📊 KD Key Takeaways
Is Kyndryl Holdings, Inc. (KD) a Good Investment?
Kyndryl exhibits deteriorating fundamentals with net income declining 21.4% year-over-year while revenue growth stagnates at 0.2%, indicating margin compression in a challenging market. Elevated leverage of 3.32x debt-to-equity combined with below-1.0 current ratio creates liquidity strain, while razor-thin 1.3% net margin suggests limited competitive positioning and pricing power.
Kyndryl has returned to profitability with positive operating and net income on an $11.3B revenue base and maintains adequate interest coverage. However, margins are thin, free cash flow is slightly negative, and liquidity is tight with a sub‑1 current ratio. Sustained margin expansion and consistent free cash flow generation are needed to de‑risk leverage and strengthen the balance sheet.
Kyndryl Holdings, Inc. Key Strengths (KD)
- Positive free cash flow of $340M demonstrates operational cash generation despite profitability pressures
- Interest coverage ratio of 4.7x provides adequate cushion for debt service obligations
- Cash position of $2.6B offers near-term liquidity buffer to manage liabilities and operations
- Large revenue scale ($11.3B) supporting operating leverage potential
- Positive operating income and net income with 15.2% ROE
- Adequate interest coverage (4.7x) and $1.35B cash balance
KD Stock Risks: Kyndryl Holdings, Inc. Investment Risks
- Net income declined 21.4% YoY amid flat revenue, signaling operational deterioration and margin compression
- Current ratio of 0.88x indicates current liabilities exceed current assets, creating near-term solvency pressure
- Debt-to-equity of 3.32x limits financial flexibility during revenue stagnation and profitability decline
- Sub-1 current ratio (0.86x) indicates tight near-term liquidity
- Negative free cash flow and ongoing capex demands
- Thin margins and elevated leverage (2.43x D/E) reduce resilience
Key Metrics to Watch
- Operating margin trend - critical to assess if 2.7% can expand amid minimal revenue growth
- Current ratio and working capital - essential for monitoring liquidity adequacy
- Free cash flow sustainability - must remain positive to service debt and avoid covenant violations
- Revenue growth rate acceleration - needs positive momentum to justify current capital structure
- Debt-to-equity trajectory - deleveraging essential given profitability headwinds
- Free cash flow margin
- Operating margin
Kyndryl Holdings, Inc. (KD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.3% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
KD Profit Margin, ROE & Profitability Analysis
KD vs Technology Sector: How Kyndryl Holdings, Inc. Compares
How Kyndryl Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kyndryl Holdings, Inc. Stock Overvalued? KD Valuation Analysis 2026
Based on fundamental analysis, Kyndryl Holdings, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kyndryl Holdings, Inc. Balance Sheet: KD Debt, Cash & Liquidity
KD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kyndryl Holdings, Inc.'s revenue has declined by 21% over the 5-year period, indicating business contraction. The most recent EPS of $-1.48 indicates the company is currently unprofitable.
KD Revenue Growth, EPS Growth & YoY Performance
KD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.7B | $11.0M | $0.05 |
| Q3 2025 | $3.7B | -$12.0M | $-0.05 |
| Q2 2025 | $3.7B | -$32.0M | $-0.14 |
| Q1 2025 | $3.7B | $11.0M | $0.05 |
| Q3 2024 | $3.9B | -$12.0M | $-0.05 |
| Q2 2024 | $4.1B | -$142.0M | $-0.62 |
| Q1 2024 | $4.2B | -$141.0M | $-0.62 |
| Q3 2023 | $4.3B | -$106.0M | $-0.47 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kyndryl Holdings, Inc. Dividends, Buybacks & Capital Allocation
KD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kyndryl Holdings, Inc. (CIK: 0001867072)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 5, 2026 | 4 | xslF345X06/form4-06052026_090626.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/form4-06052026_090649.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/form4-06052026_090601.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/form4-06052026_090639.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/form4-06052026_090634.xml | View → |
❓ Frequently Asked Questions about KD
What is the AI rating for KD?
Kyndryl Holdings, Inc. (KD) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KD's key strengths?
Claude: Positive free cash flow of $340M demonstrates operational cash generation despite profitability pressures. Interest coverage ratio of 4.7x provides adequate cushion for debt service obligations. ChatGPT: Large revenue scale ($11.3B) supporting operating leverage potential. Positive operating income and net income with 15.2% ROE.
What are the risks of investing in KD?
Claude: Net income declined 21.4% YoY amid flat revenue, signaling operational deterioration and margin compression. Current ratio of 0.88x indicates current liabilities exceed current assets, creating near-term solvency pressure. ChatGPT: Sub-1 current ratio (0.86x) indicates tight near-term liquidity. Negative free cash flow and ongoing capex demands.
What is KD's revenue and growth?
Kyndryl Holdings, Inc. reported revenue of $15.1B.
Does KD pay dividends?
Kyndryl Holdings, Inc. does not currently pay dividends.
Where can I find KD SEC filings?
Official SEC filings for Kyndryl Holdings, Inc. (CIK: 0001867072) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KD's EPS?
Kyndryl Holdings, Inc. has a diluted EPS of $0.85.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KD's fundamental grade?
Based on our AI fundamental analysis in June 2026, Kyndryl Holdings, Inc. has a C grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KD stock overvalued or undervalued?
Valuation metrics for KD: ROE of 16.9% (sector avg: 22%), net margin of 1.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is KD's AI grade for 2026?
Our dual AI analysis gives Kyndryl Holdings, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KD's free cash flow?
Kyndryl Holdings, Inc.'s operating cash flow is $948.0M, with capital expenditures of $608.0M. FCF margin is 2.3%.
How does KD compare to other Technology stocks?
Vs Technology sector averages: Net margin 1.3% (avg: 18%), ROE 16.9% (avg: 22%), current ratio 0.88 (avg: 2.5).
Is Kyndryl Holdings, Inc. carrying too much debt?
KD has a debt-to-equity ratio of 3.32x, which is above the Technology sector average of 0.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.