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
In the second quarter of 2025, Kyndryl Holdings Inc (KD) reported a total revenue of $3.774 billion, reflecting a 7% year-over-year decline in constant currency, primarily due to an intentional shift away from lower-margin customers. However, the company experienced a record quarter for signings with a remarkable 132% growth compared to the prior year, leading to an annualized total of $16 billion in signings. The strategic emphasis on high-margin advisory services, demonstrated by a significant increase in Kyndryl Consult revenues, which grew 23% YoY, showcases the company’s resilience amidst a challenging revenue environment. Management remains optimistic about returning to revenue growth in the upcoming quarters, driven by strong growth in consult services and notable advancements in AI integration.
Key Performance Indicators
Revenue
3.77B
QoQ: 0.94% | YoY:-7.34%
Gross Profit
750.00M
19.87% margin
QoQ: -6.83% | YoY:15.21%
Operating Income
61.00M
QoQ: -58.78% | YoY:377.27%
Net Income
-43.00M
QoQ: -490.91% | YoY:69.72%
EPS
-0.19
QoQ: -480.00% | YoY:69.35%
Revenue Trend
Margin Analysis
Key Insights
- "We delivered another strong quarter for signings, margins and cash flow generation, with total signings growing 132% year-over-year."
- "The projected pretax margins on our signings continue to be in the high single digits."