Kyndryl misses quarterly estimates on weak revenue and charges linked to job cuts
KD•Outlook reaffirmed as signings rise
- Kyndryl reaffirmed its fiscal 2027 outlook for adjusted pretax income of $600 million to $700 million and free cash flow of $400 million to $500 million.
- Total signings rose to $3.9 billion in the quarter from $3.2 billion a year earlier.
- Kyndryl signed 10 customer contracts exceeding $50 million each during the quarter.
- The New York-based company was spun off from IBM in 2021 and provides IT infrastructure, cloud, AI and cybersecurity services to businesses.
- The company has partnered with Amazon Web Services, Google Cloud and Microsoft Azure to help customers move and manage their IT systems in the cloud.
Quarterly results miss estimates on weaker demand and rebalancing charges
Aug. 5 (Reuters) - IT services provider Kyndryl missed Wall Street estimates for the first quarter on Wednesday, as lower demand and charges tied to its workforce rebalancing plan weighed on results.
The company's shares closed more than 5% lower on Wednesday. They have declined nearly 50% so far this year.
Revenue in Kyndryl's largest geographic segment, Principal Markets, fell 7% in the quarter to $1.26 billion.
- The company's first-quarter revenue of $3.62 billion missed analysts' average estimate of , according to data compiled by LSEG.
