Kyndryl (NYSE:KD) Releases Quarterly Earnings Results, Misses Estimates By $0.25 EPS

Kyndryl (NYSE:KD) posted its earnings results on Wednesday. The company reported $0.18 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.25), FiscalAI reports. The business had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.75 billion. Kyndryl had a return on equity of 25.91% and a net margin of 1.65%.Kyndryl’s revenue for the quarter was down .8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.52 EPS.

Here are the key takeaways from Kyndryl’s conference call:

• Kyndryl reported fiscal 2026 adjusted pre-tax income of $581 million, adjusted EBITDA of $2.7 billion, and generated $406 million in free cash flow, and it guides fiscal 2027 adjusted pre-tax income of $600–700 million while targeting >$1.2 billion adjusted pre-tax income and >$1 billion free cash flow for fiscal 2028.
• Growth is being driven by higher‑value services — Kyndryl Consult delivered its third consecutive year of double‑digit revenue growth and hyperscaler‑related revenue rose ~59% to nearly $2 billion, with Consult signings exceeding revenue entering fiscal 2027.
• Revenue headwinds persist — fiscal 2026 revenue was flat at $15.1 billion (down 3% cc) and management expects fiscal 2027 revenue to be flat to down ~2% cc, citing elongated sales cycles (especially in the U.K./Europe) and a multi‑point adverse impact from customers procuring IBM innovation directly.
• Operational efficiency and AI adoption are material levers — Advanced Delivery and Kyndryl Bridge AI agents are driving faster incident resolution and root‑cause analysis, the Accounts/alliances work yielded ~$1 billion of savings/profit improvement, and planned workforce rebalancing will incur ~$200 million charges in FY27 to achieve ~$400–500 million annualized savings in FY28.

Kyndryl Price Performance

Shares of NYSE:KD traded down $1.60 during trading on Wednesday, reaching $13.11. The company had a trading volume of 11,598,758 shares, compared to its average volume of 4,905,385. The company has a fifty day moving average of $13.02 and a two-hundred day moving average of $20.53. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 1.75. The stock has a market capitalization of $2.95 billion, a P/E ratio of 12.48 and a beta of 1.72. Kyndryl has a 12 month low of $10.10 and a 12 month high of $44.20.

Institutional Trading of Kyndryl

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Invesco Ltd. raised its position in shares of Kyndryl by 26.6% during the 4th quarter. Invesco Ltd. now owns 2,213,986 shares of the company’s stock valued at $58,803,000 after buying an additional 465,539 shares in the last quarter. Corient Private Wealth LLC raised its position in shares of Kyndryl by 6.1% during the 4th quarter. Corient Private Wealth LLC now owns 53,014 shares of the company’s stock valued at $1,378,000 after buying an additional 3,047 shares in the last quarter. Empowered Funds LLC raised its position in shares of Kyndryl by 4.9% during the 4th quarter. Empowered Funds LLC now owns 67,083 shares of the company’s stock valued at $1,782,000 after buying an additional 3,118 shares in the last quarter. XTX Topco Ltd raised its position in shares of Kyndryl by 216.9% during the 4th quarter. XTX Topco Ltd now owns 126,019 shares of the company’s stock valued at $3,347,000 after buying an additional 86,255 shares in the last quarter. Finally, one8zero8 LLC raised its position in shares of Kyndryl by 5.8% during the 4th quarter. one8zero8 LLC now owns 17,682 shares of the company’s stock valued at $470,000 after buying an additional 970 shares in the last quarter. Hedge funds and other institutional investors own 71.53% of the company’s stock.

Wall Street Analyst Weigh In

KD has been the subject of a number of analyst reports. Wall Street Zen upgraded shares of Kyndryl from a “hold” rating to a “buy” rating in a research report on Sunday, February 22nd. Susquehanna cut their price objective on shares of Kyndryl from $35.00 to $16.00 and set a “positive” rating for the company in a research report on Friday, February 13th. JPMorgan Chase & Co. lowered shares of Kyndryl from an “overweight” rating to an “underweight” rating and set a $16.00 price objective for the company. in a research report on Monday, February 9th. Morgan Stanley cut their price objective on shares of Kyndryl from $28.00 to $13.00 and set an “equal weight” rating for the company in a research report on Tuesday, March 24th. Finally, Oppenheimer restated a “market perform” rating on shares of Kyndryl in a research report on Monday, February 9th. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus price target of $22.79.

Kyndryl Company Profile

Kyndryl (NYSE: KD) is a global managed infrastructure services provider formed in November 2021 through the spin-off of IBM’s Managed Infrastructure Services business. The company designs, builds, manages and modernizes critical information technology systems for enterprises worldwide. Kyndryl’s core offerings include cloud migration and management, network and edge computing solutions, digital workplace services and IT resiliency and security capabilities.

With a workforce of approximately 90,000 professionals and operations in more than 60 countries, Kyndryl serves clients across a broad range of industries, including financial services, telecommunications, healthcare, manufacturing and retail.