; close as of 2026-10-15.

Estimated value: low $17.27 per share, central $18.51 per share, high $20.16 per share. Buy at or below the central value $18.51 per share. Valuation as of 2026-10-16T07:29:34.973Z; scenarios are not confidence intervals.

Expected annual return: 18.0% at the stated quote. About 18.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 6

- Years with a net loss: 6

- Operating margin variation: 6.85×

Chart: Operating margin; fiscal year observations.

- FY2019: -0.02×

- FY2020: -0.04×

- FY2021: -0.09×

- FY2022: -0.04×

- FY2023: -0.02×

- FY2024: 0.01×

- FY2025: 0.04×

- FY2026: 0.04×

- LTM to Jun 2026: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -3.1%

- ROIC, second-lowest year: -12.7%

- Typical minus recent gross margin: -6.9 pp

- Typical gross margin (annual median): 14.8%

- Recent gross margin (lower of latest and 3-year median): 21.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.0%

- ROIC including acquisitions, ten-year median: -15.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2020: -8.7%

- FY2021: -30.5%

- FY2022: -12.7%

- FY2023: -10.3%

- FY2024: 2.5%

- FY2025: 13.8%

- FY2026: 15.2%

- LTM to Jun 2026: 18.7%

### economics: pass

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.2B

- Net income, five-year total: -$3.6B

- Working capital / revenue, annual change: -2.4 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: -$1.4B

- FY2023: -$651M

- FY2024: $192M

- FY2025: $664M

- FY2026: $2.4B

### management: pass

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- Per-share earnings: -8.98 to 0.85 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.9%

- Diluted shares, 5-year annual growth: 0.9%

- Per-share value change: $9.83

- Per-share value, starting three-year median: -$8.98

- Per-share value, ending three-year median: $0.85

- Buybacks concentrated in cheaper years (correlation): 0.89

- Average buyback yield: 2.7%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- ROIC, last three-year median: 13.8%

Chart: Earnings per share; fiscal year observations.

- FY2019: -$4.38

- FY2020: -$10.29

- FY2021: -$8.98

- FY2022: -$10.15

- FY2023: -$6.06

- FY2024: -$1.48

- FY2025: $1.05

- FY2026: $0.85

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -6.0%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 4

- Stock compensation / operating cash flow: 6.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.79×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.81×

Chart: Sloan accruals; fiscal year observations.

- FY2020: -29.3%

- FY2021: -14.3%

- FY2022: -16.5%

- FY2023: -15.9%

- FY2024: -7.5%

- FY2025: -6.6%

- FY2026: -6.0%

## Holders

- [Harry Burn](https://gigainvestors.com/SSHFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 69% since Jun 2025 · "Kyndryl Cuts Earnings Outlook Amid Financial Reporting Review" (finance.yahoo.com, Feb 2026) · sales -0.8%

Story as of 2026-10-16T09:59:00.453Z; price observation 2026-10-15.

Price needs cash profits to shrink 8.4% a year for ten years

- 2025-08-04: Kyndryl (NYSE:KD) Misses Q2 Sales Targets, Stock Drops 13% ([finance.yahoo.com](https://finance.yahoo.com/news/kyndryl-nyse-kd-misses-q2-212849654.html))

- 2026-02-09: Kyndryl Cuts Earnings Outlook Amid Financial Reporting Review ([finance.yahoo.com](https://finance.yahoo.com/news/kyndryl-cuts-earnings-outlook-amid-130000986.html))

- 2026-08-07: Kyndryl Holdings (KD) On Weak First Quarter Results Has Its Valuation Back In Focus ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/kyndryl-holdings-kd-weak-first-151523985.html))

### Sales · FY2026–2027

sales -0.8%; source https://www.sec.gov/Archives/edgar/data/1867072/000110465926067881/kd-20260331x10k.htm; observed 2026-05-29.

- FY2019: $22B 

- FY2020: $19B 

- FY2021: $19B 

- FY2022: $19B 

- FY2023: $17B 

- FY2024: $16B 

- FY2025: $15B 

- FY2026: $15B 

- FY2027: $15B 

### Gross margin · FY2027

gross margin 38.6%; source https://www.sec.gov/Archives/edgar/data/1867072/000110465926067881/kd-20260331x10k.htm; observed 2026-05-29.

- FY2019: 11.7% 

- FY2020: 11.3% 

- FY2021: 10.9% 

- FY2022: 11.3% 

- FY2023: 14.8% 

- FY2024: 17.8% 

- FY2025: 20.9% 

- FY2026: 21.8% 

- FY2027: 38.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in information technology services; annual sales are USD 15.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1867072/000110465926067881/kd-20260331x10k.htm (filed 2026-05-29); FY2026: revenue 15092000000; grossProfit 3289000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KD.US: Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider in the United States, Japan, and internationally. It offers cloud services; core enterprise services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. The company serves financial, healthcare, public, technology, media and telecom, retail, travel and logistics, and automotive manufacturer industries. Kyndryl Holdings, Inc. was incorporated in 2020 and is headquartered in New York, New York.

### Why customers stay

Margins ranged from 17.8% to 21.8% during 2024–26; it lost 3.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2024: grossProfit / revenue = 17.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2025: grossProfit / revenue = 20.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1867072/000110465926067881/kd-20260331x10k.htm (filed 2026-05-29); FY2026: grossProfit / revenue = 21.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); 9-year return on capital observations [[2020,-0.08729930624380575],[2021,-0.3050725623582766],[2022,-0.12668024928092042],[2023,-0.10336949152542373],[2024,0.02537473233404711],[2025,0.13805309734513274],[2026,0.1516348273328435],[2027,0.18735539845758356]]; median -0.03096228695487932. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 8 years; bought back USD 398 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2024: growth capex 0; upkeep 651000000; cash acquisitions 0; owner earnings 192000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2025: growth capex 0; upkeep 605000000; cash acquisitions 0; owner earnings 664000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1867072/000110465926067881/kd-20260331x10k.htm (filed 2026-05-29); FY2026: growth capex 0; upkeep 608000000; cash acquisitions 0; owner earnings 2365000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); Dividend observations: [[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1867072/000110465926067881/kd-20260331x10k.htm (filed 2026-05-29); FY2026: cash repurchases 398000000 USD.

### Are managers owners

Insiders own 2.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KD.US SharesStats.PercentInsiders = 2.178 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 8.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); Ten-year compound average after fade. Initial solved rate -0.1300156661638246. Price 13.19; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2021-10: $31.50 per share

- 2021-11: $15.80 per share

- 2021-12: $18.10 per share

- 2022-01: $16.88 per share

- 2022-02: $15.86 per share

- 2022-03: $13.12 per share

- 2022-04: $11.89 per share

- 2022-05: $12.34 per share

- 2022-06: $9.78 per share

- 2022-07: $10.47 per share

- 2022-08: $10.42 per share

- 2022-09: $8.27 per share

- 2022-10: $9.67 per share

- 2022-11: $11.71 per share

- 2022-12: $11.12 per share

- 2023-01: $13.39 per share

- 2023-02: $15.69 per share

- 2023-03: $14.76 per share

- 2023-04: $14.46 per share

- 2023-05: $12.56 per share

- 2023-06: $13.28 per share

- 2023-07: $13.66 per share

- 2023-08: $16.88 per share

- 2023-09: $15.10 per share

- 2023-10: $14.63 per share

- 2023-11: $18.03 per share

- 2023-12: $20.78 per share

- 2024-01: $20.52 per share

- 2024-02: $21.97 per share

- 2024-03: $21.76 per share

- 2024-04: $19.66 per share

- 2024-05: $26.61 per share

- 2024-06: $26.31 per share

- 2024-07: $26.87 per share

- 2024-08: $23.69 per share

- 2024-09: $22.98 per share

- 2024-10: $22.89 per share

- 2024-11: $34.71 per share

- 2024-12: $34.60 per share

- 2025-01: $37.96 per share

- 2025-02: $38.08 per share

- 2025-03: $31.40 per share

- 2025-04: $32.42 per share

- 2025-05: $39.04 per share

- 2025-06: $41.96 per share

- 2025-07: $37.77 per share

- 2025-08: $31.79 per share

- 2025-09: $30.03 per share

- 2025-10: $28.92 per share

- 2025-11: $25.83 per share

- 2025-12: $26.56 per share

- 2026-01: $23.00 per share

- 2026-02: $12.33 per share

- 2026-03: $13.12 per share

- 2026-04: $13.82 per share

- 2026-05: $12.47 per share

- 2026-06: $11.31 per share

- 2026-07: $13.55 per share

- 2026-08: $13.45 per share

- 2026-09: $11.26 per share

- 2026-10: $13.19 per share

## Annual estimated value (USD per share)

- FY2026: low $18.37 per share, central $19.53 per share, high $21.08 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1867072/000110465926067881/kd-20260331x10k.htm); period 2026-03-31, filed 2026-05-29.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.