How Kyndryl’s New Agentic AI Mainframe Services Could Reshape the Investment Case for KD Investors

• In November 2025, Kyndryl announced new AI-powered mainframe services that integrate agentic AI, IBM Watsonx Assistant for Z, and its Kyndryl Bridge platform to help IBM z/OS customers modernize operations, automate decision-making, and expand AI use across hybrid IT environments.
• An interesting aspect is how Kyndryl is packaging its decades of mainframe expertise into an AI assistant and agentic workflows aimed at easing talent shortages while pushing AI inferencing closer to core transactional data for use cases like fraud detection and insurance processing.
• We’ll now examine how this expansion of agentic AI-powered mainframe services could influence Kyndryl’s existing investment narrative around AI, modernization, and higher-margin growth.

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Kyndryl Holdings Investment Narrative Recap

To own Kyndryl, you need to believe it can pivot its large base of legacy mainframe and infrastructure contracts into higher margin, AI and modernization work while stabilizing revenue. The new agentic AI-powered mainframe services support that shift by deepening Kyndryl’s role in customers’ core systems, but they do not remove the near term risk that delays or non renewals in older “focus accounts” could continue to weigh on reported growth and introduce earnings volatility.

Among recent announcements, Kyndryl’s expanded share repurchase authorization to US$700 million is most relevant here, because it underscores management’s confidence in the company’s progress as it moves away from pre spin, lower margin contracts. For investors watching catalysts, the combination of AI infused mainframe offerings, growing Kyndryl Consult and hyperscaler work, and ongoing buybacks all feed into the same question of how quickly the revenue mix can tilt toward newer, higher margin deals.

Yet while AI services and buybacks are encouraging, investors should also be aware that Kyndryl still faces concentrated revenue risk from aging legacy contracts and...

Read the full narrative on Kyndryl Holdings (it's free!)

Kyndryl Holdings’ narrative projects $16.7 billion revenue and $1.1 billion earnings by 2028.

Uncover how Kyndryl Holdings' forecasts yield a $37.60 fair value, a 44% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community span roughly US$26 to US$74 per share, showing a wide range of individual views. When you set that against Kyndryl’s reliance on replacing legacy, lower margin contracts with newer AI and modernization work, it highlights why investors may want to compare several perspectives before forming expectations about future performance.

Explore 7 other fair value estimates on Kyndryl Holdings - why the stock might be worth over 2x more than the current price!

Build Your Own Kyndryl Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Kyndryl Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Kyndryl Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Kyndryl Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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