📊 KD Key Takeaways
Is KD a Good Investment? Thesis Analysis
Kyndryl exhibits structural financial stress with negative free cash flow (-$42M) as capital expenditure ($492M) exceeds operating cash generation ($450M), indicating unsustainable cash burn. Combined with high financial leverage (2.43x Debt/Equity), razor-thin margins (2.5% operating, 1.6% net), and below-critical liquidity (0.86x current ratio), the company faces significant financial flexibility constraints.
Why Buy KD? Key Strengths
- Operating cash flow of $450M demonstrates core business cash generation capability despite margin pressure
- Adequate interest coverage ratio of 4.7x supports continued debt service without immediate distress
- Substantial cash position of $1.3B provides near-term liquidity buffer for operations
KD Investment Risks to Consider
- Negative free cash flow (-$42M) with CapEx exceeding operating cash flow is unsustainable and indicates capital intensity outpacing profitability
- High leverage at 2.43x Debt/Equity combined with thin margins (2.5% operating, 1.6% net) leaves minimal margin for error in business performance or economic downturns
- Current ratio of 0.86x below 1.0 threshold signals potential short-term liquidity stress and working capital constraints
Key Metrics to Watch
- Free cash flow trend and timeline to positive territory; CapEx rationalization progress
- Operating margin expansion initiatives and pricing power sustainability
- Debt/Equity ratio trajectory and debt reduction milestones below 2.0x
KD Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
KD Profitability Ratios
KD vs Technology Sector
How Kyndryl Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KD Overvalued or Undervalued?
Based on fundamental analysis, Kyndryl Holdings, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
KD Balance Sheet & Liquidity
KD 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Kyndryl Holdings, Inc.'s revenue has declined by 16% over the 5-year period, indicating business contraction. The most recent EPS of $-6.06 indicates the company is currently unprofitable.
KD Growth Metrics (YoY)
KD Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.7B | $11.0M | $0.05 |
| Q3 2025 | $3.7B | -$12.0M | $-0.05 |
| Q2 2025 | $3.7B | -$32.0M | $-0.14 |
| Q1 2025 | $3.7B | $11.0M | $0.05 |
| Q3 2024 | $3.9B | -$12.0M | $-0.05 |
| Q2 2024 | $4.1B | -$142.0M | $-0.62 |
| Q1 2024 | $4.2B | -$141.0M | $-0.62 |
| Q3 2023 | $4.3B | -$106.0M | $-0.47 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KD Capital Allocation
KD SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Kyndryl Holdings, Inc. (CIK: 0001867072)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KD
What is the AI rating for KD?
Kyndryl Holdings, Inc. (KD) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are KD's key strengths?
Claude: Operating cash flow of $450M demonstrates core business cash generation capability despite margin pressure. Adequate interest coverage ratio of 4.7x supports continued debt service without immediate distress.
What are the risks of investing in KD?
Claude: Negative free cash flow (-$42M) with CapEx exceeding operating cash flow is unsustainable and indicates capital intensity outpacing profitability. High leverage at 2.43x Debt/Equity combined with thin margins (2.5% operating, 1.6% net) leaves minimal margin for error in business performance or economic downturns.
What is KD's revenue and growth?
Kyndryl Holdings, Inc. reported revenue of $11.3B.
Does KD pay dividends?
Kyndryl Holdings, Inc. does not currently pay dividends.
Where can I find KD SEC filings?
Official SEC filings for Kyndryl Holdings, Inc. (CIK: 0001867072) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KD's EPS?
Kyndryl Holdings, Inc. has a diluted EPS of $0.77.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Kyndryl Holdings, Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KD stock overvalued or undervalued?
Valuation metrics for KD: ROE of 15.2% (sector avg: 22%), net margin of 1.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy KD stock in 2026?
Our dual AI analysis gives Kyndryl Holdings, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KD's free cash flow?
Kyndryl Holdings, Inc.'s operating cash flow is $450.0M, with capital expenditures of $492.0M. FCF margin is -0.4%.
How does KD compare to other Technology stocks?
Vs Technology sector averages: Net margin 1.6% (avg: 18%), ROE 15.2% (avg: 22%), current ratio 0.86 (avg: 2.5).