Why Is KYNDRYL HLDGS INC (KD) Stock Moving Today?

Kyndryl Holdings Inc (KD) stock is moving lower by 3.8% as of 11:00 AM ET. The decline follows a disappointing Q1 2027 earnings report that missed revenue and earnings estimates. The company reaffirmed its full-year sales guidance but faces ongoing pressure from IBM headwinds and soft demand in core markets.

What Happened

Kyndryl reported Q1 adjusted earnings per share of $(0.12), missing the $(0.07) estimate. Revenue came in at $3.618 billion, below the $3.661 billion estimate. The earnings call highlighted AI-led modernization and growth with hyperscalers as key areas of focus, but these gains were not enough to offset broader challenges. The company announced an intent to acquire healthcare IT leaders to expand AI-led modernization for U.S. hospitals and health systems, though terms were not disclosed. Kyndryl also reaffirmed its FY2027 sales guidance of $14.790 billion to $15.092 billion, slightly below the $14.903 billion estimate. Meanwhile, JPMorgan maintains an Underweight rating on Kyndryl and raised its price target to $14.

What The Data Shows

The stock opened at $13.29, a 0.5% gap down from the prior close, and has since fallen to $12.85. The session low of $12.75 was reached at 10:10 AM ET. Volume has reached 0.3 million shares, or 0.1x the 3-month average. Kyndryl has a market cap of $3.0 billion and a P/E ratio of 36.8. Revenue has declined by 0.6% in the trailing twelve months, with a net margin of 0.6%. The stock is currently trading within its 52-week range of $10.10 to $33.90.

What To Watch

Kyndryl’s Q1 2027 earnings call transcript from The Motley Fool will remain a key read for investors. Broader coverage and analyst reactions should be monitored ahead of any follow-up guidance or corporate updates.