Kyndryl (KD) Misses Q2 EPS by 1c; reaffirms outlook

Kyndryl (NYSE: KD) reported Q2 EPS of $0.38, $0.01 worse than the analyst estimate of $0.39. Revenue for the quarter came in at $3.72 billion versus the consensus estimate of $3.84 billion.

Reaffirms Fiscal Year 2026 Outlook

Kyndryl reaffirms its outlook for its fiscal 2026, which runs from April 2025 to March 2026:

Adjusted pretax income of at least $725 million, representing a year-over-year increase of at least $243 million.
Adjusted EBITDA margin of approximately 18%, representing a year-over-year increase of approximately 130 basis points.
Free cash flow of approximately $550 million, reflecting cash taxes of approximately $175 million.
Constant-currency revenue growth of 1%.

The Company\'s full-year outlook reflects second-half revenue that is expected to be stronger than first-half revenue, driven by a larger revenue contribution from opening backlog, accelerated growth in Kyndryl Consult and hyperscaler-related revenue, and a record pipeline of in-process deals.

For earnings history and earnings-related data on Kyndryl (KD) click here.

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