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KD: Agentic AI And Quantum Safe Services Will Drive Future Upside

Digital Transformation And Hybrid Cloud Will Create A Resilient Future

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KD
AnalystConsensusTarget
Not Invested
Published 22 Apr 2025

Update shared on 20 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-21.5%
7D
0.6%

Analysts have modestly increased their price target for Kyndryl Holdings to 37.60 dollars per share, reflecting slightly lower discount rate assumptions and marginally more favorable long term profitability and valuation expectations.

What's in the News

  • Launched Quantum Safe Assessment services to identify cryptographic vulnerabilities across enterprise IT estates and to build roadmaps for transition to post quantum cryptography and Zero Trust aligned security (company announcement)
  • Introduced new agentic AI powered mainframe services on IBM z/OS to automate operations, improve reliability and bring AI inferencing closer to mission critical data via Kyndryl Bridge and IBM Watsonx Assistant for Z (company announcement)
  • Expanded Kyndryl Agentic AI Framework with Digital Trust controls to govern, monitor and secure AI agents across hybrid and multi cloud environments, targeting highly regulated industries (company announcement)
  • Unveiled new advisory and change management services to help customers reskill workforces and redesign processes to scale agentic AI, addressing gaps highlighted in Kyndryl's 2025 Readiness Report (company announcement)
  • Renewed and expanded multi year partnerships with Vodafone Idea and Dow to modernize infrastructure, automate IT operations and strengthen cyber resilience using Kyndryl Bridge and AI driven services (company announcements)

Valuation Changes

  • Fair value estimate maintained at 37.60 dollars per share, indicating no change in the intrinsic value assessment.
  • Discount rate reduced slightly from approximately 11.15 percent to 11.10 percent, reflecting a marginally lower perceived risk profile.
  • Revenue growth kept effectively unchanged at around 4.15 percent annually, signaling stable top line growth expectations.
  • Net profit margin held roughly steady at about 5.91 percent, suggesting no material shift in long term profitability assumptions.
  • Future P/E edged down slightly from about 11.12 times to 11.11 times earnings, implying a marginally lower forward valuation multiple.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.