Question-and-Answer SessionSo I guess I wanted to start kind of thinking about the high level as an independent company, you guys have obviously changed the whole picture here for Kyndryl. Cultural transformations, the 3As, investments and partnerships and technology I was hoping you could start maybe and highlight the core elements of your strategy, why Kyndryl matters to its customers and what you see driving the success?Martin SchroeterChairman & CEO No, no, no. It's a great question. Great question. So ...

Kyndryl (KD) 2025 Conference September 03, 2025 10:50 AM ET Company ParticipantsDavid Wyshner - CFOMartin Schroeter - Chairman & CEONoneI cover IT services at Citi, and we're excited to have Kendra here today. And format, what we'll do is we'll go through some fireside chat questions, and then feel free to to raise your hand, and and we'll try to get to you before before we're out of time. But we're excited to have Martin Schroeder as the CEO and David Weiser as the CFO. So we're kicking off, and thanks for ...

NEW YORK, Aug. 26, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced that Chairman and Chief Executive Officer Martin Schroeter and Chief Financial Officer David Wyshner will speak at the Citi Global TMT Conference on Wednesday, September 3, 2025 at 10:50 a.m. ET. During the course of the event, they will discuss the Company's business and financial performance.To listen to the live webcast, please visit Kyndryl's investor relatio ...

Commitment builds on Kyndryl's existing presence in the country and advances AI initiatives, while fostering the next generation of technology talent BENGALURU, India, Aug. 21, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission- critical enterprise technology services, today announced its growth plans in India with a focus on modernizing essential technology infrastructure for leading organizations. As part of this $2.25 billion commitment over the next three years, Kyndryl is focusing o ...

In partnership with the White House Task Force on Artificial Intelligence Education, Kyndryl and other organizations are helping drive an effort to make AI education accessible to K-12 students across the United States. Learn about Kyndryl's Data and Artificial Intelligence services. More information about the Kyndryl Foundation is available here. About Kyndryl NEW YORK, Aug. 18, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced t ...

Sometimes it's the not-so-familiar names that offer the potential for market-beating returns. For those keenly focused on artificial intelligence (AI) stocks, there are the usual suspects. From graphics processing unit (GPU) leader Nvidia to hyperscalers like CoreWeave and Nebius, it's unsurprising when investors focused on AI stocks find certain names popping up again and again -- and again. But the lack of popularity with respect to other AI-focused companies doesn't mean that their stocks are any less de ...

Group 1 - The article maintains a bullish outlook on the company (NYSE: KD) due to its partnership with HPE aimed at accelerating the adoption of private cloud solutions [1] - The analyst emphasizes a unique investment approach called "First Principles," which focuses on breaking down complex financial and technological problems to identify overlooked investment opportunities [1] - The analyst has a strong background in investment, private equity, and venture capital, with a proven track record of delivering strong returns [1] Group 2 - The articles published on Seeking Alpha concentrate on emerging technologies, sustainable investing, and the intersection of innovation and finance [1] - The analyst expresses a commitment to sharing insights with a broader audience and learning from fellow investors to drive positive change [1]

NEW YORK, Aug. 6, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced an expansion of its global strategic alliance with HPE to deliver services that enable and support customer adoption of HPE Private Cloud AI, a turnkey enterprise AI factory solution co-developed with NVIDIA. As part of the expanded collaboration, Kyndryl Consult will provide its AI private cloud services and accelerators to enable a seamless experience for custom ...

Kyndryl (KD -20.98%), 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 nota ...

[Part I - Financial Information](index=4&type=section&id=Part%20I%20-%20Financial%20Information) [Item 1. Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) Kyndryl's unaudited consolidated financial statements for Q1 FY2026 show a significant increase in net income and detailed financial notes [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Kyndryl's Q1 FY2026 financial results show stable revenue, a substantial increase in net income, and growth in total assets Consolidated Income Statement Highlights | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenues** | $3,743 million | $3,739 million | | **Income before income taxes** | $92 million | $64 million | | **Net income** | $56 million | $11 million | | **Diluted earnings per share** | $0.23 | $0.05 | Consolidated Balance Sheet Summary | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Total current assets** | $4,468 million | $4,589 million | | **Total assets** | $11,495 million | $10,452 million | | **Total current liabilities** | $4,242 million | $4,300 million | | **Total liabilities** | $10,151 million | $9,121 million | | **Total equity** | $1,343 million | $1,331 million | Consolidated Statement of Cash Flows Summary | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | ($124) million | ($48) million | | **Net cash used in investing activities** | ($74) million | ($166) million | | **Net cash used in financing activities** | ($170) million | ($51) million | | **Net change in cash, cash equivalents and restricted cash** | ($323) million | ($281) million | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes on accounting policies, segment performance, and strategic initiatives, including workforce rebalancing and share repurchases, are provided - At June 30, 2025, the aggregate amount of remaining performance obligations (RPO) related to customer contracts was **$34.8 billion**. Approximately **57%** is expected to be recognized as revenue in the next two years[34](index=34&type=chunk) Segment Adjusted EBITDA | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | United States | $196 million | $133 million | | Japan | $115 million | $83 million | | Principal Markets | $197 million | $241 million | | Strategic Markets | $163 million | $120 million | | **Total Segments** | **$672 million** | **$577 million** | - The company initiated a new workforce rebalancing program (Fiscal 2026 Program) during the quarter, expecting to incur approximately **$80 million** in charges to reduce its cost structure[102](index=102&type=chunk) - During the quarter, the company repurchased **1.8 million shares** of its common stock for an aggregate cost of **$65 million** under its Share Repurchase Program[98](index=98&type=chunk) - The effective tax rate for the quarter was **39.1%**, a significant decrease from **82.7%** in the prior-year period, primarily due to taxes on foreign operations and valuation allowances[51](index=51&type=chunk)[52](index=52&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Kyndryl's financial performance, highlighting stable revenue, increased net income, segment results, and strategic cost-saving initiatives [Financial Performance Summary](index=33&type=section&id=Financial%20Performance%20Summary) Kyndryl's Q1 FY2026 revenue remained flat, while net income significantly increased due to lower taxes and reduced charges Q1 FY2026 Financial Highlights | Metric | Q1 FY2026 (ended June 30, 2025) | Q1 FY2025 (ended June 30, 2024) | | :--- | :--- | :--- | | **Revenue** | $3,743 million | $3,739 million | | **Revenue Growth (GAAP)** | 0% | (11)% | | **Revenue Growth (Constant Currency)** | (3)% | (8)% | | **Net Income** | $56 million | $11 million | | **Adjusted EBITDA** | $647 million | $556 million | - The **$45 million** increase in net income was primarily due to a lower provision for income taxes, reduced workforce rebalancing charges, and no transaction-related costs in the current period[114](index=114&type=chunk) [Segment Results](index=34&type=section&id=Segment%20Results) Segment analysis reveals varied performance, with total adjusted EBITDA increasing by **16%** despite revenue declines in some markets, driven by efficiency gains and specific market dynamics Segment Performance (YoY Change) | Segment | Revenue Change | Adjusted EBITDA Change | | :--- | :--- | :--- | | United States | (8)% | +48% | | Japan | +2% | +39% | | Principal Markets | +3% | (18)% | | Strategic Markets | +3% | +36% | | **Total** | **0%** | **+16%** | - The decline in U.S. revenue was driven by efforts to reduce low-margin revenues and the expiration of certain pre-spin-off contracts[123](index=123&type=chunk) - The decrease in Principal Markets' adjusted EBITDA was primarily due to a vendor credit received in the prior-year period[125](index=125&type=chunk) [Workforce Rebalancing and Site-Rationalization Charges](index=37&type=section&id=Workforce%20Rebalancing%20and%20Site-Rationalization%20Charges) The company initiated a new workforce rebalancing program, incurring **$25 million** in charges this quarter, aiming for significant annual payroll savings alongside ongoing benefits from a prior program - A new "Fiscal 2026 Program" was initiated, with **$25 million** in charges taken in the quarter. Total expected charges are **~$80 million**, with expected annual savings of over **$100 million**[131](index=131&type=chunk)[132](index=132&type=chunk) - The prior "Fiscal 2025 Program" is expected to reduce payroll, rent, and depreciation costs by more than **$200 million** in fiscal year 2026[135](index=135&type=chunk) [Financial Position and Cash Flow](index=39&type=section&id=Financial%20Position%20and%20Cash%20Flow) Total assets increased by **$1.0 billion** due to deferred costs, while net cash used in operating and financing activities significantly increased due to share repurchases and tax withholdings - Total assets increased by **$1.0 billion**, primarily driven by a **$1.1 billion** increase in deferred costs related to an extended multi-year, third-party software agreement[139](index=139&type=chunk) Cash Flow Summary | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Operating Activities** | ($124) million | ($48) million | | **Investing Activities** | ($74) million | ($166) million | | **Financing Activities** | ($170) million | ($51) million | - The increase in cash used for financing activities was mainly due to **$65 million** in share repurchases and **$67 million** of shares repurchased to settle tax withholdings[145](index=145&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through existing cash and an undrawn **$3.15 billion** revolving credit facility, while actively managing capital through trade receivable sales and share repurchases - The company's **$3.15 billion** multi-currency revolving credit agreement was amended to extend its maturity to March 2030. It remained undrawn as of June 30, 2025[154](index=154&type=chunk) - Gross proceeds from the sale of trade receivables to third parties were **$0.6 billion** for the quarter[157](index=157&type=chunk) - During the quarter, **1.8 million shares** were repurchased for **$65 million**. As of June 30, 2025, **$141 million** remained available under the **$300 million** share repurchase authorization[160](index=160&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risk disclosures have occurred since the prior fiscal year's Form 10-K filing - There have been no material changes to the Company's disclosure about market risk since the Form 10-K for the fiscal year ended March 31, 2025[166](index=166&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by this report[167](index=167&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[168](index=168&type=chunk) [Part II - Other Information](index=48&type=section&id=Part%20II%20-%20Other%20Information) [Item 1. Legal Proceedings & Item 1A. Risk Factors](index=48&type=section&id=Item%201.%20Legal%20Proceedings%20%26%20Item%201A.%20Risk%20Factors) Information on legal proceedings is referenced in Note 10, with no material changes to previously disclosed risk factors - Information regarding legal proceedings is available in Note 10 – Commitments and Contingencies[170](index=170&type=chunk) - There have been no material changes to the risk factors previously disclosed in the Form 10-K[171](index=171&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company repurchased **1,779,698 shares** of common stock for **$65 million** under its **$300 million** Share Repurchase Program, with **$141 million** remaining available Common Stock Repurchases (Q1 FY2026) | Period | Total Shares Repurchased | Average Price Paid Per Share | Approximate Dollar Value Remaining (in millions) | | :--- | :--- | :--- | :--- | | April 2025 | 595,693 | $30.23 | $188 | | May 2025 | 339,241 | $36.97 | $175 | | June 2025 | 844,764 | $40.78 | $141 | | **Total** | **1,779,698** | **N/A** | **$141** | [Other Items (Items 3, 4, 5, 6)](index=48&type=section&id=Other%20Items%20(Items%203%2C%204%2C%205%2C%206)) The company reported no defaults on senior securities, confirmed no Rule 10b5-1 trading arrangement changes by officers, and included a list of filed exhibits - The company reported no defaults upon senior securities[174](index=174&type=chunk) - During the quarter, no directors or executive officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement[176](index=176&type=chunk)