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NEW YORK - Kyndryl (NYSE:KD), a prominent player in the IT Services industry with annual revenue of $15.06 billion, announced Tuesday a strategic collaboration with Nova Intelligence to speed up AI-driven SAP digital transformation projects for enterprise customers. According to InvestingPro analysis, the company maintains a GOOD financial health score, positioning it well for strategic growth initiatives.
The partnership will combine Kyndryl’s SAP modernization and data transformation services with Nova Intelligence’s multi-agent AI solutions to help customers migrate to SAP Cloud ERP (previously SAP S/4HANA) more efficiently and cost-effectively. This move aligns with Kyndryl’s focus on improving its gross profit margins, which currently stand at 21.11%.
According to the announcement, the collaboration will support customers on their SAP Clean Core journey by transforming legacy custom code into modernized applications. Kyndryl will utilize Nova Intelligence’s AI capabilities to document and analyze custom code and to build Clean Core compliant solutions.
"By leveraging the Nova Intelligence AI agents, Kyndryl is expanding its ability to quickly and efficiently guide customers in migrating to SAP Cloud ERP," said Michael Bradshaw, Kyndryl’s Global Applications, Data and AI Practice Leader.
Emma Qian, Nova Intelligence’s Chief Executive Officer, noted that Kyndryl’s comprehensive SAP expertise makes them "an ideal technology services partner to bring our technology to customers."
The companies claim their combined technologies can significantly accelerate documentation, simplification, and testing of custom code while reducing transformation costs. Kyndryl reported it has already used Nova Intelligence AI agents to modernize two of its own mission-critical legacy SAP custom applications.
This collaboration builds on Kyndryl’s July 2024 announcement as a RISE with SAP delivery partner. The company provides end-to-end support for customers’ SAP Cloud ERP transformation journeys.
The information in this article is based on a press release statement from Kyndryl.
In other recent news, Kyndryl Holdings reported its first-quarter earnings for fiscal year 2026. The company met analysts’ expectations with an earnings per share (EPS) of $0.37. However, Kyndryl fell short on revenue, reporting $3.74 billion compared to the forecasted $3.83 billion, resulting in a revenue miss of 2.35%. These recent developments have caught the attention of investors and analysts alike. The market’s reaction to this revenue shortfall was notable, although specific stock price movements will not be discussed here. Analyst firms have yet to publicly comment on any changes to their ratings following these earnings results. This earnings report marks a significant moment for Kyndryl as they navigate the fiscal year. Investors will be watching closely for any further announcements or adjustments from the company.
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