Kyndryl Holdings, Inc. (KD) plunged 21% on Tuesday, closing at $28.94 per share due to disappointing earnings in Q1 of fiscal year 2026. Revenues remained flat at $3.7 billion, missing the $3.83 billion forecast. However, net income surged by 409% to $56 million. KD aims for an 18% adjusted EBITDA margin for the full fiscal year.

Kyndryl CEO Martin Schroeter cited progress in key growth areas like Kyndryl Consult and hyperscaler-related activities. While KD shows potential, some AI stocks may offer higher returns. For those seeking a cheap AI stock with upside potential, a free report on the best short-term AI stock is available.

Read more at Yahoo Finance: Kyndryl (KD) Falls 21% as Earnings Disappoint