News · Kyndryl Holdings, Inc. (KD) · Technology

Kyndryl rises 30.1% after earnings beat and outlook reaffirmation

Session of November 4, 2026 · Published November 5, 2026 · 4 min read

What happened

Kyndryl (KD) rose 30.1% on November 4, 2026, because of quarterly results that beat earnings expectations and a reaffirmation of its fiscal 2027 outlook. The company reported fiscal second quarter 2027 results for the period ended September 30, 2026, with revenues of $3.7 billion, pretax income of $112 million and adjusted net income of $92 million. Zacks noted the company beat earnings expectations with quarterly EPS of $0.42 versus $0.38 expected. The stock opened 15.2% above the previous close and finished the session at $16.84, trading at $3.01 billion market value.

Closing price over the last 30 trading sessions. On November 4, 2026, KD closed at $16.84, up 30.1% on the day and 43.4% higher than 30 sessions earlier.

How big was the move

The session was large for Kyndryl: the stock rose 30.1%, a move 6.3 times a typical daily move for this stock. Trading volume was 3.8 times its 20-day average, while the S&P 500 rose 1.6% on the day and the Technology sector median rose 0.1%, making the stock 30.1 percentage points better than the sector median. Over the last five sessions the stock rose 19.5%, while the S&P 500 over five sessions fell 0.7%; the stock’s market sensitivity is reflected in a beta of 1.37, indicating the stock tends to move more than the market.

Each bar is one day's price change; the outlined bar is November 4, 2026. A typical daily move over the past year was 4.7%, so the latest move equals 6.4 times that. Moves outside the dashed lines (about 9.5%) are unusual.

The technical picture

The stock traded well above its short- and medium-term averages, sitting 24.1% above its 20-day moving average and 30.6% above its 50-day moving average, and 26.1% above its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend despite the recent rally. The Relative Strength Index (14 days) registered 71 (above 70, a level often called overbought). Kyndryl is 41.6% below the 52-week high, its one month change rose 46.7% and its three month change rose 20.4%. One year the stock fell 41.4%, which left it 53.6 percentage points behind the S&P 500 over the same period. Volatility was 75% annualized over 60 days, higher than 91% of its own readings over five years.

Closing price over the past year. KD ends the period 38.8% below its 52-week high, above its 50-day average ($12.89) and above its 200-day average ($13.35).

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $26.37 billion, which grew 75.7% from a year earlier and was near the growth rate one quarter earlier of 75.6%. Diluted earnings per share for the period were $1.44, with earnings per share growth from a year earlier that fell 14.5%. Gross margin was 22.1% (a year earlier: 21.5%), while operating margin was 3.4% (a year earlier: 4.2%). Free-cash-flow margin was 1.1% and return on invested capital was 5.1%. The balance sheet showed net debt of 2.4 times EBITDA and share count over one year decreased by 7.1%.

Quarterly revenue by period end. The latest quarter brought $3.7B, 1.9% less than the same quarter a year earlier.

Valuation metrics point to a relatively low multiple: price to trailing earnings stood at 11.7 times trailing earnings and price to forward earnings was 9.1 times expected earnings, while free-cash-flow yield was 10.1%. The price to trailing earnings figure is lower than 88% of its own readings over the past five years (five-year median: 15.1 times earnings). PromtFinance scores rank Value at 99 (Exceptional), Growth 47 (Neutral), Quality 56 (Neutral), Momentum 31 (Weak), Revisions 4 (Very weak) and Stability 24 (Very weak).

Earnings and analyst expectations

Kyndryl reported on November 4, 2026: earnings per share of $0.42 against $0.38 expected, 9.9% above estimates, and the company reaffirmed its fiscal 2027 outlook. The reported quarter included revenues of $3.7 billion, pretax income of $112 million, net income of $59 million, Adjusted EBITDA of $699 million, adjusted pretax income of $150 million and adjusted net income of $92 million. This marked two consecutive quarters beating estimates, though the average surprise over the last four reports was 9.4% below estimates and the typical two-day reaction after recent reports fell 5.6%. The next report is scheduled for February 8, 2027.

Diluted earnings per share by quarter. The latest quarter shows $0.27, against $0.29 in the same quarter a year earlier.

Analysts number seven with a consensus rating of Hold and a consensus price target of $14.67, which is 12.9% below the closing price. Fourteen percent of analysts rate the stock Buy or Strong Buy.

What to watch

November 4, 2026: quarterly EPS $0.42 versus $0.38 expected, 9.9% above estimates.
Next report: February 8, 2027.
Trading volume on November 4, 2026: 3.8 times its 20-day average and the stock rose 30.1% that day.
Price to trailing earnings: 11.7 times trailing earnings; price to forward earnings: 9.1 times expected earnings.
PromtFinance Value score: 99 (Exceptional).

Full KD analysis: scores, chart and financials →