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) posted its earnings results on Monday. The company reported $0.37 EPS for the quarter, beating analysts' consensus estimates of $0.36 by $0.01, Briefing.com reports. The company had revenue of $3.74 billion for the quarter, compared to analysts' expectations of $3.83 billion. Kyndryl had a net margin of 1.97% and a return on equity of 19.88%. Kyndryl's revenue for the quarter was up .1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.13 earnings per share. Kyndryl updated its FY 2026 guidance to EPS.

Kyndryl Stock Up 2.4%

Kyndryl stock traded up $0.73 during mid-day trading on Friday, hitting $30.91. The company had a trading volume of 969,515 shares, compared to its average volume of 2,299,179. The stock has a market cap of $7.15 billion, a price-to-earnings ratio of 25.54, a PEG ratio of 3.23 and a beta of 1.91. Kyndryl has a 1 year low of $22.01 and a 1 year high of $44.20. The company has a quick ratio of 1.07, a current ratio of 1.05 and a debt-to-equity ratio of 2.24. The business has a fifty day moving average of $39.46 and a 200 day moving average of $37.06.

Insider Buying and Selling

In other Kyndryl news, SVP Vineet Khurana sold 26,451 shares of the stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $39.14, for a total value of $1,035,292.14. Following the transaction, the senior vice president directly owned 73,278 shares in the company, valued at $2,868,100.92. This represents a 26.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kyndryl

Several hedge funds have recently added to or reduced their stakes in KD. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Kyndryl by 1.5% during the first 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 during the last quarter. Royal Bank of Canada lifted its holdings in shares of Kyndryl by 50.2% during the first quarter. Royal Bank of Canada now owns 148,178 shares of the company's stock worth $4,653,000 after purchasing an additional 49,504 shares during the period. Finally, Integrated Wealth Concepts LLC lifted its holdings in shares of Kyndryl by 15.8% during the first quarter. Integrated Wealth Concepts LLC now owns 8,025 shares of the company's stock worth $252,000 after purchasing an additional 1,093 shares during the period. 71.53% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on KD shares. Susquehanna reduced their price target on shares of Kyndryl from $46.00 to $43.00 and set a "positive" rating on the stock in a research report on Wednesday, April 23rd. Wall Street Zen cut shares of Kyndryl from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 12th. Finally, Oppenheimer upped their target price on shares of Kyndryl from $47.00 to $55.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 8th.

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.