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.

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