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 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.
Key Performance Indicators
Revenue
3.74B
QoQ: -2.88% | YoY:-10.83%
Gross Profit
805.00M
21.53% margin
QoQ: 12.43% | YoY:8.20%
Operating Income
148.00M
QoQ: 7 300.00% | YoY:516.67%
Net Income
11.00M
QoQ: 124.44% | YoY:107.80%
EPS
0.05
QoQ: 125.00% | YoY:108.06%
Revenue Trend
Margin Analysis
Key Insights
- Revenue: $3.739 billion (YoY: -8%)
- Gross Profit: $805 million (YoY: +8.2%)
- Operating Income: $148 million (YoY: +516.67%)
- Net Income: $11 million (YoY: +107.80%)
- Adjusted EBITDA: $556 million, up YoY +30 basis points to 14.9%