Kyndryl stock reports higher adjusted profit as revenue slips
Published on 11/05/2026 at 02:13 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSProfitability improves despite revenue decline
- Kyndryl reported higher adjusted EBITDA and adjusted pretax income for fiscal second quarter 2027.
- Hyperscaler-related revenue and Kyndryl Consult revenue both grew year over year.
- Management reaffirmed its fiscal 2027 outlook for revenue, adjusted pretax income and free cash flow.
Kyndryl reported fiscal second-quarter results on Wednesday, November 4, 2026, showing higher adjusted profitability alongside a decline in reported revenue. The company said revenue for the quarter ended September 30 fell 1.9 percent year over year to USD 3.651 billion, while constant-currency revenue declined 0.8 percent, according to the Kyndryl investor release.
Adjusted EBITDA rose to USD 699 million from USD 641 million a year earlier, lifting the adjusted EBITDA margin to 19.1 percent from 17.2 percent. Adjusted pretax income increased to USD 150 million from USD 123 million, while adjusted net income reached USD 92 million, or USD 0.42 per diluted share, compared with USD 89 million, or USD 0.38, in the prior-year quarter.
Growth areas offset broader pressure
Kyndryl Consult revenue grew 4.2 percent year over year, and hyperscaler-related revenue increased 27.2 percent to more than USD 550 million. Quarterly signings reached USD 4.1 billion, compared with USD 2.8 billion a year earlier, although the company cautioned that signings do not represent a comprehensive measure of future revenue.
Reported net income fell to USD 59 million from USD 68 million, or USD 0.27 per diluted share versus USD 0.29. Workforce-rebalancing charges rose to USD 38 million from USD 19 million, while operating cash flow increased to USD 172 million. Free cash flow was a use of USD 34 million, compared with a source of USD 22 million in the prior-year quarter.
Guidance remains unchanged
Management reaffirmed fiscal 2027 guidance for adjusted pretax income of USD 600 million to USD 700 million, free cash flow of USD 400 million to USD 500 million and constant-currency revenue ranging from flat to down 2 percent. Kyndryl expects approximately USD 200 million of workforce-rebalancing charges during the fiscal year, with savings expected to begin in the second half.
Kyndryl stock traded at EUR 15.12 on Lang & Schwarz at 11:01 p.m. CET on Wednesday, November 4, 2026. Investors can follow the real-time quote of Kyndryl stock.
Kyndryl serves global enterprise systems
Kyndryl provides advisory, implementation and managed services for mission-critical enterprise technology systems. The company designs, builds, manages and modernizes information systems for customers in more than 60 countries, with capabilities spanning cloud, cybersecurity, artificial intelligence and modernization. Its Kyndryl Consult business and global alliance network support work with large enterprise customers across multiple regions.
Kyndryl stock facts
- Company: Kyndryl Holdings, Inc.
- ISIN: US50155Q1004
- Ticker: KD
- Home exchange: New York Stock Exchange
- Lang & Schwarz price: EUR 15.12 on November 4, 2026 at 23:01 CET
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