Quarterly ResultMay 6, 2026, 07:12 AM
Kyndryl Q4 Revenue $3.8B, FY26 Revenue $15.1B; Announces Restructuring
AI Summary
Kyndryl Holdings, Inc. reported mixed financial results for its fourth quarter and full fiscal year 2026, with full-year revenues flat at $15.1 billion and net income of $198 million. The company announced workforce rebalancing actions expected to incur $200 million in charges in Q1 FY27 but yield $400-500 million in annualized operating expense savings by FY28. Kyndryl also provided a fiscal year 2027 outlook, projecting adjusted pretax income of $600-700 million and free cash flow of $400-500 million, alongside continued growth in hyperscaler-related and Kyndryl Consult revenues.
Key Highlights
- Workforce rebalancing approved, incurring estimated $200M charges in Q1 FY27, targeting $400-500M annualized savings by FY28.
- Fiscal Year 2026 revenues were $15.1 billion (flat YoY); net income was $198 million, or $0.85 per diluted share.
- Fiscal Year 2026 adjusted EBITDA increased 6% YoY to $2.7 billion; adjusted pretax income rose 21% YoY to $581 million.
- Fourth Quarter 2026 revenues were $3.8 billion (-1% YoY); net income was $17 million, or $0.08 per diluted share.
- Fiscal Year 2026 Hyperscaler-related revenue grew 59% YoY to $1.9 billion, exceeding target.
- Fiscal Year 2026 Kyndryl Consult revenues increased 18% YoY to $3.5 billion, with signings of $4 billion.
- The company repurchased 11.6 million shares for $304 million in fiscal year 2026.
- Fiscal Year 2027 outlook projects adjusted pretax income of $600-700 million and free cash flow of $400-500 million.