How Investors Are Reacting To Kyndryl Holdings (KD) Partnership to Expand AI-Driven Customer Solutions

• Kyndryl and VML recently announced a partnership to transform customer engagement by integrating Kyndryl’s AI, data, and infrastructure capabilities with VML’s experience transformation expertise, targeting personalized solutions across industries.
• This collaboration brings together expert teams and advanced technology platforms to help clients overcome data, security, and infrastructure challenges as they move beyond pilot AI projects toward broader business transformation.
• Next, we'll explore how Kyndryl's expanded AI-driven offerings through this partnership may impact the company’s investment outlook.

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Kyndryl Holdings Investment Narrative Recap

For investors considering Kyndryl, the big picture centers on the company’s push to become a leader in enterprise digital and AI transformation, shifting its mix toward higher-value services as legacy contracts wind down. The recent Kyndryl-VML partnership highlights this commitment, expanding the company’s AI-driven offerings and potentially strengthening short-term consulting and integration catalysts. However, it does not materially offset the persistent risk of revenue volatility tied to declining legacy contracts, which remains a near-term challenge.

Among recent developments, Kyndryl’s expanded alliance with HPE stands out for its relevance. This move deepened Kyndryl’s role in deploying private cloud AI for customers, a complementary step to the VML partnership, amplifying its ability to capture growth as organizations scale up from AI pilots to real enterprise implementation.

Yet, in contrast to these growth initiatives, investors should be aware that nearly a third of Kyndryl’s revenues still depend on legacy contracts with lower margins and uncertain renewal prospects...

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

Kyndryl Holdings is expected to reach $16.7 billion in revenue and $1.1 billion in earnings by 2028. This outlook is based on a forecasted annual revenue growth rate of 3.6% and a $803 million increase in earnings from the current $297.0 million.

Uncover how Kyndryl Holdings' forecasts yield a $46.25 fair value, a 45% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members set Kyndryl’s fair value between US$26.06 and US$77.63 across seven views, with significant divergence at both ends. While the company’s shift toward high-margin consulting and AI partnerships remains a key catalyst, these differences show investor perspectives can vary widely, explore several viewpoints before deciding.

Explore 7 other fair value estimates on Kyndryl Holdings - why the stock might be worth 18% less 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 4 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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