Kyndryl (NYSE:KD) shares rose nearly 32% over the past month to about $14.86, as the company shakes off skepticism that followed its 2021 spinoff from IBM. Kyndryl has dropped low-margin contracts and cut IBM hardware resales from $4 billion annually to under $2 billion, while hyperscaler-related revenue grew from zero to about $2 billion a year through partnerships with Microsoft Azure, AWS and Google Cloud. In the latest quarter, advisory signings at Kyndryl Consult rose 50% year over year, and the company has deployed about 1,800 proprietary AI agents that generated roughly $1 billion in cumulative operational savings. The stock trades at 6.8 times forward earnings and 0.19 times sales, and management projects free cash flow of $1 billion by 2028.
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