Kyndryl Holdings (KD) Extends Hertz Partnership While Navigating Deal Slippages

Kyndryl Holdings, Inc. (NYSE:KD) is one of the best affordable tech stocks to buy right now. On February 3, Guggenheim analyst Jonathan Lee maintained a Buy rating on Kyndryl Holdings, Inc. (NYSE:KD) and lowered the price target to $28 from $30. Lee made this adjustment in a preview ahead of Kyndryl’s third-quarter earnings report, citing concerns about potential deal slippages that could impact Kyndryl’s revenue growth outlook for FY2026.

Lee expects signings to improve recent deal slippages. However, he sees risk that management trims its FY26 revenue growth outlook to reflect deal ramps. Nonetheless, he noted that management’s second-half growth bridge should support a relatively better second half of fiscal 2026.

Independent of the analyst action, on January 23, Kyndryl extended its technology services agreement with The Hertz Corporation for five more years. The deal continues a partnership between the two companies, under which Kyndryl has been supporting Hertz’s technology transformation initiatives.

During the extension period, Kyndryl will leverage its Agentic AI Framework and Kyndryl Consult services to modernize Hertz’s technology ecosystem. The Agentic AI Framework is designed to update workflows by deploying AI across the organization’s entire operation. And Kyndryl Consult assists companies in transitioning from existing infrastructure to AI-native setups.

Kyndryl Holdings, Inc. (NYSE:KD) provides IT infrastructure services, including cloud migration, network management, cybersecurity, and digital workplace solutions. The company was spun off from IBM in 2021 and operates globally with a focus on modernizing legacy systems and supporting digital transformation.

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