10-Q · February 17, 2026
Kyndryl Holdings reported a revenue of $3.86 billion for Q3 2026, representing a 3% increase versus the prior year, although it missed analyst expectations with a diluted EPS of $0.52 compared to the estimated $0.56.…
Earnings analysis · 10-K
KD earnings analysis
Filed May 29, 2026 · Our reading of the company's report
The latest report
Kyndryl's 2026 Annual Report shows flat revenue of $15.1 billion, driven primarily by a decline in the U.S. segment, offset by growth in Kyndryl Consult and hyperscaler-related revenues. The company faces challenges…
Read full summary
Kyndryl's 2026 Annual Report shows flat revenue of $15.1 billion, driven primarily by a decline in the U.S. segment, offset by growth in Kyndryl Consult and hyperscaler-related revenues. The company faces challenges with longer sales cycles and issues related to its historical ties with IBM. Management expects to incur significant costs from workforce rebalancing initiatives aimed at operational efficiency, with anticipated savings materializing in the coming fiscal years.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.87
- Segment
- United States
- Segment
- Japan
- Segment
- Principal Markets
- Segment
- Strategic Markets
What stood out
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Flat Revenue in Fiscal 2026
Kyndryl reported revenues of $15.1 billion for the fiscal year ended March 31, 2026, unchanged from the previous fiscal year.
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Free Cash Flow Recovery
The free cash flow increased to $948 million in FY2026, up from $942 million in FY2025, driven by improved collections.
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Successful Cost Management
Operating expenses decreased to 78.2% of revenue in FY2026 from 79.1% in FY2025, indicating effective cost measures.
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Share Repurchase Program Expansion
The company executed a share repurchase of 11.6 million shares for $304 million in FY2026, showing commitment to enhancing shareholder value.
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Ongoing Workforce Restructuring
Kyndryl anticipates $200 million in workforce rebalancing charges in FY2027 with expected savings of $400 to $500 million in FY2028.
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Improved Operating Margins
Kyndryl's adjusted EBITDA for FY2026 was $2.7 billion, an increase from $2.6 billion in FY2025.
What to watch
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Material Weaknesses in Internal Controls
Kyndryl identified significant material weaknesses in internal controls, impacting reliability, which could expose the company to financial inaccuracies.
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Increased Competition and Pricing Pressure
Intensified competition may pressure profit margins, potentially affecting revenue. The report indicates ongoing pressures in the U.S. and other key markets.
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Dependence on Major Clients
Although no single client represented over 10% of revenue, reliance on a concentrated client base poses risks if major clients reduce spending.
Management's outlook
Kyndryl expects to incur $200 million in workforce rebalancing charges for FY2027, aiming for $400 million in savings by FY2028.
Earlier filings 4
10-Q · November 5, 2025
Kyndryl Holdings, Inc. reported revenue of $3.72 billion for the three months ended September 30, 2025, a slight decline of 1% year-over-year, while net income increased to $68 million, signifying a turnaround in…
10-Q · August 5, 2025
Kyndryl Holdings, Inc. (KD) reported a slight increase in revenue to $3.74 billion for the quarter ended June 30, 2025, up 0.1% from the prior year despite a 3% decline in constant currency. The net income rose…
10-K · May 30, 2025
Kyndryl Holdings, Inc. reported a 6% decline in revenues to $15.06 billion in FY 2025, driven by restructuring actions targeting lower-margin contracts. Net income improved to $252 million, marking a recovery from the…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.