At a glance
Kyndryl Holdings Inc is worth $3.07B, about 17 times its fiscal 2026 earnings. Revenue grew 0.2% to $15.09B in fiscal 2026, with 1.3% kept as profit; over 5 years it has grown 4.2% a year. It pays no dividend; it spent $397.0M buying back its shares over FY2021–FY2026. The stock returned −51.2% over the past year with dividends reinvested, against +11.5% for the S&P 500. At its worst it fell 57.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 15 months after the low.
The business in plain English
Kyndryl runs and modernizes the complex computer systems that large organizations depend on every day. It was formed in November 2021, when IBM spun off the infrastructure services unit of its Global Technology Services segment as a separate public company. Kyndryl calls itself the world's largest information technology (IT) infrastructure services provider, with thousands of customers in more than 60 countries.
Kyndryl earns money from managed services, where it operates customers' mainframes, clouds, networks, security systems and workplace technology, and from advisory and implementation projects branded Kyndryl Consult. Its customer contracts typically average more than five years. About 45% of revenue in the fiscal year ended March 31, 2026 came from financial services firms such as banks and insurers, followed by retail, travel and logistics (17%), industrial companies (14%), healthcare and the public sector (13%), and technology, media and telecom (11%). The five largest customers supplied about 10%.
Kyndryl reports four segments by geography. Of fiscal 2026 revenue of $15.1 billion, the United States contributed 25% and Japan 15%. The other 60% came from two groups of countries, Principal Markets (36%) and Strategic Markets (24%). Gross margin, the share of revenue left after the direct cost of delivering services, was 21.8%. Revenue shrank about 4.2% a year over the five years from fiscal 2021.
Price history
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KD -51.2% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Principal Markets | $5.40B | 35.8% |
| United States. | $3.78B | 25.1% |
| Strategic Markets | $3.63B | 24% |
| Japan. | $2.28B | 15.1% |
By geography
| Other countries, excluding United States and Japan | $9.02B | 59.8% |
| U.S. | $3.78B | 25.1% |
| Japan | $2.28B | 15.1% |
Latest results
- In Q1 FY2027 (ended Jun 30, 2026), revenue was $3.62B, down 3.3% from a year earlier, and net income was $-55.0M (-198.2%).
- For fiscal 2026, revenue was $15.09B (+0.2% year over year; -4.2% a year from FY2021 to FY2026) with a 1.3% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | -4.2% weak |
|---|---|
| Free cash flow margin | 2.3% watch |
| Return on equity (FY2026) | 16.9% good |
| Return on assets (FY2026) | 1.6% weak |
| Net cash (cash minus debt) | $-2.76B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $19.35B | $-2.01B | $-408.0M |
| FY2021 | $18.66B | $-2.30B | $-871.0M |
| FY2023 | $17.03B | $-1.37B | $-84.0M |
| FY2024 | $16.05B | $-340.0M | $-197.0M |
| FY2025 | $15.06B | $252.0M | $337.0M |
| FY2026 | $15.09B | $198.0M | $340.0M |
Valuation snapshot
| Market value | $3.07B |
|---|---|
| P/E ratio | 16.6 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Kyndryl Holdings’s market value went from $4.06B at the end of 2021 to $3.07B on Oct 28, 2026, down 24%; since the end of 2025 it is down 49%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.07B | -49.4% |
| 2025 | $6.07B | -24.5% |
| 2024 | $8.04B | +68.5% |
| 2023 | $4.77B | +89.1% |
| 2022 | $2.52B | -37.8% |
| 2021 | $4.06B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| KD price data to Oct 28, 2026 | -47.0% | -51.2% | +0.3% | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -47.0% |
| 2025 | -23.2% |
| 2024 | +66.5% |
| 2023 | +86.9% |
| 2022 | -38.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 56.9% over that stretch · deepest drop along the way 57.3%, back to its old high 14.6 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| Vanguard Portfolio Management | 7.61% | Mar 31, 2026 |
| AQR Capital Management, LLC | 6.64% | Jun 30, 2026 |
| Vanguard Capital Management | 5.22% | Mar 31, 2026 |
| Neuberger Berman Group LLC | 4.6% | Feb 27, 2026 |
| FMR LLC | 4.5% | Feb 27, 2026 |
ETFs with the most weight in KD
| CSD Invesco S&P Spin-Off ETF | 4.25% |
| SMCO Hilton Small-MidCap Opportunity ETF | 3.38% |
| TSME Thrivent Small-Mid Cap Equity ETF | 2.91% |
| GGTL Gabelli Global Technology Leaders ETF | 2.77% |
| PEXL Pacer US Export Leaders ETF | 0.95% |
| MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF | 0.88% |
| XSW SPDR S&P Software & Services ETF | 0.68% |
| MIDE Xtrackers S&P MidCap 400 Scored & Screened ETF | 0.44% |
What could go wrong
- Unresolved SEC matter. Kyndryl says a matter involving the SEC, the US securities regulator, and related events are ongoing, with no predictable timing or outcome. An unfavorable result could bring costs and reputational damage.
- Weak controls over financial reporting. The company has disclosed material weaknesses in its internal control over financial reporting. In plain terms, its processes for catching errors in reported figures have not been fully effective, raising the risk of mistakes.
- Dropping low-profit work shrinks revenue. Kyndryl has been repricing, scaling back or not renewing low-profit contract work, which can shrink revenue. Revenue fell from $18.7 billion in fiscal 2021 to $15.1 billion in fiscal 2026.
- Losing large, long-term customers. Contracts typically average over five years, but customers need not renew. About 45% of fiscal 2026 revenue came from financial services firms, and the top five customers supplied about 10%. Losing major accounts would hurt.
- AI and cheaper rivals could cut demand. Kyndryl warns new delivery models and technologies, including agentic AI (software that carries out tasks on its own), could reduce demand and profits for its services. Rivals include firms staffed mainly in lower-cost countries.
- More debt than cash, thin margins. Debt of $4.9 billion exceeded cash and investments of $2.1 billion as of June 30, 2026, and profit was just 1.3% of fiscal 2026 revenue. A credit-rating cut could raise borrowing costs.
Recent events
- Other company announcement
- Quarterly results released
- Executive or board change; Shareholder vote results
- Executive or board change; Investor presentation or announcement
- Quarterly results released; Restructuring or exit costs
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Executive or board change
- Quarterly results released
For income and retirement investors
Kyndryl has paid no dividend since IBM spun it off in November 2021, so the shares produce no income. Any return must come from the share price, and withdrawals would mean trimming shares. The company has used buybacks, or share repurchases, instead: $93 million in fiscal 2025 and $304 million in the year ended March 31, 2026. Shares outstanding fell 2.8% between November 2021 and July 29, 2026.
The share price has swung hard. In the 2022 bear market (a prolonged market decline), the shares fell 57.3% between January 3 and September 30, 2022, then took about 14.6 months to recover, by December 18, 2023. As of October 28, 2026, they were down 51.2% over one year and had dropped as much as 75.6% from a peak within three years. The stock did not trade during the 2008 or 2020 crashes. A single stock like this carries far more risk than a diversified fund.
Questions investors ask
Does Kyndryl pay a dividend?
No. Kyndryl has paid no dividend since IBM spun it off in November 2021. It has returned cash through buybacks, or share repurchases, instead: $397 million over fiscal 2021 through fiscal 2026, including $304 million in the fiscal year ended March 31, 2026. Shares outstanding fell 2.8% between November 2021 and July 29, 2026. Investors who rely on regular income would get none from these shares and would need to trim holdings to raise cash.
How does Kyndryl make money?
Kyndryl makes money by designing, running and modernizing the IT systems of large organizations, under customer contracts that typically average more than five years. It manages mainframes, clouds, networks, cybersecurity, disaster recovery and workplace technology, and offers advisory and implementation work through Kyndryl Consult. Revenue was $15.1 billion in the fiscal year ended March 31, 2026, with about 45% from financial services firms such as banks and insurers. By region, the United States supplied 25% and Japan 15%.
Is Kyndryl still part of IBM?
No. Kyndryl became an independent company in November 2021, when IBM spun off the infrastructure services unit of its Global Technology Services segment. In a spin-off, a parent separates a business into its own publicly traded company. Kyndryl's shares trade on the New York Stock Exchange. Large disclosed shareholders include Vanguard Portfolio Management, with 7.61% as of March 31, 2026, and AQR Capital Management, with 6.64% as of June 30, 2026.
Is Kyndryl profitable?
Yes, but narrowly. Kyndryl earned $198 million, or $0.85 per diluted share, in the fiscal year ended March 31, 2026. That was just 1.3% of its $15.1 billion revenue. It moved into profit in fiscal 2025 after net losses of $1.4 billion in fiscal 2023 and $340 million in fiscal 2024. Free cash flow, the cash left after capital spending, was $340 million. It then posted a $55 million net loss in the quarter ended June 30, 2026.
How much has Kyndryl stock fallen?
Sharply. As of October 28, 2026, the shares were down 51.2% over one year and 47% year to date, with a peak-to-trough fall of 63.4% within the prior year. That followed gains of 86.9% in 2023 and 66.5% in 2024, then a 23.2% drop in 2025. Over three years the shares were roughly flat, up about 1%. At that price, the company was valued at about $3.1 billion, or 16.6 times fiscal 2026 earnings.