Kyndryl reported third quarter revenues of $3.9 billion, up 3% on a reported basis and flat in constant currency. Pretax income was $91 million versus $258 million in the prior year period, with net income of $57 million ($0.25 per share) compared to $215 million ($0.89); adjusted pretax income rose to $168 million, adjusted net income was $122 million and adjusted EBITDA totaled $696 million, while cash flow from operations reached $427 million and free cash flow was $217 million. Trailing-twelve-month signings totaled $15.4 billion, including eleven contracts over $50 million.

Revenue tied to cloud hyperscaler alliances grew 58% to $500 million in the quarter, putting the company on track to exceed its $1.8 billion target for fiscal 2026. Kyndryl Consult delivered 24% year-over-year growth in the quarter, with $3.6 billion in revenues and $4.1 billion in signings over the past twelve months. The firm expanded its AI portfolio with new agentic AI services across hybrid, multi-cloud and mainframe environments, and one-quarter of all recent signings include AI components.

Effective immediately, Harsh Chugh was named Interim Chief Financial Officer, Mark Ringes Interim General Counsel and Bhavna Doegar Interim Corporate Controller. The company also agreed to acquire Solvinity Group B.V., a Netherlands-based secure managed cloud provider, subject to regulatory approvals and expected to close in the first half of calendar 2026.

Kyndryl updated its fiscal year 2026 outlook, targeting adjusted pretax income of $575 million to $600 million, an adjusted EBITDA margin of approximately 17.5%, free cash flow of $325 million to $375 million and a constant-currency revenue decline of 2% to 3%.