Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Kyndryl Holdings, Inc.

KD · NYSE · Technology

Fundamental quality

WEAK

29

out of 100

Kyndryl Holdings, Inc. earns a fundamental-quality score of 29 out of 100, profiling it as a company with demanding fundamentals. Its score rests mainly on its financial strength (net debt 3.24× EBITDA). Its weakest area is its growth (revenue -4.6%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Kyndryl is IBM's former infrastructure-services division, spun off as the world's largest manager of other people's IT systems: the mainframes and data centers of banks, airlines and governments run because someone at Kyndryl watches them. It was born with low-margin contracts it has spent years repricing.

What will shape its future

  • Repricing IBM-inherited contracts, its thesis's margin lever.
  • Modernization and cloud: selling new consulting atop the old installed base.
  • The managed mainframe's secular decline, the clock it races against.

Breakdown by area

I.Growth
8

EPS growth: -19% · Revenue growth: -4.6%

II.Profitability
35

Net margin: 0.6% · ROE: 8.1% · ROIC: 5%

III.Financial health
43

Net debt/EBITDA: 3.24x · FCF: 1%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 100 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 10%
ROEbeats 25%
Growthbeats 3%
Cash generationbeats 9%
Less debtbeats 12%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Kyndryl Holdings, Inc. strengths

  • It has turned profitable after years of losses.

Kyndryl Holdings, Inc. risks and weaknesses

  • Declining revenue (-4.6% annualized).
  • Declining earnings per share (-19% annualized).
  • Its net debt has grown over the period.
  • Thin margins (net margin of 0.6%), little cushion for setbacks.

Kyndryl Holdings, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
202019,352-2,007-408185
202118,657-2,304-871882
202317,026-1,374-841,263
202416,052-340-1971,473
202515,0572523371,243
202615,0921983403,077

Between 2020 and 2026, revenue went from $19,352M to $15,092M (-22%) and net income went from -$2,007M to $198M (+110%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended June 30, 2026, versus the quarter ended June 30, 2025 (SEC filings):

  • Revenue-3.3%
  • Net income-198.2%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score3729
  • Net margin1.3%0.6%
  • ROE16.9%8.1%
  • FCF margin2.3%1%
  • Net debt/EBITDA2.43×3.24×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Kyndryl Holdings, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Kyndryl Holdings, Inc. a good company to invest in?

In terms of business quality, Kyndryl Holdings, Inc. scores 29 out of 100 in our analysis, placing it as a company with demanding fundamentals. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Kyndryl Holdings, Inc. a profitable company?

Kyndryl Holdings, Inc. is profitable, with a net margin of 0.6%, though a thin one.

Does Kyndryl Holdings, Inc. have a lot of debt?

Yes, its leverage is high: net debt is 3.24 times its EBITDA, and it has been rising.

Is Kyndryl Holdings, Inc. growing?

Its revenue has fallen 4.6% annualized in recent years.

Does Kyndryl Holdings, Inc. generate cash?

Yes. It converts about 1% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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