KD
Kyndryl Holdings Inc
Q1 2026 Report
Kyndryl Holdings Inc (KD) Q1 2026 Financial Results: Focus on Growth and Margin Expansion...
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Executive Summary
Kyndryl Holdings Inc (KD) reported its fourth quarter results for fiscal year 2024, revealing a revenue of $3.85 billion, down 9% in constant currency year-over-year, driven primarily by a strategic exit from low-margin business lines. Despite the revenue decline, the company's adjusted EBITDA grew by 19% to $566 million, indicating a solid operational execution driven by effective cost management and strategic shifts towards higher-margin services such as Kyndryl Consult, which achieved a 15% revenue growth. Management expressed confidence in achieving revenue growth again by Q4 FY 2025, supported by strong demand in key service sectors including AI and cloud services. The company’s disciplined operational approach and focus on long-term strategic goals are positioned to enhance profitability going forward.
Key Performance Indicators
Revenue
3.85B
QoQ: -2.18% | YoY:-8.18%
Gross Profit
716.00M
18.60% margin
QoQ: -4.79% | YoY:-3.76%
Operating Income
2.00M
QoQ: -95.74% | YoY:-90.00%
Net Income
-45.00M
QoQ: -275.00% | YoY:68.09%
EPS
-0.20
QoQ: -282.41% | YoY:67.74%
Revenue Trend
Margin Analysis
Key Insights
- **Revenue**: $3.85 billion, down 9% YoY
- **Gross Profit**: $716 million; Gross Margin: 18.5%
- **Operating Income**: $2 million; Operating Margin: 0.05%
- **Net Income**: -$45 million; Net Margin: -1.17%
- **EPS**: -$0.20