Exploring Kyndryl Holdings, Inc. (KD) Investor Profile: Who’s Buying and Why?

You're looking at Kyndryl Holdings, Inc. (KD) and wondering why the market's biggest players are so heavily invested, especially after the stock's significant drop since mid-2025. Honestly, the institutional footprint here is massive-about 71.5% of the stock is held by professional investors, with giants like The Vanguard Group, Inc., FMR LLC, and BlackRock, Inc. leading the pack. They aren't just holding; they're betting on the company's pivot to high-margin services, which is defintely paying off on the bottom line, even as revenue misses expectations. For instance, in the latest Q2 FY 2026 earnings, Kyndryl posted an EPS of $0.38, beating the consensus, driven by a jump in gross margin to 21.53% from 20.14% a year earlier. This margin expansion, plus the Consult revenue growing 25% year-over-year in Q2, is the clear signal that the underlying business transformation is working, making the current share price-around $24.53 as of late November 2025-look like a bargain to those who can wait. Are you seeing the same opportunity for value recovery that these major institutions are?

Who Invests in Kyndryl Holdings, Inc. (KD) and Why?

You're looking at Kyndryl Holdings, Inc. (KD) and trying to figure out if the big money agrees with your thesis. Here's the quick takeaway: institutional investors are the dominant force, buying into a clear turnaround story fueled by massive new signings and a dramatic swing to profitability in the 2025 fiscal year. That's the real driver.

As a seasoned analyst, I see a classic post-spin-off re-rating happening here. The ownership structure is heavily skewed, which means the stock price is defintely sensitive to the trading decisions of a few major players. To be fair, that's how most large-cap stocks work, but the concentration here makes it a little more volatile.

Key Investor Types: The Institutional Powerhouse

The investor base for Kyndryl Holdings, Inc. is not evenly distributed. It is overwhelmingly controlled by institutional money-the mutual funds, pension funds, and asset managers who buy on behalf of millions of clients. As of mid-2025, institutional investors collectively own approximately 80% of the company's total shares outstanding.

This leaves the general public, or retail investors, holding a stake of around 19%. Honestly, this split tells you that the stock is viewed as a serious, index-eligible holding, not a speculative retail favorite. Insiders, like the CEO Martin Schroeter, hold a small but meaningful stake, with insiders collectively owning around 2% of the stock.

The top holders are the names you'd expect to see in a major enterprise IT services firm. They are the passive giants, but their sheer size dictates the stock's stability. Here's a snapshot of the largest institutional stakes as of the third quarter of 2025:

Note: Market values are based on various reporting dates near Q3 2025.

Investment Motivations: The Turnaround Story

The motivation for these large positions boils down to a fundamental shift: Kyndryl Holdings, Inc. is moving from a legacy cost center to a profitable, focused entity. The numbers from the fiscal year ended March 31, 2025, are what convinced the market.

The most compelling data point is the financial pivot. The company reported a net income of $252 million in fiscal year 2025, a massive swing from a net loss of $340 million in the prior year. That's a clear signal of operational improvement. Also, the company's strategic growth areas are firing on all cylinders, which is what matters for future revenue.

• Growth Prospects: Record signings reached $18.2 billion in fiscal year 2025, a 46% year-over-year jump.
• Consulting Momentum: Kyndryl Consult revenues grew 26% in fiscal 2025, showing success in higher-margin, advisory work.
• Profitability: Adjusted EBITDA hit $2.5 billion in fiscal year 2025, a 6% year-over-year increase.

This is a story of value creation through operational efficiency and targeted growth, not just cost-cutting. Investors are betting the firm can continue to shed low-margin contracts while growing its high-value consulting business.

Investment Strategies: Long-Term Holders vs. Active Managers

The strategies employed by Kyndryl Holdings, Inc. investors fall into two main buckets. You have the long-term, passive index funds, and the more active managers playing the turnaround angle.

Passive/Long-Term Holding: Firms like Vanguard Group Inc. and BlackRock, Inc. are largely passive investors. They hold Kyndryl Holdings, Inc. because it's part of major indices like the S&P MidCap 400 (which is why you see the iShares Core S&P Mid-Cap ETF as a top holder). Their strategy is buy-and-hold; they are in for the long haul, tracking the market's performance. They are not chasing short-term gains, but they do benefit from the company's prudent capital allocation, such as the share repurchase program, which saw 7.3 million shares bought back for $249 million as of September 30, 2025.

Value/Turnaround Investing: Active institutional managers and hedge funds are employing a value investing strategy. They see the stock as undervalued relative to its new, higher-margin business mix and its ability to generate free cash flow-which was $446 million in fiscal year 2025. They are buying on the expectation that the market will eventually re-rate the stock to reflect its improved financial health. If you want to dive deeper into the fundamentals, you should check out Breaking Down Kyndryl Holdings, Inc. (KD) Financial Health: Key Insights for Investors.

The near-term risk is also a strategy signal. The unusually large volume of put options traded in November 2025 suggests that some investors, likely hedge funds, are either taking a bearish short-term position or hedging their long positions against a potential market dip. This is not uncommon for a stock that has seen its price rise by over 55% in the year leading up to June 2025.

Next step: Use the reported fiscal year 2025 net income of $252 million and the current share count to run your own simple Price-to-Earnings (P/E) comparison against peers like Accenture and DXC Technology by end of day Friday.

Institutional Ownership and Major Shareholders of Kyndryl Holdings, Inc. (KD)

If you're looking at Kyndryl Holdings, Inc. (KD), you need to know who the major shareholders are because they control the company's destiny. The direct takeaway is that institutional investors-the big money-own the vast majority of the company, meaning their sentiment drives the stock price, for better or worse. As of the most recent filings in 2025, approximately 71.53% of Kyndryl's stock is held by institutional investors.

This high level of institutional ownership is a double-edged sword: it signals credibility and professional scrutiny, but it also means the stock is highly sensitive to large-scale trading. One big fund selling can defintely move the market. The total institutional shares held stand at over 221 million.

Top Institutional Investors: Who's Holding the Keys?

The largest shareholders in Kyndryl Holdings, Inc. are the usual suspects in the world of passive and active asset management. These are the giants of the industry, managing trillions of dollars for pension funds, endowments, and mutual funds. Their positions are not just investments; they are a significant vote of confidence in the company's turnaround strategy, particularly its shift toward higher-margin services and the Kyndryl Bridge platform.

The top three institutional holders alone control a substantial portion of the company's equity. Here's a quick look at the top institutional investors and their approximate holdings based on recent 2025 data, using a share price of $24.53 as of November 21, 2025, for valuation:

The presence of Vanguard Group Inc. and BlackRock, Inc. in the top spots is typical; they are often the largest shareholders in major US companies because they manage massive index funds. This is mostly passive money, tracking the market. The real signal comes from the active managers like Neuberger Berman Group LLC, whose large stake suggests a dedicated investment thesis on Kyndryl's long-term value.

Recent Shifts: Are Institutions Buying or Selling?

The movement of institutional money in 2025 has been mixed, which is a key signal of the market's ongoing debate about Kyndryl's trajectory. While some institutions are taking profits or rebalancing, others are initiating new, large positions. This tells me the smart money isn't in full agreement yet.

Recent 13F filings show a near-even split in activity, with 290 institutions increasing their positions and 296 decreasing their positions. However, the total number of shares bought often outweighs the total sold in a net-positive accumulation period. For example, in the first half of 2025:

• Neo Ivy Capital Management acquired a new stake of 35,011 shares in Q2 2025, valued at about $1.469 million.
• Intech Investment Management LLC raised its stake by 31.6% during Q2 2025, purchasing an additional 21,082 shares.
• Voya Investment Management LLC increased its position by 56.2% in Q1 2025.

This pattern of new and significantly increased positions suggests that a segment of institutional capital is betting on the company's strategic transformation, particularly its focus on higher-margin services and its partnership ecosystem, which you can read more about in Breaking Down Kyndryl Holdings, Inc. (KD) Financial Health: Key Insights for Investors. Still, the mixed activity means you need to be cautious; the stock is not a consensus buy.

Impact on Stock Price and Strategy

Institutional investors don't just hold stock; they exert influence. Their large collective stake-up to 80% in some recent reports-means they possess the maximum upside potential and downside risk. Their trading volume can easily overwhelm retail investor activity, making the stock price highly vulnerable to their collective buying or selling decisions. One large block trade can create a significant price fluctuation.

Beyond the stock price, these investors play a crucial role in corporate strategy. They are the ones who pressure management to deliver on performance targets, especially around profitability and free cash flow (FCF). Because Kyndryl Holdings, Inc. is in a turnaround phase, institutional scrutiny is intense. They demand clear execution on the company's 'three-A' strategy: Alliances, Advanced Delivery, and Accounts. Failure to meet earnings per share (EPS) expectations-even a small miss-can trigger a sharp sell-off from multiple funds simultaneously, as they measure performance against their indices. Their influence keeps management focused on maximizing shareholder returns, which is ultimately a good thing for all investors, but it means the pressure to perform is constant.

Key Investors and Their Impact on Kyndryl Holdings, Inc. (KD)

If you're looking at Kyndryl Holdings, Inc. (KD), you need to know who is holding the massive stakes, because they are the ones who truly influence the long-term direction. The story here is a shift from a post-spin-off uncertainty to significant institutional accumulation, which signals confidence in the company's turnaround strategy.

Institutional investors own an overwhelming majority, about 71.53%, of Kyndryl Holdings, Inc. stock. This high percentage means that large fund managers, not individual retail traders, are setting the tone for the stock's stability and valuation. That's a strong technical indicator.

The largest shareholders are exactly who you'd expect to see holding a massive piece of a newly independent enterprise technology services provider (Kyndryl Holdings, Inc. was spun off from IBM in 2021). These are the giants of passive and active management, and their holdings are substantial. For instance, as of the most recent filings, Vanguard Group Inc. held the largest position, valued at approximately $846.45 million. FMR LLC and State Street Corp also rank high, holding positions valued at $429.33 million and $312.09 million, respectively. BlackRock, Inc. is another major player in this group, which is defintely a name you know.

The Activist and Influential Investor Angle

While Kyndryl Holdings, Inc. hasn't seen a high-profile activist battle, the presence of influential hedge funds like Greenlight Capital is noteworthy. Greenlight Capital mentioned the company in its third-quarter 2025 investor letter, which brings a level of scrutiny and validation to the stock, even if they noted a recent pullback. These funds don't just buy and hold; they often engage with management on capital allocation, operational efficiency, and strategic direction. Their investment signals they see a clear path to 'monetizing' the turnaround.

The core of the investment thesis for these big players is the company's success in moving past inherited low-margin contracts and growing its higher-value consulting and hyperscaler (cloud provider) services. Kyndryl Holdings, Inc.'s own numbers for the fiscal year ended March 31, 2025, support this shift:

• Full-year 2025 Revenues: $15.1 billion.
• Net Income: $252 million, a huge swing from a loss in the prior year.
• Adjusted EBITDA: Reached $2.5 billion.
• Record Signings: $18.2 billion, representing a 46% year-over-year increase.

Here's the quick math: The record signings number, $18.2 billion, is the forward-looking metric that institutional investors are focused on, as it promises future revenue growth and margin expansion. That's the real driver.

Recent Moves and Investor Sentiment

Looking at the most recent institutional activity, the trend is clearly one of accumulation, which is a strong vote of confidence in the management's strategic plan. The third quarter of 2025 saw some significant buying activity:

• Vanguard Group Inc. increased its stake by 6.1%, adding over 1.6 million shares.
• AQR Capital Management LLC dramatically boosted its position by 386.2%, acquiring over 3.3 million additional shares.
• Dimensional Fund Advisors LP also increased its position by 4.1%.

This accumulation suggests that major funds see the stock as undervalued relative to its improving profitability and strong cash flow from operations, which was $942 million in fiscal year 2025. Furthermore, the company itself is actively supporting its stock price through a share repurchase program, having bought back 1.8 million shares for $64 million in the fourth quarter of fiscal year 2025 under a larger $300 million authorization. This is a direct way to return capital to shareholders and signals management believes its stock is a good investment.

The impact of this institutional buying is that it provides a solid floor for the stock price and validates the strategy of focusing on high-growth areas like Kyndryl Consult, which saw a 26% revenue increase in fiscal 2025. If you want to dive deeper into the company's foundation, you can check out the Kyndryl Holdings, Inc. (KD): History, Ownership, Mission, How It Works & Makes Money chapter. The message from the market's biggest players is clear: the turnaround is real, and the stock is still in an accumulation phase.

Market Impact and Investor Sentiment

You're looking at Kyndryl Holdings, Inc. (KD) and seeing a stock with a split personality: strong financial execution but a volatile market price. The direct takeaway is that institutional investors, who hold about 71.5% of the stock, maintain a cautiously positive sentiment, driving a consensus of Kyndryl Holdings, Inc. (KD): History, Ownership, Mission, How It Works & Makes Money.

The core belief among major shareholders is in the company's strategic pivot away from low-margin legacy contracts toward higher-value services. This is not a growth story yet, but a significant margin expansion story. For the fiscal year 2025, Kyndryl Holdings, Inc. reported $482 million in adjusted pretax income, a massive 192% increase from the prior year, proving their strategy is working.

Who's Buying: The Institutional Confidence

When you see major asset managers increasing their positions, it signals long-term conviction, not just a quick trade. The three largest institutional shareholders-Vanguard Group Inc., FMR LLC, and BlackRock, Inc.-collectively own a substantial portion of the company. These are not activist investors looking for a boardroom fight; they are index and large-scale fund managers betting on the long-term turnaround.

For example, as of September 29, 2025, Vanguard Group Inc. held 28,186,677 shares, representing a 12.33% stake. BlackRock, Inc. held 22,505,929 shares, or 9.85% of the company. Dimensional Fund Advisors LP also boosted its position by 4.1% in the third quarter. This is defintely a vote of confidence in the management's ability to execute on its 'three-A initiatives' (Alliances, Advanced Delivery, and Accounts).

Here's the quick math on the top institutional holders as of late Q3 2025:

Market Jitters and The Revenue Miss

Still, the stock price has been a rollercoaster, which is why you see mixed signals. The market is hyper-focused on the top-line, or revenue, which Kyndryl Holdings, Inc. has struggled to grow consistently. For example, in early November 2025, the stock fell 7.5% after the company reported mixed quarterly results. They beat the earnings per share (EPS) estimate with $0.38 but missed the revenue forecast of $3.84 billion, reporting only $3.72 billion.

This market reaction, where an EPS beat is overshadowed by a revenue miss, tells you that investors are worried about the pace of replacing the old, low-margin revenue with new, high-margin revenue. The stock plunged 39% in the second half of 2025, mostly due to these revenue concerns. Plus, the unusually large volume of put options purchased in November 2025 suggests that some traders are actively hedging or betting on further downside, despite the underlying margin improvements.

Analyst Perspectives: A Bullish Long-Term View with Near-Term Caution

The analyst community maps this risk-reward profile clearly. The consensus rating is a 'Moderate Buy,' with an average 12-month price target of $40.00. This implies a significant upside from the stock's recent trading range near its 52-week low of $23.28.

The bullish case hinges on the consulting business, Kyndryl Consult, which saw revenue grow by 26% in fiscal 2025, and record signings of $18.2 billion for the full year. That's a 46% jump in new business.

• JPMorgan Chase & Co. set an 'overweight' rating with a $40.00 price target, focusing on margin expansion.
• Morgan Stanley initiated coverage with a more cautious 'equal weight' rating and a $30.00 target, citing concerns about reliance on cost-cutting.
• Zacks Research upgraded the stock from a 'strong sell' to a 'hold' in November 2025, recognizing the improved earnings outlook.

What this estimate hides, though, is the time it takes for new, high-margin contracts to fully replace the older, lower-margin contracts that are rolling off. The risk is a continued near-term revenue decline while the business mix shifts. Your action here is to track the Kyndryl Consult revenue and the total contract signings, not just the quarterly top-line number, as those are the leading indicators of future profitability.