How Investors May Respond To Kyndryl Holdings (KD) Expanding Quantum Safe And AI Trust Services

• Earlier this month, Kyndryl introduced a Quantum Safe Assessment service that maps cryptographic risks across enterprise IT estates and builds post-quantum security roadmaps, while also rolling out AI-powered services for IBM z/OS and a broader Agentic AI Digital Trust framework for managing AI across hybrid and multi-cloud environments.
• Together, these launches underscore Kyndryl’s effort to become a go-to partner for addressing emerging threats in encryption, AI governance, and digital trust across complex infrastructure.
• We’ll now examine how Kyndryl’s new quantum-safe assessment and AI trust services could reshape the company’s investment narrative and growth drivers.

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Kyndryl Holdings Investment Narrative Recap

To own Kyndryl, you need to believe its pivot from legacy infrastructure contracts toward higher value consulting, cloud, AI and security services can offset revenue pressure from older deals and support steadier earnings. The new quantum-safe and AI trust offerings could reinforce that shift in the near term, but they do not remove the key short term risk of lumpier signings and potential erosion in legacy revenue as contracts roll off or get renegotiated.

Among the latest launches, the Quantum Safe Assessment service is especially relevant because it sits at the intersection of security, compliance and complex infrastructure, where Kyndryl already has deep account exposure. If customers start using this type of assessment as a gateway to broader modernization and Zero Trust projects, it could support consulting growth and help rebalance the mix away from lower margin pre spin agreements over time.

Yet even as Kyndryl adds higher value AI and quantum safe services, investors should be aware that...

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 about a $0.8 billion earnings increase from $297.0 million today.

Uncover how Kyndryl Holdings' forecasts yield a $37.60 fair value, a 39% upside to its current price.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community span roughly US$26 to US$75 per share, underscoring how far opinions can diverge. Against this wide range, Kyndryl’s dependence on replacing legacy, lower margin contracts with newer, higher value work remains a central factor that could shape how those expectations for the business ultimately play out.

Explore 8 other fair value estimates on Kyndryl Holdings - why the stock might be worth over 2x 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 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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