Kyndryl Forecasts 4.1% Revenue Growth to $3.90B and $0.60 EPS
Kyndryl will report Q4 results Monday pre-market, with analysts expecting revenue of $3.90B, up 4.1% year-over-year, reversing last year’s 4.9% decline, and adjusted EPS of $0.60. The company missed revenue estimates by 2.9% last quarter, reporting $3.72B, and has missed forecasts four times in two years, while peers IBM and Gartner posted 12.1% and 2.2% revenue growth respectively.
1. Q4 Earnings Preview
Kyndryl will release its Q4 results Monday before market open, with analysts projecting revenue of $3.90 billion, a 4.1% year-on-year increase, and adjusted earnings of $0.60 per share. This follows a disappointing Q3 where revenue declined and EPS missed consensus.
2. Recent Performance Trends
In Q3, Kyndryl generated $3.72 billion in revenue, down 1.4% year-on-year and 2.9% below analyst estimates. The company has failed to meet revenue forecasts in four of the past eight quarters, highlighting ongoing top-line challenges.
3. Peer Comparisons
IBM delivered 12.1% revenue growth in its latest quarter, beating estimates by 2.5%, while Gartner posted 2.2% growth in line with expectations. IBM shares rose 5.1% on the results, whereas Gartner fell 22%, illustrating mixed sector reactions.
4. Analyst Sentiment and Stock Performance
Analysts have maintained their Q4 estimates over the past 30 days and assign an average price target of $37.67. Kyndryl’s shares are down 12.9% in the last month compared with a 1.9% decline for its IT services & consulting peers.