Kyndryl Sees $3.77B Q4 Revenue, Plans $400M+ Cost Cuts
Kyndryl’s Q4 revenue reached $3.77 billion, buoyed by almost $2 billion in hyperscaler-related services, while adjusted profit fell to $0.18 per share. The company will cut jobs to secure $400–500 million in annual savings by fiscal 2028, forecasts pretax income of $600–700 million and faces a 3-point IBM headwind.
1. Q4 Financial Performance
Kyndryl posted Q4 revenue of $3.77 billion, driven by nearly $2 billion in hyperscaler-related and consulting services, while adjusted profit declined to $0.18 per share, below analyst expectations.
2. Cost Reduction and Job Cuts
The company will record about $200 million in charges for severance and benefits as it cuts jobs to achieve $400–500 million in annual operating savings by fiscal 2028.
3. Lower Forecast and IBM Headwind
Kyndryl forecasts fiscal 2027 pretax income of $600–700 million, below the $672.7 million consensus, and faces a three-point revenue headwind as customers purchase hardware and software directly from IBM.
4. Agentic AI Transition
Kyndryl is shifting to an Agentic AI framework, deploying AI agents in Kyndryl Bridge to speed incident resolution by 70–90% and cut human labor dependency by 50–70%, while targeting mission-critical modernization and private cloud transformations.