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Dec 31, 2024
Kyndryl Q3 2025 Earnings Report
Kyndryl's financial performance was marked by revenue of $3.74 billion and net income of $215 million.
Key Takeaways
Kyndryl reported revenues of $3.74 billion for the quarter ended December 31, 2024, with a net income of $215 million, or $0.89 per diluted share. Adjusted pretax income was $160 million, and adjusted net income was $124 million, or $0.51 per diluted share. The company's total signings were $4.1 billion, reflecting a 10% year-over-year increase.
Revenues for the quarter ended December 31, 2024 totaled $3.74 billion, with pretax income at $258 million and net income at $215 million.
Adjusted EBITDA was $704 million, adjusted pretax income was $160 million, and adjusted net income was $124 million.
Kyndryl Consult experienced double-digit revenue growth during the quarter and over the past twelve months.
The company raised its earnings and cash flow outlook for fiscal year 2025 and reaffirmed constant-currency revenue growth in the fourth quarter, supported by continued strong signings growth.
Revenue by Geographic Location
Forward Guidance
Kyndryl is raising its earnings and cash flow outlook for its fiscal year 2025 and expects to deliver constant-currency revenue growth of approximately 2% in the fourth quarter.
Positive Outlook
- Adjusted pretax income of at least $475 million, representing a year-over-year increase of at least $310 million.
- Adjusted EBITDA margin of at least 16.7%, representing a year-over-year increase of at least 200 basis points.
- Adjusted free cash flow of approximately $350 million.
- Strong progress on three-A’s initiatives
- Robust signings growth that demonstrate customer demand
Challenges Ahead
- Failure to attract new customers, retain existing customers or sell additional services to customers
- Failure to meet growth and productivity objectives
- Competition
- Impacts of relationships with critical suppliers and partners
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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