Kyndryl Financial Momentum Insight

2 months ago

Lou

"Yeah, it seems like the drop in revenue is kind of subsiding. The expansion in margins, I think, is where you're seeing a little bit of momentum. So, I do like the momentum in the business, but until we see more, until you have a much higher margin business in, like I said, an industry where you should have a fair amount of tailwinds as companies are spending more on their IT infrastructure, spending more on AI. Obviously, a lot of that money isn't going to Kindle, but it's going somewhere. Can they sort of claw that into their business? We'll see. I think there's potential, but it can't go higher than a six with their financials as they are today."

Lou observes that while KD's revenue decline is easing and margins are expanding, the company's financial performance remains cautious until clearer high-margin improvements emerge from tailwinds in IT infrastructure and AI spending.

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