CluenexKyndryl KD
Kyndryl scores weak on business quality (2.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Kyndryl does
Kyndryl Holdings designs, builds, manages, and modernizes mission-critical technology systems for enterprise clients, generating revenue primarily through long-term IT infrastructure services contracts. The company is pivoting toward higher-margin advisory and managed services to stabilize top-line revenue after years of contraction.
- What it does best
Kyndryl maintains massive global scale in IT infrastructure management, anchoring multi-billion dollar enterprise systems. However, its gross margin sits at 21.8%, lagging peers like CTSH at 33.4%, leaving little room for operational missteps.
- The main risk
Consensus price targets recently saw a steep 26.0% cut to $14.37, reflecting ongoing market skepticism over top-line stagnation as revenue slipped from $16.1B in 2024 to $15.0B in 2026.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin rests at a thin 3.9% with a net margin of 0.6%, landing in the sector's bottom quartile for profitability and proving that scale has not yet translated into earnings power.
Switching costs form a narrow moat by locking enterprise clients into complex, multi-year infrastructure management contracts. Gross margin ranks in the sector's bottom quartile at just 8th percentile.
Revenue growth crawls at 0.2%, showing a slight stabilization after historical annual declines from $19.4B in 2020 down to $15.0B in 2026.
Total debt sits at $4.1B against $2.6B in cash, producing a heavy debt-to-equity ratio of 3.5. Free cash flow reached $150M, leaving interest coverage at a thin 5.6x.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on KD
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Kyndryl scores weak on the Cluenex quality check (2.3 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 4, 2026.
See KD today
- Today's verdict on KD, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Kyndryl (KD)”, https://cluenex.com/stocks/kd/, data as of Oct 10, 2026.