Kyndryl (KD) Q1 EPS Drops 55 Percent
Kyndryl (NYSE:KD), the world’s largest IT infrastructure services provider, reported its first quarter fiscal 2026 results on August 4, 2025. The key news from the release was a significant earnings and revenue miss: Earnings per share came in at $0.37 (non-GAAP), missing the analyst estimate of $0.83, and GAAP revenue was flat at $3.74 billion, missing consensus expectations of $3.92 billion by 4.6%. Despite the shortfall, the company delivered a 16% year-over-year increase in adjusted EBITDA and a notable improvement in profitability. Management reiterated its full-year guidance, pointing to high-margin growth in consulting, cloud partnerships, and an expanding services backlog. Overall, the quarter showed operational progress in margins and signings but raised questions about forecasting reliability and top-line momentum.
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q4 2025 earnings report.
Kyndryl (NYSE:KD) designs, manages, and modernizes complex information technology (IT) systems for enterprise clients. Its services cover cloud, data management, security, artificial intelligence (AI), and networking. The company’s core business is helping large organizations navigate digital transformation by upgrading, securing, and running critical IT infrastructure, both in-house and in the cloud.
Source Fool.com
