Quarterly ResultAug 5, 2026, 07:27 AM
Kyndryl Q1 Revenue $3.6B, Net Loss $55M; Reaffirms FY27 Outlook
AI Summary
Kyndryl Holdings, Inc. reported its first fiscal quarter 2027 results, with revenues declining 3% year-over-year to $3.6 billion and a net loss of $55 million. Adjusted EBITDA also decreased to $512 million. The company incurred $152 million in workforce rebalancing charges during the quarter, which contributed to the losses and cash usage. Despite the declines, Kyndryl highlighted strong signings momentum, growth in Kyndryl Consult and hyperscaler-related revenues, and reaffirmed its full fiscal year 2027 outlook for adjusted pretax income and free cash flow.
Key Highlights
- Q1 fiscal 2027 revenues totaled $3.6 billion, down 3% year-over-year on a reported and constant currency basis.
- The company reported a net loss of $55 million, or ($0.25) per diluted share, compared to net income of $56 million in prior year.
- Adjusted EBITDA was $512 million, down from $647 million in the prior-year period.
- Cash used from operations was $310 million, and free cash flow was a use of $401 million.
- Kyndryl incurred $152 million in workforce rebalancing charges, expecting $400-$500 million in annualized savings by FY28.
- The company repurchased 5.0 million shares for $64 million in Q1, totaling $462 million since November 2024.
- Kyndryl Consult revenue grew 10% year-over-year in Q1, and hyperscaler-related revenue grew 34% year-over-year.
- Reaffirmed fiscal 2027 outlook for adjusted pretax income of $600-$700 million and free cash flow of $400-$500 million.
Price Impact
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