Kyndryl beats Q2 revenue, profit estimates
KD•Kyndryl reported Q2 revenue of $3.65 billion, slightly above estimates, and adjusted EBITDA of $699 million, beating estimates of $616.54 million. It reaffirmed its fiscal 2027 outlook, including adjusted pretax income of $600 million to $700 million.
1. Quarterly results
Kyndryl's Q2 revenue fell 1.9% year over year to $3.65 billion, slightly exceeding the $3.62 billion analyst estimate. Adjusted EBITDA rose and reached $699 million, above the $616.54 million estimate; net income was $59 million and EPS was $0.27.
2. Fiscal 2027 outlook
The company reaffirmed its fiscal 2027 adjusted pretax income outlook of $600 million to $700 million and expects free cash flow of $400 million to $500 million. It sees constant-currency revenue flat to down 2%.
3. Growth and costs
Kyndryl cited strong contract signings and growth in Kyndryl Consult and hyperscaler-related revenue as key drivers, according to CEO Martin Schroeter. Hyperscaler-related revenue grew 27.2% year over year. The company incurred $38 million in workforce rebalancing charges and expects cost savings in future periods; it also completed its acquisition of Healthcare IT Leaders.
