Kyndryl FY27 Q1 swings to net loss of $55 million; revenue falls 3% to $3.6 billion

Fiscal 2027 outlook was reaffirmed, including non-GAAP adjusted pretax income of $600 million-$700 million and free cash flow of $400 million-$500 million.

Kyndryl posted a GAAP net loss of $55 million, or $(0.25) a share, on revenue of $3.6 billion, down 3% year over year.

GAAP pretax results swung to a $69 million loss; results included $152 million of workforce rebalancing charges.

Non-GAAP adjusted EBITDA fell to $512 million from a year earlier; non-GAAP adjusted net loss was $26 million, or $(0.12) a share.

Trailing 12-month signings totaled $14.2 billion, including $3.9 billion in the quarter; hyperscaler-related revenue rose 34% to more than $530 million.