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NEW YORK - Kyndryl (NYSE:KD), a $9.92 billion market cap IT services provider whose stock has surged 67% over the past year, announced Thursday the launch of its Microsoft Acceleration Hub aimed at advancing artificial intelligence adoption and digital transformation for enterprise customers. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, suggesting potential upside for investors.
The new hub, developed in collaboration with Microsoft, combines Kyndryl Consult services with Microsoft technologies to support the deployment of tailored AI solutions using Microsoft Azure AI Foundry and Copilot across the Microsoft stack. It will focus on building industry-specific solutions leveraging AI to serve customers. As a prominent player in the IT Services industry with annual revenue of $15.06 billion, Kyndryl maintains a strong financial health score according to InvestingPro analysis.
The initiative will utilize existing physical and virtual innovation labs globally, including Kyndryl’s new AI Innovation Lab in Liverpool, serving as collaborative environments for ideation, prototyping, and deployment of AI solutions.
"We are confidently doubling down on our successful collaboration with Microsoft," said Ismail Amla, Global Leader of Kyndryl Consult, in a press release statement.
Stephen Boyle, Global Leader of SI & Advisory Partners at Microsoft, described the hub as "the next evolution of our strategic collaboration" that combines Kyndryl’s industry expertise with Microsoft’s cloud and AI capabilities.
To support the initiative, Kyndryl has invested in workforce training, with more than 16,000 employees earning over 26,000 Microsoft certifications. The company has also achieved the AI Platform on Microsoft Azure specialization and renewed its Azure Expert MSP designation, a status achieved by less than 2% of Microsoft’s partner ecosystem.
Anders Bjørnrud, CTO of Care Safety Innovations, expressed optimism about the hub’s potential to streamline AI adoption and improve services for customers, particularly in providing "smarter and more efficient home care to patients and caregivers."
Kyndryl provides mission-critical enterprise technology services to thousands of customers in more than 60 countries. Analysts expect the company to remain profitable this year, with detailed financial projections and 12 additional ProTips available on InvestingPro, including comprehensive valuation metrics and growth forecasts in the Pro Research Report.
In other recent news, Kyndryl has been active with several strategic developments. Oppenheimer has raised Kyndryl’s stock price target to $55, citing a clearer path to growth with expected earnings per share of approximately $5. The firm anticipates mid-single-digit percentage topline growth in Kyndryl’s Cloud and Consult segments by fiscal year 2028. Additionally, Kyndryl announced a strategic partnership with Databricks to enhance AI adoption, combining their expertise to support IT infrastructure modernization. The company is also collaborating with the Virginia DMV to overhaul its IT systems, shifting to a cloud-native architecture to improve transaction processing. Expanding its cloud services, Kyndryl has enhanced its Distributed Cloud services through a collaboration with Microsoft, focusing on operational efficiency and innovation. In terms of leadership changes, Xerxes Cooper, Petra Goude, Jamie Rutledge, and Hassan Zamat have taken on new roles, each expected to contribute to Kyndryl’s strategic initiatives and growth. These developments underscore Kyndryl’s ongoing efforts to support enterprise technology services across various sectors.
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