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NEW YORK and SUNNYVALE, Calif. - Kyndryl (NYSE: KD), the world’s largest IT infrastructure services provider and a prominent player in the IT Services industry with a market capitalization of $7.93 billion, has been certified as a specialized partner for Google Cloud’s AI and Gemini models, the company announced today. The company’s stock has shown remarkable strength, delivering a 58.71% return over the past year. According to InvestingPro analysis, Kyndryl appears undervalued based on its Fair Value calculations. This certification is part of an expanded collaboration aimed at accelerating the modernization of mainframe applications and data using generative AI.
Nirav Mehta, Senior Director of Cloud Infrastructure Solutions at Google Cloud, highlighted the synergy between Google’s AI models and Kyndryl’s mainframe expertise, providing mutual customers with the necessary tools and technology to streamline their modernization processes. "Our mutual customers will have the expertise and leading technology to successfully modernize mainframe applications faster and with more sustainable code," Mehta said.
Kyndryl is introducing a Mainframe Modernization with Gen AI Accelerator Program, designed to assist qualified customers in initiating their modernization journey without initial commitments. With annual revenue of $15.11 billion, the company has substantial resources to support this initiative. InvestingPro subscribers can access 12 additional key insights about Kyndryl’s financial health and growth prospects through the comprehensive Pro Research Report. This program offers a blueprint and plan for modernization, followed by guidance through a phased approach, allowing customers to realize incremental value and make informed decisions regarding their mainframe workloads.
Petra Goude, Global Practice Leader for Core Enterprise & zCloud at Kyndryl, emphasized the transformative capabilities of Google Cloud’s AI-driven solutions, stating that the collaboration will enable customers to "unlock the full potential of their mainframe data, create AI-driven innovations and transform mainframe applications to modern cloud applications with lower risk and faster time to value."
The partnership leverages Kyndryl’s data democratization and Google Cloud’s Mainframe Connector solution to integrate mainframe data with Google Cloud’s BigQuery analytics platform, enhancing customers’ decision-making capabilities through dynamic reporting and AI model training.
Kyndryl and Google Cloud’s joint efforts have already seen success in various industries, including a project with a major insurance provider that involved converting COBOL to Java and migrating applications to Google Distributed Cloud, addressing both digital transformation goals and regulatory requirements.
Kyndryl’s 2024 Mainframe Modernization Survey indicates a significant trend towards cloud migration and AI adoption, with 96% of organizations moving some mainframe workloads to the cloud and 86% adopting AI to expedite the process.
The information in this article is based on a press release statement. For further details on Kyndryl and Google Cloud’s alliance and initiatives, interested parties can visit Kyndryl’s website. Analysts are optimistic about Kyndryl’s future, with net income expected to grow this year. For detailed financial analysis and real-time updates on Kyndryl’s performance metrics, visit InvestingPro, where you can access comprehensive research reports and expert insights.
In other recent news, Kyndryl Holdings, Inc. reported mixed third-quarter results, with earnings surpassing expectations but revenue falling short. The company posted adjusted earnings per share of $0.51, exceeding analyst estimates of $0.43, while revenue reached $3.74 billion, below the forecast of $3.83 billion. Despite the revenue miss, Kyndryl raised its fiscal year 2025 outlook for adjusted earnings and cash flow. In another development, Scotiabank analyst Divya Goyal increased the stock price target for Kyndryl to $45, citing the company’s strong quarterly performance and continued success in consulting services. Additionally, S&P Global Ratings revised its outlook for Kyndryl to positive from stable, acknowledging the company’s progress in transformation initiatives and improved cash flow prospects. Kyndryl also announced the launch of new secure access service edge (SASE) services in collaboration with Palo Alto Networks, aiming to enhance network security for enterprises. Furthermore, Kyndryl extended its credit agreement with a $3.15 billion limit until 2030, reinforcing its financial stability and operational capacity.
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