• In August 2026, Kyndryl Holdings, Inc. announced an expanded alliance with Broadcom Inc. to provide end-to-end consulting and managed services for VMware Cloud Foundation, including AI-ready private clouds, automation, and enhanced cyber recovery capabilities across private and hybrid environments.
• A particularly important aspect of the announcement is the joint investment to train several thousand Kyndryl consultants and architects on VMware Cloud Foundation and agentic AI workflows, deepening its role in modern cloud and AI governance projects for large enterprises.
• We’ll now examine how this expanded VMware Cloud Foundation alliance and its focus on AI-ready private clouds could reshape Kyndryl’s investment narrative.

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Kyndryl Holdings Investment Narrative Recap

To own Kyndryl, you need to believe it can replace shrinking legacy contracts with higher margin cloud and AI services while improving profitability from a low base. The expanded Broadcom alliance strengthens that thesis by deepening Kyndryl’s role in VMware estates, but it does not remove the near term risk that delayed renewals and pushed out deals keep revenue under pressure and earnings volatile.

The Broadcom VMware Cloud Foundation expansion lines up closely with Kyndryl’s recent AWS collaboration, where both companies committed to grow Kyndryl’s certified cloud and AI talent and co develop agentic modernization blueprints. Together, these alliances could reinforce the main catalyst of shifting the mix toward consulting, hyperscaler and AI governance work, though execution complexity and timing of large modernization projects remain key swing factors for results.

Yet beneath this AI ready cloud story, investors should also be aware that...

Kyndryl Holdings' narrative projects $15.2 billion revenue and $472.5 million earnings by 2029. This implies fairly flat yearly revenue growth and a $274.5 million earnings increase from $198.0 million today.

Uncover how Kyndryl Holdings' forecasts yield a $14.10 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Compared with this backdrop, the most bearish analysts were assuming revenue would shrink about 2 percent a year and earnings reach only about US$433 million by 2029, so this new Broadcom alliance could either soften that cautious view or highlight just how much disagreement there is about Kyndryl’s AI services potential.

Explore 5 other fair value estimates on Kyndryl Holdings - why the stock might be worth as much as 49% more than the current price!

Reach Your Own Conclusion

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Kyndryl Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs 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.