Kyndryl Q4 revenue slightly beats estimates, adjusted EBITDA tops forecasts

Kyndryl Holdings

06/05/2026 12:12

Overview

U.S. enterprise tech services firm's fiscal Q4 revenue slightly beat analyst expectations

Adjusted EBITDA for fiscal Q4 beat analyst estimates

Company repurchased 11.6 mln shares in fiscal 2026, including 3.3 mln in Q4

Outlook

Kyndryl sees fiscal 2027 adjusted pretax income of $600 mln to $700 mln

Company expects fiscal 2027 free cash flow of $400 mln to $500 mln

Kyndryl forecasts fiscal 2027 constant-currency revenue flat to down 2%

Result Drivers

HIGHER TAX EXPENSE - Q4 income tax expense rose due to a non-recurring, non-cash tax accrual from refinement of certain tax positions

AI AND AUTOMATION INITIATIVES - Advanced Delivery and Accounts initiatives, including AI-enabled automation, contributed to earnings growth and margin expansion in fiscal 2026

CONSULTING AND HYPERSCALER GROWTH - Full-year growth in Kyndryl Consult and hyperscaler-related revenues supported overall performance

Company press release: ID:nPn6qD83Fa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
$3.77 bln
$3.75 bln (5 Analysts)
Q4 EPS
$0.08
Q4 Net Income
$17 mln
Q4 Adjusted EBITDA
Beat
$688 mln
$673 mln (5 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 1 "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 $16.00, about 8.8% above its May 5 closing price of $14.70

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)