Kyndryl Q1 revenue misses estimates on weak segment performance
KD•Outlook
- Kyndryl reaffirms fiscal 2027 adjusted pretax income guidance of $600 mln to $700 mln
- Company expects fiscal 2027 free cash flow of $400 mln to $500 mln
- Kyndryl forecasts fiscal 2027 constant-currency revenue flat to down 2%
Overview
- US enterprise tech services provider's fiscal Q1 revenue fell 3% and slightly missed analyst expectations
- Adjusted EBITDA for fiscal Q1 beat estimates
- Company incurred $152 mln workforce rebalancing charges and repurchased 5 mln shares for $64 mln
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q1 Revenue | Slight Miss* | $3.62 bln | $3.64 bln (5 Analysts) |
| Q1 Adjusted Loss Per Share | $0.12 | ||
| Q1 Loss Per Share | $0.25 | ||
| Q1 Net Loss | $55 mln | ||
| Q1 Adjusted EBITDA | Beat | $512 mln | $445.04 mln (4 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Result drivers
- - $152 mln in workforce rebalancing charges weighed on Q1 results as part of ongoing streamlining efforts
