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Gotrade News - Kyndryl (KD) reported revenue of $3.7 billion for its fiscal second quarter ended September 30, 2026, down 1.9% year-over-year, and net income of $59 million, or $0.27 per diluted share, according to Kyndryl's official release on Wednesday, November 4, 2026.
Regular-session close on November 4, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com. Market cap: that close times the shares outstanding on the latest 10-Q or 10-K cover (SEC EDGAR).
Kyndryl Earnings Details
In constant currency, revenue was down 0.8% year-over-year, the company said. Pretax income was $112 million, compared with $98 million in the prior-year period, while net income compared with $68 million, or $0.29 per diluted share, a year earlier. The quarter included workforce rebalancing charges of $38 million, compared with $19 million in the prior-year period.
On an adjusted basis, Kyndryl reported adjusted net income of $92 million, or $0.42 per diluted share, compared with $89 million, or $0.38 per diluted share, in the prior-year period. Adjusted pretax income was $150 million, against $123 million, and adjusted EBITDA was $699 million, against $641 million. Cash provided by operations was $172 million, compared with $147 million, while free cash flow was a use of $34 million, compared with a source of cash of $22 million in the prior year.
The company reaffirmed its outlook for fiscal 2027, which runs from April 2026 to March 2027: adjusted pretax income of $600 million to $700 million, free cash flow of $400 million to $500 million and constant-currency revenue "flat to down 2%".
Why It Matters for KD
Chairman and Chief Executive Officer Martin Schroeter said "strong signings and continued growth in Kyndryl Consult and hyperscaler-related revenue reinforce our confidence in our fiscal 2027 outlook." According to the release, signings were $4.1 billion in the quarter and $15.5 billion over the trailing twelve months. Kyndryl Consult revenues grew 4.2% year-over-year in the quarter, and hyperscaler-related revenues of more than $550 million grew 27.2% year-over-year.
Kyndryl said it continues to expect approximately $200 million of workforce rebalancing charges in fiscal 2027, of which $190 million were incurred in the first half, with savings expected to begin in the second half of the fiscal year that will largely offset the charges. Once completed, the company expects these actions to result in annualized run-rate operating expense savings of approximately $400 million to $500 million in fiscal 2028.
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M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
