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03Detailed Report
KD
Kyndryl Holdings Inc
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 12, 2026
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Executive Summary
Kyndryl Holdings Inc. reported its Q1 2026 results with a revenue of $3.743 billion, reflecting a year-over-year increase of 11% on a reported basis, driven primarily by strong growth in Kyndryl Consult, which saw a 30% increase year-over-year. Despite a decline in constant currency revenues due to strategic focus on essential accounts, management emphasized the substantial margin improvements and a 39% increase in adjusted pretax income, which illustrated the effectiveness of their operational strategies. The company reaffirmed its fiscal 2026 guidance of a 1% revenue growth, with expectations for accelerating growth in the latter part of the year as it shifts towards higher-margin post-spin contracts.
Key Performance Indicators
Revenue
Increasing
3.74B
QoQ: -1.50% | YoY: 0.11%
Gross Profit
Decreasing
796.00M
21.27% margin
QoQ: N/A | YoY: -1.12%
Operating Income
Increasing
150.00M
QoQ: -7.41% | YoY: 1.35%
Net Income
Increasing
56.00M
QoQ: -17.65% | YoY: 409.09%
EPS
Increasing
0.24
QoQ: -20.00% | YoY: 380.00%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: Kyndryl reported Q1 2026 revenues of $3.743 billion, a 2.6% decline in constant currency compared to Q4 2025, due to strategic focus on high-margin accounts, transitioning several low-margin accounts.
Profitability Metrics: The company's operating income stood at $150 million, with a margin of 4.0%, while net income surged significantly by 409% to $56 million amidst the focus on margin-expansion strategies.
Cash Flow and Balance Sheet: Despite a seasonal cash outflow of $222 million, Kyndryl maintains a robust cash balance of $1.5 billion. The company forecasts a positive cash flow of approximately $550 million for the fiscal year, with manageable net leverage at 0.6x adjusted EBITDA.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.74B
0.11%
-1.50%
Gross Profit
796.00M
-1.12%
N/A
Operating Income
150.00M
1.35%
-7.41%
Net Income
56.00M
409.09%
-17.65%
EPS
0.24
380.00%
-20.00%
Key Financial Ratios
Management Insights Available for Members
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