Does Kyndryl Stock Lead the Pack?
Kyndryl‘s stock has significantly underperformed over the past year, plummeting 66%. How does it truly stack up against peers in the evolving IT services landscape as of March 2, 2026? A closer look reveals challenged profitability with low LTM operating (4.3%) and FCF (2.0%) margins, minimal 0.1% LTM revenue growth, and a moderate valuation (PE 11.69). This suggests limited upside potential, especially as governance concerns persist and its turnaround efforts face scrutiny.
- KD’s 4.3% operating margin, lowest among peers (IBM 17.7%), reflects its strategic shift from low-margin legacy contracts for profitability.
- KD’s 0.1% LTM revenue growth is low, lagging ACN/IBM/CTSH, but outpacing DXC, due to its strategic shedding of low-margin legacy contracts.
- KD’s stock is down 66.3% (1yr), underperforming peers, as investors weigh growth concerns against its 11.7 PE, signaling potential undervaluation.
Here’s how Kyndryl stacks up across size, valuation, and profitability versus key peers.
| KD | ACN | IBM | DXC | CTSH | |
|---|---|---|---|---|---|
| Market Cap ($ Bil) | 2.9 | 127.5 | 223.5 | 2.1 | 30.4 |
| Revenue ($ Bil) | 15.1 | 70.7 | 65.4 | 12.7 | 21.1 |
| PE Ratio | 11.7 | 16.8 | 28.3 | 5.0 | 13.6 |
| LTM Revenue Growth | 0.1% | 6.6% | 4.5% | -3.1% | 7.0% |
| LTM Operating Margin | 4.3% | 14.4% | 17.7% | 5.3% | 15.8% |
| LTM FCF Margin | 2.0% | 16.3% | 18.1% | 6.5% | 12.3% |
| 12M Market Return | -66.3% | -39.6% | -2.8% | -33.6% | -22.4% |
For more details on Kyndryl, read Buy or Sell KD Stock. Below we compare KD’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
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| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| KD | 0.1% | -6.2% | -5.7% | 284.2% | |
| ACN | 6.6% | 7.4% | 1.2% | 4.1% | |
| IBM | 4.5% | – | 1.4% | 2.2% | 5.5% |
| DXC | -3.1% | -5.8% | -5.3% | -11.3% | |
| CTSH | 7.0% | 7.0% | 2.0% | -0.4% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| KD | 4.3% | 3.7% | 0.6% | -2.3% | |
| ACN | 14.4% | 14.7% | 14.8% | 13.7% | |
| IBM | 17.7% | – | 16.1% | 15.9% | 13.5% |
| DXC | 5.3% | 5.4% | -0.0% | -7.9% | |
| CTSH | 15.8% | 15.8% | 15.3% | 15.1% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| KD | 11.7 | 24.4 | -23.3 | -3.4 | |
| ACN | 16.8 | 21.8 | 30.4 | 32.2 | |
| IBM | 28.3 | – | 45.3 | 26.7 | 90.0 |
| DXC | 5.0 | 6.8 | 43.0 | -9.2 | |
| CTSH | 13.6 | 18.2 | 17.0 | 17.9 |
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