• Reported GAAP EPS of $0.25 down -73.12% YoY • Reported revenue of $3.86B up 3.07% YoY • Kyndryl expects fiscal 2026 adjusted pretax income of $575M, adjusted EBITDA margin of approximately 17.5%, and free cash flow of $325M, while constant-currency revenue is projected to decline 2% to 3%.
Bullish
Kyndryl achieved 24% growth in Consult revenue and 58% growth in hyperscaler alliances revenue, driving an $8M increase in adjusted pretax income to $168M.
Bearish
Kyndryl saw net income decline to $57M, faces new EU regulatory scrutiny as a critical provider, and projects a constant-currency revenue decline of 2% to 3% for fiscal 2026.