Will Kyndryl’s AI-Driven Infrastructure Upgrade Change Dow’s (DOW) Innovation Narrative?

• On November 10, 2025, Kyndryl announced an expansion of its nearly two-decade collaboration with Dow to modernize Dow’s infrastructure using AI and automation, aiming to enhance operational agility and innovation across the company’s global technology stack.
• This intensified partnership highlights Dow’s commitment to leveraging advanced technologies to support efficiency and accelerate the modernization of its business operations worldwide.
• We’ll explore how Dow’s expanded collaboration with Kyndryl to adopt AI-driven solutions could influence the company’s investment outlook.

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Dow Investment Narrative Recap

To be a shareholder in Dow, you need to believe in the company’s ability to adapt to industry shifts, particularly through technology upgrades, cost efficiency, and strategic partnerships, as macroeconomic pressure and persistent margin challenges weigh on near-term profitability. The expanded Kyndryl partnership reflects a push to modernize operations but is not expected to materially shift the biggest short-term catalyst, which remains Dow’s cash flow improvements from cost-saving initiatives and capital project delays. The main near-term risk continues to be volatile feedstock and energy costs, which pressure already thin margins.

Among recent announcements, Dow’s decision to reduce its quarterly dividend to US$0.35 per share in July 2025 stands out. This move, paired with ongoing efforts to streamline operations and accelerate efficiency, such as shutting down European assets and focusing on innovation through partnerships, illustrates the company’s response to challenging financial conditions while working to preserve cash and stabilize earnings.

By contrast, investors should be mindful of uncertainties around persistent margin pressures and what this means for future dividend stability…

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

Dow's outlook anticipates $43.6 billion in revenue and $1.5 billion in earnings by 2028. This is based on annual revenue growth of 1.4% and an earnings increase of $2.5 billion from current earnings of -$994 million.

Uncover how Dow's forecasts yield a $27.94 fair value, a 28% upside to its current price.

Exploring Other Perspectives

Twelve private investors in the Simply Wall St Community set fair values for Dow ranging from US$14.65 to US$41.52 per share. While some see value upside, ongoing margin pressures and cost headwinds are factors you need to consider as you weigh these opinions against real company fundamentals.

Explore 12 other fair value estimates on Dow - why the stock might be worth 33% 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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