Kyndryl Holdings Inc delivered a challenging Q1 2025 with reported revenue of $3.739 billion, marking an 8% decline year-over-year primarily due to a strategic exit from low-margin contracts. However, the company showcased resilience with a notable increase in adjusted pretax income, which grew 96% to $92 million, driven by improved operational efficiency and a focus on high-margin Kyndryl Consult services. The management expressed optimism regarding future growth, indicating that 50% of revenues are now from post-spin signings, expected to enhance margins going forward. Through significant advancements with Kyndryl Bridge and strategic partnerships, particularly with hyperscalers and the introduction of generative AI solutions, Kyndryl is poised to turn around revenues by Q4 2025 and achieve an adjusted EBITDA margin of at least 16.3% for the year.