Analysts Are Updating Their Kyndryl Holdings, Inc. (NYSE:KD) Estimates After Its Third-Quarter Results

Investors in Kyndryl Holdings, Inc. (NYSE:KD) had a good week, as its shares rose 5.1% to close at US$21.96 following the release of its third-quarter results. It looks like the results were pretty good overall. While revenues of US$3.9b were in line with analyst predictions, statutory losses were much smaller than expected, with Kyndryl Holdings losing US$0.05 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kyndryl Holdings after the latest results.

View our latest analysis for Kyndryl Holdings

Taking into account the latest results, the current consensus, from the five analysts covering Kyndryl Holdings, is for revenues of US$15.5b in 2025. This implies a discernible 5.8% reduction in Kyndryl Holdings' revenue over the past 12 months. Kyndryl Holdings is also expected to turn profitable, with statutory earnings of US$0.73 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$15.4b and earnings per share (EPS) of US$0.74 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$23.80. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Kyndryl Holdings, with the most bullish analyst valuing it at US$27.00 and the most bearish at US$19.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kyndryl Holdings' past performance and to peers in the same industry. One thing that stands out from these estimates is that revenues are expected to keep falling until the end of 2025, roughly in line with the historical decline of 5.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 10% per year. So while a broad number of companies are forecast to grow, unfortunately Kyndryl Holdings is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$23.80, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Kyndryl Holdings analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of Kyndryl Holdings' balance sheet, and whether we think Kyndryl Holdings is carrying too much debt, for free on our platform here.

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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.