Kyndryl Partners with Hertz on Technology Transformation

Kyndryl (NYSE: KD) announced a five-year extension of its agreement with Hertz (NASDAQ: HTZ) to continue technology transformation work, dated January 23, 2026.

Rhea-AI Summary

Kyndryl (NYSE: KD) announced a five-year extension of its agreement with Hertz (NASDAQ: HTZ) to continue technology transformation work, dated January 23, 2026.

The engagement will extend Kyndryl Consult services and deploy Kyndryl's Agentic AI Framework to advance Hertz's technology ecosystem. Key activities described include migrating mainframe systems to cloud-based architectures, consolidating IT platforms for a more integrated environment, and integrating AI-driven automation to optimize operational workflows and system reliability.

Company statements emphasize goals to accelerate decision-making, improve reliability, and deliver a faster, more seamless rental experience for Hertz customers over the contract term.

Positive

• Signed five-year extension with Hertz through 2031
• Planned migration of Hertz mainframes to cloud architectures
• Deployment of Agentic AI Framework to automate workflows
• IT platform consolidation to create an integrated technology estate

Negative

• None.

Argus Jan 23 session

-2.65% close to close Open Argus

Details

News Market Reaction – KD

On Jan 23, the day this news came out, KD closed 2.65% below the previous close.

Data tracked by StockTitan Argus for the Jan 23 session.

Key Figures

Quarterly revenue: $3,721M Net income: $68M Diluted EPS: $0.29 +5 more

Quarterly revenue

$3,721M

Quarter ended Sep 30, 2025

Net income

$68M

Quarter ended Sep 30, 2025 (vs prior-year loss)

Diluted EPS

$0.29

Quarter ended Sep 30, 2025

Segment adjusted EBITDA

$669M

Quarter ended Sep 30, 2025

Cash & cash equivalents

$1,331M

As of Sep 30, 2025

Long-term debt

$3,004M

As of Sep 30, 2025

Remaining performance obligations

$34.0B

Future contracted revenue; 10-Q dated Nov 5, 2025

RPO next two years

57%

Portion of RPO expected as revenue within two years

Previous Partnership Reports

5 past events · Latest: Nov 20

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1. Nov 20

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2. Sep 12

   CX partnership launch

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   Global VML partnership to combine AI platforms and transform customer experience.

3. Aug 05

   SAP AI collaboration

   24h Move

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   Nova Intelligence collaboration to accelerate SAP cloud ERP transformations using AI agents.

4. Jul 10

   Microsoft AI hub launch

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   Microsoft Acceleration Hub debut to drive Azure-based AI and digital transformation.

5. Jun 17

   Cyber recovery partnership

   24h Move

   +0.1%

   Commvault partnership to deliver incident recovery and cyber resilience services globally.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

agentic ai framework, mainframe systems, cloud-based architectures, ai-driven automation

4 terms

agentic ai framework technical

"leveraging its Agentic AI Framework and Kyndryl Consult services."

A agentic AI framework is a set of design rules, software components and interfaces that let an artificial intelligence behave like an autonomous agent—setting goals, making plans and carrying out tasks with limited human direction. Think of it as a recipe and toolkit that turns a passive tool into an independent assistant that can act in the world. For investors, it matters because such frameworks can enable new automation-driven products and cost savings but also introduce operational, safety and regulatory risks that affect a company’s competitiveness and valuation.

mainframe systems technical

"Key components include migrating mainframe systems to cloud-based architectures,"

Mainframe systems are large, highly reliable computers that run an organization’s most critical operations—think of them as the secure, heavy-duty vault and foundation that process huge numbers of transactions, payrolls, and databases all at once. Investors care because these systems underpin revenue and customer trust; decisions to maintain, upgrade, or replace them affect costs, operational risk, service continuity, and future competitiveness much like renovating a building’s foundation impacts all tenants.

cloud-based architectures technical

"migrating mainframe systems to cloud-based architectures, consolidating IT platforms"

Cloud-based architectures are ways companies design their computing systems so data and applications run on remote servers accessed over the internet instead of on local machines. Like renting flexible storage and tools that scale up or down as needed, this approach can lower upfront costs, speed product updates, and improve resilience; for investors, it affects a company's capital spending, growth potential, and operational risk profile.

ai-driven automation technical

"integrate AI-driven automation capabilities to optimize operational workflows."

AI-driven automation uses computer programs that learn patterns from data to perform routine business tasks without constant human direction, such as sorting documents, predicting demand, or controlling machines. Investors care because it can lower operating costs, speed up work, and reduce errors—like replacing a slow, repetitive assembly line with a smart one that adjusts itself—potentially boosting profits and competitive advantage, though it also involves upfront investment and implementation risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Jan. 23, 2026 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced a five-year extension to its agreement with The Hertz Corporation (NASDAQ: HTZ), one of the world's leading car rental and mobility solutions providers. Under the extension, Kyndryl will continue working with Hertz to advance Hertz's technology ecosystem by leveraging its Agentic AI Framework and Kyndryl Consult services.

"As we continue to transform every part of our business, advancing our systems and streamlining critical processes with Kyndryl will allow us to operate with greater speed and efficiency which will ultimately deliver an even better experience for our customers," said Chris Berg, Chief Administrative Officer at Hertz.

"Kyndryl is proud to partner with Hertz, leveraging our Agentic AI Framework to modernize its core technology and operations," said Shawn D'Souza, SVP, Global Modernization, Kyndryl. "Our partnership is helping Hertz accelerate decision-making, improve reliability and deliver a faster, more seamless rental experience for customers."

Kyndryl's transformation services are designed to advance and improve Hertz's system reliability and support Hertz's operational requirements as the company continues to evolve its technology estate. Key components include migrating mainframe systems to cloud-based architectures, consolidating IT platforms to create a more integrated technology environment, and leveraging Kyndryl's Agentic AI Framework to integrate AI-driven automation capabilities to optimize operational workflows.

About Kyndryl 
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com. 

Kyndryl press contact  
press@kyndryl.com 

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SOURCE Kyndryl

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Kyndryl (KD) announce on January 23, 2026 about Hertz?

Kyndryl announced a five-year extension of its agreement to continue transforming Hertz's technology ecosystem.

How will Kyndryl's Agentic AI Framework be used by Hertz under the KD agreement?

The framework will be used to integrate AI-driven automation to optimize operational workflows and accelerate decision-making.

Does the KD–Hertz extension include mainframe migration and platform consolidation?

Yes. The agreement cites migrating mainframe systems to cloud-based architectures and consolidating IT platforms for a more integrated environment.

What operational benefits did Kyndryl say the Hertz partnership aims to deliver?

Kyndryl said the work aims to improve system reliability, speed decision-making, and deliver a faster, more seamless rental experience for customers.

How long is the Kyndryl (KD) engagement with Hertz (HTZ)?

The engagement is a five-year extension beginning with the January 23, 2026 announcement.