Wall Street Has a Mixed Opinion on Kyndryl Holdings (KD), Here’s Why

Core Insights - Kyndryl Holdings, Inc. reported mixed fiscal Q2 2026 results, with an EPS of $0.38 exceeding estimates by $0.02, but revenue of $3.72 billion falling short by $119 million [1][2] Financial Performance - The company experienced a 1.40% decrease in total revenue, attributed to longer sales cycles, despite key growth drivers such as Kyndryl Consult, which grew by 25% year-over-year, and Hyperscaler-related revenue, which doubled [2] - The book-to-bill ratio remains above 1, and management reaffirmed its fiscal 2026 outlook, anticipating revenue growth in the latter half of the year due to a stronger backlog [3] Analyst Ratings - Following the earnings release, Morgan Stanley reduced its price target from $30 to $28 while maintaining a Hold rating [4] - J.P. Morgan also lowered its price target from $45 to $40 but kept a Buy rating on the stock [4] Company Overview - Kyndryl Holdings, Inc. is based in New York City and specializes in designing, building, and managing critical technology systems for enterprises globally, with a focus on integrating AI-native automation into its IT modernization services [5]