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Jim Cramer on Kyndryl: "It's Too Early to Recommend the Stock"

By Syeda Seirut Javed | February 26, 2026, 9:56 AM

Kyndryl Holdings, Inc. (NYSE:KD) is one of the stocks Jim Cramer commented on. A caller asked if KD is a value stock or a value trap. In response, Cramer said:

Okay, Kyndryl had some accounting issues this quarter. I therefore have to put it in the penalty box. We have to see what happens next quarter. It’s too early to recommend the stock. That was a very tough quarter.

Photo by Chris Liverani on Unsplash

Kyndryl Holdings, Inc. (NYSE:KD) provides IT infrastructure and technology services, including cloud, AI, security, and digital workplace solutions. When a caller sought Cramer’s advice on the stock during the episode aired on October 27, 2025, the Mad Money host responded:

Yeah, the last quarter was not that good, but Martin Schroeter’s going to right that ship. I think you’re buying an inexpensive consulting company right there. Really very good IT work. I think is, I would not buy more right here. I would buy some and then wait to see what the quarter is to see they don’t have another bad quarter. And I don’t mean to say bad, I mean less than expected.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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