Kyndryl launches SASE services with Palo Alto Networks

NEW YORK - Kyndryl (NYSE: KD), the world’s largest IT infrastructure services provider with annual revenue of $15.11 billion, announced today the launch of its new secure access service edge (SASE) services. The company’s stock has shown remarkable strength, delivering a 96% return over the past year and currently trading near its 52-week high. According to InvestingPro analysis, Kyndryl maintains a GOOD financial health score, positioning it well for this strategic expansion. This offering is designed to enhance network security for enterprises by supporting Palo Alto Networks (NASDAQ:PANW)’ Prisma SASE, which is powered by Precision AI.

The newly introduced SASE services by Kyndryl aim to provide organizations with a unified cloud-delivered service that integrates network and security, facilitating secure access to business applications, edge, and IoT technologies. The services are a response to the growing need for updated IT infrastructure capable of managing future risks, as indicated by the Kyndryl Readiness Report, which found that while 94% of business leaders prioritize technology modernization, only 39% feel their IT infrastructure is adequately prepared. For investors tracking this development, InvestingPro data reveals that Kyndryl’s net income is expected to grow this year, with analysts predicting continued profitability.

Paul Savill, Global Practice Leader of Network and Edge Computing at Kyndryl, emphasized the importance of upgrading IT infrastructure and cybersecurity measures. He pointed out that nearly half of the world’s mission-critical business technology is outdated or nearing end-of-life. Kyndryl’s SASE services are intended to enable businesses to adopt a zero-trust security approach to protect against cyber threats in real-time.

Kyndryl has undergone its own network modernization, transitioning from an on-premises network architecture to a cloud-first, SASE-based, zero-trust security model. The company’s transformation has resulted in reduced IT operational spend while supporting its global hybrid workforce. Kyndryl’s team, accredited with network security certifications from Palo Alto Networks, is now poised to assist customers in migrating to a SASE solution.

Kristy Friedrichs, Chief Partnerships Officer at Palo Alto Networks, highlighted the significance of implementing a SASE approach for organizations, which requires a substantial transformation. The joint solution from Kyndryl and Palo Alto Networks aims to help organizations scale effectively while managing a hybrid workforce and an expanding threat landscape.

Kyndryl’s SASE services include advisory, design and implementation, and managed services, as well as integration with Kyndryl Bridge, the company’s AI-powered digital business platform. The services build on Kyndryl’s existing partnership with Palo Alto Networks, which already provides customers with access to various security solutions.

For more information, interested parties can visit Kyndryl and Palo Alto Networks’ respective websites. This announcement is based on a press release statement. Investors seeking deeper insights into Kyndryl’s financial health and growth prospects can access comprehensive analysis, including 13 additional ProTips and detailed valuation metrics, through InvestingPro’s exclusive research reports.

In other recent news, Scotiabank (TSX:BNS) analyst Divya Goyal raised the price target for Kyndryl Holdings (NYSE:KD) Inc due to a strong quarter, surpassing market expectations, especially in terms of profitability. The company’s 3As initiatives and the success of its consulting division, Kyndryl Consult, were particularly highlighted. Kyndryl’s commitment to these initiatives has been instrumental in driving margin expansion and value creation.

Kyndryl’s recent quarterly results, however, showed a mixed picture with earnings beating expectations but revenue falling short. The company posted adjusted earnings per share of $0.51, surpassing analyst estimates, but reported revenue of $3.74 billion, below the consensus forecast. Despite this, Kyndryl raised its fiscal year 2025 outlook for adjusted earnings and cash flow.

The company’s solid performance and positive financial outlook led Scotiabank to revise the price target and increase the EV/EBITDA valuation multiple. The firm reaffirmed its Sector Outperform rating, reinforcing its bullish stance on the company’s stock. These developments are part of recent financial news surrounding Kyndryl.

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