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 robust financial results for the third quarter of fiscal year 2025, with revenues of $3.74 billion. While there was a marginal decline in constant currency (3% YoY), Kyndryl is positioned for future growth following strategic moves to enhance high-margin advisory services and expand their customer base in the growing AI and cloud services markets. Management highlighted that signings have increased 31% year-over-year, demonstrating sustained demand across its service lines, especially within Kyndryl Consult, which saw a 26% growth. The quarter underscored strong execution and management's optimistic outlook for continued profitability and cash flow generation as the company recalibrates its strategies to enhance value delivery to clients.
Key Performance Indicators
Revenue
3.74B
QoQ: -0.79% | YoY:-4.88%
Gross Profit
763.00M
20.38% margin
QoQ: 1.73% | YoY:1.46%
Operating Income
116.00M
QoQ: 90.16% | YoY:146.81%
Net Income
215.00M
QoQ: 600.00% | YoY:1 891.67%
EPS
0.93
QoQ: 589.47% | YoY:1 878.20%
Revenue Trend
Margin Analysis
Key Insights
- **Revenue:** $3.74 billion (YoY decline: 4.88%, QoQ decline: 0.79%)
- **Gross Profit:** $763 million (YoY increase: 1.46%, QoQ increase: 1.73%)
- **Operating Income:** $116 million (YoY increase: 146.81%)
- **Net Income:** $215 million (YoY increase: 1,891.67%)
- **Earnings per Share (EPS):** $0.93 (YoY increase: 1,878.2%)