Kyndryl misses quarterly estimates on weak sales and charges linked to job cuts

• 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.

• Kyndryl also incurred $152 million of workforce rebalancing charges during the first quarter.
• The company had announced a workforce rebalancing plan last quarter aimed at cutting annual operating costs by $400 million to $500 million by fiscal 2028.
• 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.

Aug. 5 (Reuters) - IT services provider Kyndryl missed Wall Street estimates for the first quarter on Wednesday, pressured by lower demand and charges linked to its workforce rebalancing plan.

The company's shares were down 2.7% in premarket trading.

• Revenue in Kyndryl's largest geographic segment, Principal Markets, declined 7% in the quarter to $1.26 billion.
• The company's first-quarter revenue of $3.62 billion missed analysts' average estimate of $3.64 billion, according to data compiled by LSEG.
• Its pretax loss for the quarter came in at $69 million, compared with estimates of a $61.5 million loss.