Analysts have lowered their price target for Kyndryl Holdings from $43.00 to $39.50. They cited slightly higher discount rates and marginally reduced profit margin expectations as the reason for this change.

What's in the News

• Kyndryl has completed the repurchase of 7.3 million shares, representing 3.16% of outstanding shares, for $249 million under its ongoing buyback program. (Buyback Tranche Update)
• The company increased its equity buyback authorization by $400 million, raising the total to $700 million. (Buyback, Change in Plan Terms)
• Kyndryl reaffirmed its fiscal year 2026 guidance, projecting constant-currency revenue growth of 1% and stronger second-half revenue driven by accelerated growth in consulting and hyperscaler-related services. (Corporate Guidance, New/Confirmed)
• Launched an Aviation Industry Cloud Solution to help airlines modernize operations and enhance customer and workforce experiences through agentic AI and Google Cloud integration. (Product-Related Announcements)
• Announced growth plans in India with a $2.25 billion commitment focused on modernizing technology infrastructure, establishing an AI lab, and expanding digital skills initiatives. (Business Expansions)

Valuation Changes

• Fair Value Estimate: Lowered from $43.00 to $39.50, reflecting a modest reduction in projected company valuation.
• Discount Rate: Increased slightly from 10.58% to 11.14%, indicating a higher required rate of return and greater perceived risk.
• Revenue Growth Forecast: Remained essentially unchanged at approximately 3.59%.
• Net Profit Margin: Decreased slightly from 6.45% to 6.40%, suggesting a slight reduction in expected profitability.
• Future Price-to-Earnings (P/E) Ratio: Reduced from 12.23x to 11.43x, which implies a lower future valuation multiple.