Kyndryl Cuts FCF Guidance to $325–375M After Q3 EPS Miss; Arnhold LLC Boosts Stake 19.5%
Kyndryl’s fiscal Q3 EPS of $0.52 and $3.86 billion revenue fell short of forecasts, leading to full-year free cash flow guidance cut to $325–375 million from about $550 million and a 2–3% sales decline outlook. Simultaneously, Arnhold LLC boosted its stake by 19.5% to 1.01 million shares.
1. Q3 Earnings Miss and Guidance Cut
Kyndryl reported fiscal third-quarter EPS of $0.52 and revenue of $3.86 billion, below analyst expectations of $0.60 and $3.91 billion. The company lowered its full-year free cash flow guidance to $325–375 million from about $550 million and now anticipates a 2–3% sales decline.
2. Arnhold LLC Increases Stake
Arnhold LLC boosted its position in Kyndryl by 19.5%, acquiring an additional 164,856 shares to reach 1,010,671 total shares, making the company account for 2.5% of its portfolio. This move signals institutional confidence despite recent financial headwinds.
3. Expansion of AI Skilling Programs in India
Kyndryl committed US$2.25 billion toward AI training initiatives in India, aiming to upskill 50,000 students, 30,000 youth and 1,000 teachers across government schools and public-sector platforms over the next two to three years.