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Kyndryl Holdings

KD on NYSE. Kyndryl sells information technology services to businesses and government agencies. Market value $2.5bn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to March 2026.

The company doesn't report operating profit, so we work it out from pre-tax profit and interest.

Should I look at this?

Look carefully before going further

Why it could be worth it

What to watch out for

Read the warning sign in its own filings

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
past 12 months to June 2026
5.9%fair

For every $100 of what the whole company costs, it produced $5.85 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026
19.3×full

You pay 19.3 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to March 2026
-1.3%five-year median

Each dollar kept in the business earns -1 cents a year. Above 10 is good.

Quality score: 8 of 100. Price score: 71 of 100. Our list needs 70 on quality and 60 on price.

$11.61 a share, 15% above its 1-year low

Over the past year the price has ranged from $10.10 to $30.99.

Pays no dividend

Prices from Monday’s close (5 October).

Five years of cash, in billions

-0.9
-0.1
-0.2
0.3
0.3
0.1
2021202320242025202612 monthsto Jun '26

Spare cash swings from quarter to quarter here: $148 million in the past 12 months, $340 million in the year to March 2026.

Revenue
$18.7bn$17.0bn$16.1bn$15.1bn$15.1bn
Operating margin
-9.9%-4.4%-0.3%3.6%3.3%
Debt to equity
1.212.453.332.725.53
Shares outstanding
0.23bn0.23bn0.23bn0.23bn0.22bn

Health checks

  • Free cash flow positive2 of 5 years
  • Accounting looks honest (Beneish)Nothing unusual
  • Financial strength (Piotroski)5 of 8 checks we could run
  • Profit backed by cash (accruals)Yes
  • Debt5.53× equity
  • Revenue growth, five yearsShrinking, 4.9% a year
  • Buying back its own sharesYes, 4% fewer since 2021

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $3.6 billion last quarter, down 3% on a year ago.
  • A loss of $55 million, after a profit of $56 million a year ago.
  • Spare cash over the past 12 months: $148 million, down from $240 million.
  • 8% fewer shares than a year ago. Each share owns a bit more of the company.
  • Debt is $4.4 billion more than cash, up from $1.8 billion a year ago.
  • Sales grew on a year ago in 1 of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$3.8bn
December 2024$3.7bn
March 2025$3.8bn
June 2025$3.7bn
September 2025$3.7bn
December 2025$3.9bn
March 2026$3.8bn
June 2026$3.6bn
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024-$43m
December 2024$215m
March 2025$69m
June 2025$56m
September 2025$68m
December 2025$57m
March 2026$17m
June 2026-$55m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
29 May 2026
Next quarterly (estimated, 10-Q)
4 November 2026

Who owns it

4 long-term investors we follow own it, unchanged from 4 last quarter. 671 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

5 investors own more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 1 sold $177,248.

  • Khurana Vineet
    SVP & Global Controller
    Sold
    Date
    5 December 2025
    Shares
    6,641
    Price
    $26.69
    Value
    $177,248

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

1 serious warning sign in Kyndryl Holdings’ filings.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 29 May 2026, plus the 10-Q filed 5 Aug 2026 and 4 later 8-Ks.

  • Weak checks on its own accounts

    Serious

    The company said its checks on its own accounts did not work at the end of its latest quarter. Mistakes could slip into the numbers.

    “Based on that evaluation, the Chief Executive Officer and the Interim Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were not effective as of June 30, 2026 due to the material weaknesses in internal control over financial reporting described below.”
    Show the full paragraph
    The Company’s management evaluated, with the participation of the Chief Executive Officer and the Interim Chief Financial Officer, the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of June 30, 2026, the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Interim Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were not effective as of June 30, 2026 due to the material weaknesses in internal control over financial reporting described below.

    From the 10-Q filed 5 August 2026, Part I, Item 4. Controls and Procedures. Read it in the filing

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • It carries a lot of debt: 5.5× its equity.
  • Sales have shrunk: 4.9% a year.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.