Kyndryl Holdings reported results for the quarter ended June 30, 2026, with revenue of $3.6 billion and a GAAP net loss of $55 million (loss of $0.25 per diluted share). Adjusted EBITDA was $512 million and adjusted net loss was $26 million (adjusted EPS loss of $0.12). The quarter included $152 million of workforce rebalancing charges and the company reaffirmed its fiscal 2027 outlook for adjusted pretax income, free cash flow and revenue range.

Financial Highlights

  • Revenue: $3.618 billion for the three months ended June 30, 2026 (down 3% year-over-year on a reported and constant-currency basis).
  • Gross profit / margin: (Not explicitly provided in the filing; omitted.)
  • Operating items included workforce rebalancing charges of $152 million and impairment expense of $38 million; total costs and expenses were $3.687 billion.
  • Pretax (GAAP) loss: $69 million; Provision for income taxes: $14 million; Net loss (GAAP): $55 million, or $(0.25) per diluted share.
  • Adjusted metrics (non-GAAP): Adjusted pretax loss of $37 million, adjusted net loss of $26 million, adjusted diluted EPS loss of $0.12, and Adjusted EBITDA of $512 million (Adjusted EBITDA margin 14.2%).

Business Highlights

  • Signings momentum: $3.9 billion of signings in the quarter and $14.2 billion in the trailing twelve months, including 40 customer contracts >$50 million over the last year (10 signed in the quarter).
  • Kyndryl Consult growth: Kyndryl Consult revenues grew 10% year-over-year in the quarter and totaled $3.6 billion over the last twelve months (14% year-over-year increase).
  • Hyperscaler channel: Hyperscaler-related revenues exceeded $530 million in the quarter, up 34% year-over-year, exiting the quarter at an annualized run-rate above $2.1 billion.
  • AI-led modernization initiatives: Launched Kyndryl AI Orchestration for Business, introduced a patented agentic AI capability in Kyndryl Bridge, and published a People Readiness Report on enterprise AI adoption.
  • Operational streamlining: Workforce rebalancing actions incurred $152 million in charges in the quarter, with expected ~ $200 million total charges in fiscal 2027 and anticipated annualized run-rate operating expense savings of $400–$500 million in fiscal 2028 once complete.

Original SEC Filing:

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.