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Kyndryl CEO says AI growth limited by old infrastructure, but hyperscaler revenue surges 58% in Q3 FY2026

Market News
03 Apr 2026
24/7 Wall Street
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Neutral
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Kyndryl CEO Martin Schroeter highlights that enterprise AI's potential is constrained by outdated infrastructure, likening it to a fast bullet train running on slow tracks. Despite 95% of enterprises adopting AI, many lack proper governance frameworks, limiting scalability. Kyndryl addresses this with a new service to modernize infrastructure, supporting nearly 200 million automations monthly. The company’s hyperscaler-related revenue rose 58% year-over-year in Q3 FY2026, aiming to surpass its $1.8 billion target. However, the stock has fallen 50% this year amid leadership and legal challenges, with investor confidence hinging on management’s ability to rebuild trust while growing AI-driven revenue.

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