Can Kyndryl (KD) Leverage AI-Powered Aviation Solutions to Strengthen Its Industry-Focused Strategy?

• In early October 2025, Kyndryl Holdings launched its Aviation Industry Cloud Solution, an agentic AI-powered platform on Google Cloud designed to help airlines and the broader travel ecosystem modernize operations, streamline data, and enhance workforce and customer experiences.
• This development marks a major push by Kyndryl to tailor industry-specific, AI-driven solutions and reinforce its presence as a partner enabling digital transformation in mission-critical sectors.
• We'll examine how Kyndryl's new AI-powered aviation platform elevates its investment narrative as a specialized enabler of enterprise innovation.

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Kyndryl Holdings Investment Narrative Recap

To be a shareholder in Kyndryl Holdings today, an investor needs to believe the company can successfully pivot from legacy, lower-margin contracts toward higher-value AI and cloud solutions, driving sustained profit and revenue improvement. While the launch of the Aviation Industry Cloud Solution strengthens Kyndryl's position as a technology partner in mission-critical sectors, its immediate impact on reducing reliance on legacy contracts, the most important short-term catalyst and top risk, appears limited for now.

Of the recent announcements, the enhancements to the Agentic AI Framework (unveiled October 1, 2025) are most directly relevant. These innovations aim to accelerate AI adoption and automation across diverse industries, supporting Kyndryl’s efforts to move beyond pilot projects and generate higher-margin, recurring business, a crucial factor in addressing ongoing legacy revenue risks.

However, with nearly a third of revenues still tied to older contracts, investors should not overlook the ongoing exposure to legacy revenue volatility, especially if deal transitions are delayed or...

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

Kyndryl Holdings' narrative projects $16.7 billion revenue and $1.1 billion earnings by 2028. This requires 3.6% yearly revenue growth and a $803 million earnings increase from $297 million.

Uncover how Kyndryl Holdings' forecasts yield a $43.00 fair value, a 55% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community span a wide US$26.06 to US$91.35, with diverging expectations on Kyndryl’s potential. With revenue growth still reliant on replacing legacy contracts, consider how evolving business mix could shape future returns.

Explore 7 other fair value estimates on Kyndryl Holdings - why the stock might be worth over 3x more than the current price!

Build Your Own Kyndryl Holdings 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 Kyndryl Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Kyndryl Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Kyndryl Holdings' 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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