For the quarter ended June 30, 2025, Kyndryl reported non-GAAP earnings per share of $0.37, a 55% miss versus the $0.83 consensus estimate, while GAAP revenue was flat at $3.74 billion, falling short of the $3.92 billion forecast. Despite the top-line shortfall, adjusted EBITDA rose 16% year-over-year to $647 million, lifting the margin to 17.3% from 14.9%. Signings grew 3% to $3.2 billion, driven by a 36% surge in consulting contracts and an 86% jump in cloud-alliance revenue to $400 million. Free cash flow (non-GAAP) was negative $222 million, reflecting seasonal working-capital drawdowns, while cash and equivalents stood at $1.46 billion against $3.14 billion of debt. Management reiterated full-year guidance calling for at least $725 million in adjusted pre-tax income, an 18% EBITDA margin and roughly $550 million in free cash flow. Kyndryl announced an expansion of its global strategic alliance with Hewlett Packard Enterprise to deliver turnkey HPE Private Cloud AI solutions co-developed with NVIDIA. Under the enhanced collaboration, Kyndryl Consult will deploy AI private cloud services and proprietary accelerators—leveraging HPE’s observability, automation and unified control-plane technologies—to develop, implement and scale generative AI workloads across private and on-premises environments. The partnership targets industry‐specific use cases in healthcare, where secure handling of patient data can improve diagnostics and personalized treatments, and in financial services, where risk management, fraud detection and process automation are paramount. This builds on Kyndryl’s prior initiative in France and extends to over 60 countries, reinforcing its position as the world’s largest IT infrastructure services provider. Kyndryl entered a strategic collaboration with Nova Intelligence to integrate multi-agent AI capabilities into its SAP modernization and data transformation services. The alliance will leverage Nova’s AI agents to document, analyze, refactor and unit-test custom SAP code, enabling customers to migrate to SAP Cloud ERP (formerly S/4HANA) and achieve Clean Core compliance more quickly and cost-effectively. Nova Intelligence’s founding team—responsible for over 150 S/4HANA transformations and 500 HANA projects—backs the solution with proven AI models. Internally, Kyndryl has already used these agents to modernize two critical legacy SAP applications, cutting manual development effort by a substantial margin and reducing transformation costs. The partnership complements Kyndryl’s status as a RISE with SAP delivery partner and enhances its ability to guide enterprises through end-to-end SAP digital transformations.
For the quarter ended June 30, 2025, Kyndryl reported non-GAAP earnings per share of $0.37, a 55% miss versus the $0.83 consensus estimate, while GAAP revenue was flat at $3.74 billion, falling short of the $3.92 billion forecast. Despite the top-line shortfall, adjusted EBITDA rose 16% year-over-year to $647 million, lifting the margin to 17.3% from 14.9%. Signings grew 3% to $3.2 billion, driven by a 36% surge in consulting contracts and an 86% jump in cloud-alliance revenue to $400 million. Free cash flow (non-GAAP) was negative $222 million, reflecting seasonal working-capital drawdowns, while cash and equivalents stood at $1.46 billion against $3.14 billion of debt. Management reiterated full-year guidance calling for at least $725 million in adjusted pre-tax income, an 18% EBITDA margin and roughly $550 million in free cash flow. Kyndryl announced an expansion of its global strategic alliance with Hewlett Packard Enterprise to deliver turnkey HPE Private Cloud AI solutions co-developed with NVIDIA. Under the enhanced collaboration, Kyndryl Consult will deploy AI private cloud services and proprietary accelerators—leveraging HPE’s observability, automation and unified control-plane technologies—to develop, implement and scale generative AI workloads across private and on-premises environments. The partnership targets industry‐specific use cases in healthcare, where secure handling of patient data can improve diagnostics and personalized treatments, and in financial services, where risk management, fraud detection and process automation are paramount. This builds on Kyndryl’s prior initiative in France and extends to over 60 countries, reinforcing its position as the world’s largest IT infrastructure services provider. Kyndryl entered a strategic collaboration with Nova Intelligence to integrate multi-agent AI capabilities into its SAP modernization and data transformation services. The alliance will leverage Nova’s AI agents to document, analyze, refactor and unit-test custom SAP code, enabling customers to migrate to SAP Cloud ERP (formerly S/4HANA) and achieve Clean Core compliance more quickly and cost-effectively. Nova Intelligence’s founding team—responsible for over 150 S/4HANA transformations and 500 HANA projects—backs the solution with proven AI models. Internally, Kyndryl has already used these agents to modernize two critical legacy SAP applications, cutting manual development effort by a substantial margin and reducing transformation costs. The partnership complements Kyndryl’s status as a RISE with SAP delivery partner and enhances its ability to guide enterprises through end-to-end SAP digital transformations.