Kyndryl Holdings Incorporation (KD)
NYSE:KD
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Earnings Data
Report Date
Aug 10, 2026After Close (Confirmed)
Period Ending
2027 (Q1)Consensus EPS Forecast
<0.01Last Year’s EPS
0.37Same Quarter Last Year
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a constructive underlying progress story: strong upside in high-value areas (Kyndryl Consult, hyperscaler/alliance revenue, AI-driven productivity and margin expansion) and solid balance-sheet metrics, but offset by near-term top-line pressure from elongated sales cycles and an evolving IBM relationship that has depressed revenue growth. Management provided clear near-term guidance that includes one-time charges for workforce rebalancing and reiterated multiyear targets (FY28 adjusted PTI >$1.2B and >$1B free cash flow) driven by higher-margin signings and efficiency gains.Company Guidance
Revenue and Scale in Hyperscaler/Alliances
Hyperscaler-related revenue reached nearly $2.0B ($1.9B disclosed) in FY26, up 59% year-over-year and exceeding the company’s 50% growth expectation, reflecting significant multi-year growth from essentially zero four years ago.
Kyndryl Consult Momentum
Kyndryl Consult delivered double-digit revenue growth for the third consecutive year; Consult signings exceeded revenue in FY26, supporting another year of strong Consult growth. The company signed 38 deals >$50M (over 30% new scope/new logos) and has signed more than 125 large deals over the last 3 years.
Margin Expansion and Profitability Progress
Adjusted EBITDA was $2.7B and adjusted pretax income (adjusted PTI) was $581M in FY26. Adjusted EBITDA margin expanded by 100 basis points and adjusted pretax margin increased by 60 basis points year-over-year, driven by a mix shift toward higher-margin post-spin signings.
Cash Generation and Strong Balance Sheet
Free cash flow was $406M for FY26 (about $50M above midpoint guidance). Cash balance was $2.6B at March 31 (up $1.3B vs. Dec 31). Over the last 2 fiscal years the company generated over $800M in free cash flow and converted >$1B adjusted PTI to cash with lower cash taxes (~$300M). Net leverage improved to 0.5x adjusted EBITDA from 0.7x.
Operational Savings and Productivity Gains from AI/Advanced Delivery
Advanced delivery and Kyndryl Bridge-driven efficiencies are delivering roughly $1.0B of cumulative annual savings; focus accounts actions yielded $1.0B of cumulative annualized profit savings. Internally, AI agents are resolving incidents 70%-90% faster, delivering ~75% faster root cause analysis cycles and reducing time dependency by 50%-70%.
Capital Allocation Execution
Share repurchases: 11.6M shares repurchased for $304M in FY26 (6% of outstanding shares repurchased since program inception) with ~ $300M capacity remaining. Net CapEx was $543M (slightly below expectations), and the company remains investment grade with well-laddered debt maturities.
KD Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
KD Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 06, 2026 | $14.70 | $13.12 | -10.75% |
Feb 09, 2026 | $23.49 | $10.59 | -54.92% |
Nov 04, 2025 | $27.43 | $26.14 | -4.70% |
Aug 04, 2025 | $36.70 | $28.94 | -21.14% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Kyndryl Holdings Incorporation (KD) report earnings?
Kyndryl Holdings Incorporation (KD) is schdueled to report earning on Aug 10, 2026, After Close (Confirmed).
What is Kyndryl Holdings Incorporation (KD) earnings time?
Kyndryl Holdings Incorporation (KD) earnings time is at Aug 10, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
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What is KD EPS forecast?
KD EPS forecast for the fiscal quarter 2027 (Q1) is <0.01.