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

​Kyndryl Holdings, Inc. (NYSE:KD) is one of the Best Mid Cap Tech Stocks to Buy According to Analysts. Wall Street has a mixed opinion on Kyndryl Holdings, Inc. (NYSE:KD) since the company released its fiscal Q2 2026 results on November 4. The company posted an EPS of $0.38, which topped estimates by $0.02. However, the revenue of $3.72 billion missed estimates by $119 million.

​Management noted that Kyndryl Consult and Hyperscaler-related revenue were key growth drivers during the quarter. Kyndryl Consult posted 25% year-over-year growth and Hyperscaler-related revenue doubled during the same time. However, the total revenue decreased 1.40% and fell short of expectations due to longer sales cycles. Moreover, management is also focusing on margin expansion, which has led to removing low-margin hardware and software content from customer contracts.

​On the bright side, Kyndryl Holdings, Inc.’s (NYSE:KD) book-to-bill ratio remains above 1, and management reaffirmed its fiscal 2026 outlook, expecting revenue growth in the second half of the year, driven by a stronger backlog.

​After the release on November 6, James Faucette from Morgan Stanley lowered the firm’s price target on the stock from $30 to $28, while reiterating a Hold rating. On the same day, Tien Tsin Huang from J.P. Morgan also reduced the price target from $45 to $40, but maintained a Buy rating on the stock.

​Kyndryl Holdings, Inc. (NYSE:KD) is based in New York City. The company designs, builds, and manages critical technology systems for enterprises worldwide, increasingly layering AI-native automation atop its core IT modernization services.

While we acknowledge the potential of KD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.