IT infrastructure provider Kyndryl's Q2 revenue down 1%, misses estimates

Kyndryl Holdings

04/11/2025 21:28

Overview

Kyndryl fiscal Q2 revenue declines 1% yr/yr, missing analyst expectations

Adjusted EBITDA for fiscal Q2 beats analyst expectations

Company announces additional $400 mln share repurchase authorization

Outlook

Kyndryl reaffirms fiscal 2026 outlook with adjusted pretax income of at least $725 mln

Company expects adjusted EBITDA margin of approximately 18% for fiscal 2026

Kyndryl anticipates free cash flow of approximately $550 mln for fiscal 2026

Result Drivers

HYPERSCALER ALLIANCES - Revenue from cloud hyperscaler alliances grew 65% yr/yr, exceeding initial targets

KYDRYL CONSULT GROWTH - Kyndryl Consult revenues grew 28% yr/yr, driven by strategic initiatives

AI AND AUTOMATION - AI-enabled automation through Kyndryl Bridge platform contributed to earnings growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$3.72 bln
$3.84 bln (3 Analysts)
Q2 EPS
$0.29
Q2 Net Income
$68 mln
Q2 Adjusted EBITDA
Beat
$641 mln
$618.33 mln (3 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Kyndryl Holdings Inc is $39.12, about 26.5% above its November 3 closing price of $28.75

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nPn5pSdWza

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)