Early Bird Prime for May 24, 2026
It’s been a year that Kyndryl Holdings $KD ( ▲ 1.82% ) would probably like to forget. The IT infrastructure services provider has seen its stock plummet by a staggering 51.79%.
Just a few days ago, Susquehanna analysts downgraded the stock to Neutral from Positive. They also slashed the price target to $13 from $16. The firm cited three consecutive quarters of declining contract signings, execution challenges, and the ongoing saga of separating client attrition from its former parent company, IBM $IBM ( ▲ 0.34% ). Kyndryl spun off from IBM in 2021, and it is down nearly 70% since going public.
But consider this: with the stock down so much, it might just be the perfect time to snag a tech stock at a bargain price.
Kyndryl reported $1.9 billion in hyperscaler-related revenue in fiscal 2026, up 59% year over year. This suggests that Kyndryl is gaining leverage from cloud partnerships and AI-adjacent demand.
Some bullish write-ups argue that Kyndryl’s stock is being valued like a low-quality legacy IT services business, even as the underlying economics improve. This creates a classic contrarian setup.
Should you buy Kyndryl’s stock right now in 2026, or avoid it? Here’s the answer…
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