Kyndryl (NYSE:KD) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Kyndryl reported a quarterly earnings per share (EPS) of $0.29, missing analysts' expectations of $0.48 by $0.19.
• Shares traded up $0.35 to $36.73 after the earnings announcement, with a market capitalization of $8.50 billion.
• Equities analysts have mixed views, with Susquehanna lowering its target price to $43 while Oppenheimer raised theirs to $55.

Kyndryl (NYSE:KD - Get Free Report) issued its earnings results on Monday. The company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.36 by $0.01, Briefing.com reports. The business had revenue of $3.74 billion during the quarter, compared to analysts' expectations of $3.83 billion. Kyndryl had a return on equity of 15.97% and a net margin of 1.67%. Kyndryl's revenue was up .1% compared to the same quarter last year. During the same quarter last year, the firm posted $0.13 earnings per share. Kyndryl updated its FY 2026 guidance to EPS.

Kyndryl Stock Up 1.0%

KD stock opened at $36.73 on Tuesday. Kyndryl has a twelve month low of $21.34 and a twelve month high of $44.20. The company has a market cap of $8.50 billion, a PE ratio of 35.66, a price-to-earnings-growth ratio of 3.95 and a beta of 1.91. The business's 50-day simple moving average is $40.04 and its 200 day simple moving average is $37.23. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 2.29.

Insiders Place Their Bets

In related news, SVP Vineet Khurana sold 26,451 shares of Kyndryl stock in a transaction dated Monday, June 2nd. The stock was sold at an average price of $39.14, for a total transaction of $1,035,292.14. Following the sale, the senior vice president directly owned 73,278 shares of the company's stock, valued at $2,868,100.92. This trade represents a 26.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Kyndryl

A number of institutional investors have recently added to or reduced their stakes in KD. Royal Bank of Canada boosted its holdings in shares of Kyndryl by 50.2% in the 1st quarter. Royal Bank of Canada now owns 148,178 shares of the company's stock worth $4,653,000 after acquiring an additional 49,504 shares in the last quarter. Integrated Wealth Concepts LLC boosted its holdings in shares of Kyndryl by 15.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 8,025 shares of the company's stock worth $252,000 after acquiring an additional 1,093 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Kyndryl by 1.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 733,068 shares of the company's stock worth $23,018,000 after acquiring an additional 11,177 shares in the last quarter. 71.53% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Susquehanna cut their price objective on Kyndryl from $46.00 to $43.00 and set a "positive" rating for the company in a report on Wednesday, April 23rd. Oppenheimer increased their price objective on Kyndryl from $47.00 to $55.00 and gave the stock an "outperform" rating in a report on Tuesday, July 8th. Finally, Wall Street Zen lowered Kyndryl from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 12th.

About Kyndryl

Kyndryl Holdings, Inc operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services.