How Investors Are Reacting To Dow (DOW) Deepening Its AI and Automation Partnership With Kyndryl

• On November 10, 2025, Kyndryl announced it is expanding its long-term collaboration with Dow to modernize Dow's infrastructure applications, using AI and automation to increase operational agility and support innovation across Dow’s technology stack.
• This enhanced partnership not only highlights Dow's focus on digital transformation but also reflects a commitment to optimizing business processes and technology resilience on a global scale.
• We’ll examine how Dow’s deeper integration of AI and automation through Kyndryl could influence the future direction of its investment narrative.

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Dow Investment Narrative Recap

To be a Dow shareholder, you need to believe in the company's ability to adapt to shifting market conditions, boost efficiency, and strengthen its technology backbone. While the expanded Kyndryl partnership showcases Dow's continued push for digital transformation, the announcement does not materially change the biggest short-term catalyst, cost reduction, and does little to offset immediate operational risks, such as elevated feedstock and energy expenses impacting margins.

Among recent announcements, Dow’s plan to idle three upstream European assets (July 2025) stands out as most relevant. This restructuring aligns closely with the broader cost-saving efforts that remain the main catalyst for earnings improvement, especially as energy and demand pressures persist in the region.

Yet, even as Dow invests in technology, investors should remain aware that elevated input costs could still pressure profits if...

Read the full narrative on Dow (it's free!)

Dow's narrative projects $43.6 billion revenue and $1.5 billion earnings by 2028. This requires 1.4% yearly revenue growth and a $2.5 billion earnings increase from current earnings of -$994 million.

Uncover how Dow's forecasts yield a $27.94 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Twelve fair value estimates from the Simply Wall St Community span from US$14.64 to US$41.52 per share. While opinions are wide ranging, the most pressing concern for many remains whether Dow’s ongoing margin pressures from stubbornly high feedstock and energy costs will persist for longer than hoped, explore how different investors weigh this and other drivers.

Explore 12 other fair value estimates on Dow - why the stock might be worth 34% less than the current price!

Build Your Own Dow Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Dow research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Dow research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Dow's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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