KD
Kyndryl Holdings, Inc.26.51
-0.04-0.15%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q3 '26
Details sales slips, cost actions reaffirm long-term
Q&A unpacked the FY2026 outlook trim, attributing ~6 points of shortfall to softer Consult/hyperscaler acceleration and pipeline conversion amid AI-driven sales cycle extensions and data sovereignty snags, atop IBM headwinds. Core revenue grew flat ex-IBM drag. Management flagged lower attrition and costly local hiring in UK/strategic markets but promised quick fixes via automation and reskilling. Sales cycles stretched a couple quarters only. SEC probe won't touch guidance or FY2028 targets. Confident tone persists; watch cost alignment and deal timing.
Key Stats
Market Cap
6.13BP/E (TTM)
15.50Basic EPS (TTM)
1.71Dividend Yield
0%Recent Filings
10-Q
Q3 FY2026 results
Kyndryl posted Q3 revenue of $3.9B, up 3% y/y but flat q/q (derived), with gross margins edging to 21.9% from 20.4% y/y as cost efficiencies offset higher labor costs. Net income fell to $57M from $215M y/y, hit by $38M transaction costs versus a $148M prior-year gain from the SIS sale, while diluted EPS dropped to $0.25 from $0.89 on 232.5M shares—anti-dilution from 4.9M RSUs flagged. Operating cash flow hit $450M YTD, yielding $ -42M free cash flow after $492M capex (derived), cash at $1.3B with $3.1B debt and full revolver access despite covenants. Share repurchases totaled $250M YTD. Ongoing SEC probe clouds disclosure controls.
8-K
Interim exec appointments
Kyndryl appointed Harsh Chugh as Interim CFO, Bhavna Doegar as Interim Corporate Controller, and Mark Ringes as Interim General Counsel on February 5, 2026, effective immediately. This followed the immediate departure of CFO David Wyshner and General Counsel Edward Sebold, with Global Controller Vineet Khurana shifting roles. Leadership shakeup signals transition. No compensation changes disclosed yet.
8-K
Q3 revenues $3.9B, leadership shifts
Kyndryl posted Q3 fiscal 2026 revenues of $3.9B, up 3% reported, with adjusted pretax income rising to $168M but GAAP pretax income dropping to $91M due to a $38M transaction loss. Kyndryl Consult surged 24% while hyperscaler alliances hit $500M, up 58%; leadership tapped interim CFO, GC, and controller. Signings hit high-single-digit margins. FY26 outlook: adjusted pretax income $575-600M. 10-Q filing delayed.
8-K
CHRO Charbonnier retiring March 31
Kyndryl's Chief Human Resources Officer Maryjo Charbonnier notified her retirement effective March 31, 2026, after over four years leading HR since the company's public launch and nearly 20 years as a public-company CHRO. She'll transition to Executive Advisor until August 31. Smooth handover planned.
10-Q
Q2 FY2026 results
Kyndryl swung to $68M net income in Q2 FY2026 ended September 30, 2025, from a $43M loss y/y, as revenues dipped 1% to $3,721M while cost of services fell 3% to lift gross margins; operating income hit $98M pre-tax versus a $5M loss. All segments posted double-digit adjusted EBITDA gains y/y, fueled by efficiency drives and shedding low-margin contracts—US up 22%, Japan 30%. Cash fell to $1,331M after $243M share repurchases, with $3.1B debt steady and full revolver access; op cash of $22M less capex yielded negative FCF. Competition shadows demand for IT infrastructure services.
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