$KD

Kyndryl Holdings (KD) reported Q2 FY27 revenue of $3.65B, down 1.9% YoY, but margins expanded with adjusted EBITDA at $699M (19.1% margin). AI-driven services and Kyndryl Consult grew, with signings up 34%. Shares rose 37.25% post-results. The company maintains a strong balance sheet and reaffirmed its full-year free cash flow outlook of $400M-$500M.

Kyndryl (NYSE: KD) opened a new Cyber Defense Operations Center in Paris, focusing on AI-enabled intelligence, automated response, and integrated visibility. The center aims to help organizations navigate increasing complexity and strengthen cyber resilience, supported by Kyndryl Bridge, an AI-powered platform. Kyndryl is the world's largest IT infrastructure services provider, serving customers in over 60 countries.

Kyndryl Holdings (NYSE:KD), an enterprise IT infrastructure provider, has gained 19% in a month, trading at $14.35. The company, spun off from IBM in 2021, has improved profit margins by cutting low-margin contracts and building a $2B cloud business. It trades at 6.8x forward earnings and 0.19x sales, with ProPicks AI models seeing a +23.1% upside to $17.66.

Kyndryl was named a leader in the IDC MarketScape for worldwide digital workplace services, evaluated on AI capabilities, employee experience, and other factors. The company's Connected Experience proposition focuses on experience, security, and sustainability, delivered through Kyndryl Consult and Kyndryl Bridge. Key strengths include security leadership, platform-anchored delivery, and customer-validated partnerships.

Zilow Group (Z) and Quantinuum (QNT) each rose 11.05%, while Recursion Pharmaceuticals (RXRX) and Telefonaktiebolaget LM Ericsson (ERIC) gained 11.23% and 11.87%, respectively. Kyndryl Holdings (KD) climbed 11.87% after a deal with Toyota Group. Zilow and peers benefited from falling Treasury yields, while Morgan Stanley upgraded Quantinuum with a 69% upside target. Recursion partnered with Sanofi, and Ericsson reported better-than-expected Q3 earnings.

Kyndryl completed a data center migration for CLS, part of CLS's multi-year tech modernization. CLS's first settlement cycle in the new environment processed nearly 2 million transactions worth over $9 trillion. The project aims to improve security, resilience, and operational flexibility for CLS's FX settlement services, which are used by over 75 major financial institutions and 38,000 other organizations.

Kyndryl (NYSE: KD) and Toyota Systems are collaborating with Toyota Finance to modernize IT operations using agentic AI. The project aims to enhance infrastructure design and change management, with Kyndryl's AI framework being applied to Toyota Finance's IT operations. The initiative seeks to improve efficiency, standardize quality, and reduce decision-making time, while maintaining corporate governance standards.

Kyndryl and WPP expanded their partnership to include business platform transformation, global marketing, and joint go-to-market programs. Kyndryl will support WPP's enterprise technology modernization, while WPP will be Kyndryl's preferred global marketing partner. Both aim to help clients modernize operations and transform core businesses, with a focus on AI and platform modernization.

Kyndryl opened its first U.S. AI innovation lab in Frisco, Texas, on Sept. 30, planning to create up to 300 jobs in AI and tech roles over four years. The lab will focus on AI development and collaboration with customers, according to the company. Kyndryl is an IT infrastructure services provider spun off from IBM in 2021.

Kyndryl (NYSE:KD) and WPP have expanded their partnership to include technology transformation, marketing collaboration, and joint initiatives. Kyndryl will modernize WPP's platforms using AI, aligning with WPP's Elevate28 strategy. The deal includes platform transformation, marketing services, and joint go-to-market efforts, aiming for cost savings and growth.