Loading...
•
Dec 31, 2025
Kyndryl Q3 2026 Earnings Report
Kyndryl reported its third quarter fiscal year 2026 earnings, showing revenue growth and strong performance in Kyndryl Consult.
Key Takeaways
Kyndryl reported revenues of $3.9 billion for the third quarter ended December 31, 2025, a 3% year-over-year increase. The company achieved a net income of $57 million and an adjusted EBITDA of $696 million. Kyndryl Consult demonstrated double-digit revenue growth, and hyperscaler-related revenue also saw significant growth.
Revenues for the quarter ended December 31, 2025, totaled $3.9 billion, marking a 3% year-over-year increase.
Adjusted EBITDA reached $696 million, with adjusted pretax income at $168 million and adjusted net income at $122 million.
Kyndryl Consult delivered double-digit revenue growth in the quarter, specifically 24% year-over-year.
Hyperscaler-related revenue grew by 58% year-over-year, contributing $500 million in the third quarter.
Revenue by Geographic Location
Forward Guidance
Kyndryl provided an outlook for fiscal year 2026, projecting adjusted pretax income between $575 million and $600 million, and an adjusted EBITDA margin of approximately 17.5%.
Positive Outlook
- Adjusted pretax income is projected to be between $575 million and $600 million.
- Adjusted EBITDA margin is expected to be approximately 17.5%.
- Free cash flow is anticipated to be between $325 million and $375 million.
- The company is on track to exceed its initial hyperscaler revenue target of $1.8 billion for fiscal 2026.
- Kyndryl Consult revenues are expected to continue strong performance, with $4.1 billion in signings over the last twelve months.
Challenges Ahead
- Constant-currency revenue is projected to decline by 2% to 3%.
- The filing of Kyndryl's Quarterly Report on Form 10-Q will be delayed pending a review.
- The company faces risks related to attracting and retaining customers and skilled employees.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...