Should I Buy KD? KD 2026 Analysis

Should You Buy Kyndryl Holdings Inc (KD) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

23.310

1 Day change

-1.65%

52 Week Range

44.200

Analysis Updated At

2026/01/26

Kyndryl Holdings Inc (KD) is not a strong buy for a beginner, long-term investor at this time. Despite some positive developments like the extended partnership with Hertz and a favorable analyst rating from Guggenheim, the company's financial performance and technical indicators suggest caution. The stock is in a bearish trend, with declining revenue, net income, and EPS, alongside weak technical signals. While the long-term potential may exist, the current entry point does not align with the user's impatient investment approach.

Technical Analysis

The stock is in a bearish trend with MACD below zero and negatively expanding, RSI at 25.042 (neutral zone), and bearish moving averages (SMA_200 > SMA_20 > SMA_5). Key support and resistance levels indicate a potential downside, with S1 at 24.616 and S2 at 23.782.

Options Data

Neutral

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Guggenheim initiated a Buy rating with a $30 price target, citing strong positioning in the infrastructure outsourcing segment.
Extended partnership with Hertz to modernize technology and improve operational efficiency using AI-driven solutions.

Neutral/Negative Catalysts

Declining financial performance in Q2 2026, with revenue down 1.40% YoY, net income down 258.14% YoY, and EPS down 252.63% YoY.
Bearish technical indicators and weak market sentiment.
No significant hedge fund or insider trading trends.

Financial Performance

In Q2 2026, revenue dropped by 1.40% YoY to $3.72 billion. Net income plummeted by 258.14% YoY to $68 million, and EPS fell by 252.63% YoY to 0.29. However, gross margin improved by 8.35% YoY to 21.53%.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Guggenheim initiated a Buy rating with a $30 price target, citing progress on profitability and strong positioning in the infrastructure outsourcing segment. However, JPMorgan and Susquehanna recently lowered their price targets to $40 and $35, respectively, due to mixed financial results.

4 Analyst Rating

Wall Street analysts forecast KD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KD is 33.25 USD with a low forecast of 28 USD and a high forecast of 40 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

3 Buy

1 Hold

0 Sell

Strong Buy

Current: 23.700

Low

Averages

33.25

High

Current: 23.700

Low

Averages

33.25

High

Scotiabank

NULL -> Outperform

initiated

$40

AI Analysis

2026-01-27

New

Reason

Scotiabank

Price Target

$40

AI Analysis

2026-01-27

New

initiated

NULL -> Outperform

Reason

Scotiabank assumed coverage of Kyndryl Holdings with an Outperform rating and $40 price target. The company's revenue mix, relative to peers, skews much more toward "highly recurring and sticky" managed IT with very little exposure to discretionary consulting revenue, the analyst tells investors in a research note. The firm is positive on Kyndryl's gross profit growth strength and highly recurring mix of revenue.

Guggenheim

NULL -> Buy

initiated

$30

2025-11-26

Reason

Guggenheim

Price Target

$30

2025-11-26

initiated

NULL -> Buy

Reason

Guggenheim last night initiated coverage of Kyndryl Holdings with a Buy rating and $30 price target. The company's progress on profitability has been encouraging, particularly in a challenging macroeconomic environment, the analyst tells investors in a research note. Guggenheim believes Kyndryl is among the best positioned in the infrastructure outsourcing segment to "pivot to stability" over the medium-term. The firm says the company has reshaped its portfolio to elevate quality of its signings.

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KD Should I Buy

KD Should I Buy

Should You Buy Kyndryl Holdings Inc (KD) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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