Kyndryl Holdings - AI Stock Analysis

Analysis generated January 15, 2026

Kyndryl Holdings, Inc. is a global IT services company that focuses on designing, building, managing, and modernizing the mission-critical technology systems that the world depends on every day. The company operates as a spin-off from IBM, aiming to deliver a comprehensive digital transformation to its clients by leveraging a vast portfolio of services and solutions. The company’s services range from cloud solutions to network security and data analytics, making it a crucial IT partner for numerous enterprises.

Fundamental Analysis

For the last quarter, Kyndryl Holdings reported a revenue of $3.72 billion. This represents a decrease of 2.08% compared to the quarter before, indicating a short-term need for concern. However, compared to the same quarter last year, there is a decrease of 1.40%, which is another point of concern. Revenue is a crucial metric because it indicates the company’s ability to generate income from its business activities. The net income for the last quarter was $68 million, a decrease of 1.45% compared to the quarter before, but an increase of 258.14% compared to the same quarter last year. This considerable year-over-year growth is a positive sign.

The EBITDA for the last quarter stands at $312 million, a decrease of 29.73% compared to the previous quarter. However, it’s up by 18.63% from the same quarter last year. The current Price-to-Earnings (P/E) ratio is 15.82, which appears to be within the normal range for the industry, suggesting that the stock is neither overvalued nor undervalued based on its earnings.

Technical Analysis

Currently, Kyndryl Holdings’ stock price is $26.80. This represents an increase of 0.94% compared to a month ago, indicating a positive short-term trend. However, on a year-over-year basis, the stock price has decreased by 30.10%, which could be a source of long-term concern. The trend at present is bullish. The Simple Moving Average (SMA) for the past 10 days (SMA10) is $27.15, slightly up from the previous SMA10 of $27.10, indicating potential upward momentum in price movement.

The Relative Strength Index (RSI) is at 42.4, which signifies a neutral condition. An RSI below 30 typically indicates that a stock is oversold, while an RSI above 70 suggests it is overbought. Therefore, the current RSI does not strongly suggest either condition.

Alternative Data Analysis

Kyndryl Holdings has 780 open positions according to data from popular job boards. This number has remained stable over the last couple of months, pointing to a company in a stable hiring position. Employee sentiment towards the business outlook is neutral, neither particularly optimistic nor pessimistic. In terms of customer acquisition, the company’s estimated webpage visitors are 350,000, down by 31% over the last few months. This decline is concerning, as fewer visitors could indicate a potential loss in new customers and lower engagements.

Kyndryl Holdings has 21,000 followers on Twitter, with no significant increase or decrease in follower count over the last couple of months. This stagnation may reflect steadiness in brand engagement. AltIndex’s AI score, which predicts stock performance based on an amalgam of fundamental, technical, and alternative data, gives Kyndryl Holdings a score of 37, suggesting a sell signal.

Conclusion and Recommendation

Taking into account all the data points discussed, Kyndryl Holdings presents a mixed picture. On one hand, the company shows robust year-over-year growth in net income and EBITDA, signifying its potential for profitability. However, short-term declines in revenue and key financial metrics, along with a significant decrease in stock price over the past year, are causes for concern.

The technical indicators suggest a current positive trend, yet broader data such as job stability and employee sentiment are neutral. Worryingly, the drop in webpage visitors implies a potential loss in customer acquisition and engagement.

Given the AltIndex’s AI score of 37, which signals a sell recommendation, it may be advisable to approach Kyndryl Holdings prudently. Monitor for continued improvements in financial performance and consider the broader market conditions before making any investment decision.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.