Group 1 - Kyndryl announced an investment of €100 million in France focused on data, artificial intelligence, and network resilience [1]

Core Insights - Kyndryl will invest up to €100 million over three years in France to enhance capabilities in data, AI, and cyber resilience [1] - The investment aligns with France's ambition to foster new technologies and develop talent for economic growth and competitiveness [3] Investment Details - The investment plan includes hiring up to 300 experts in data, AI, and cyber resilience to support customers in France [7] - Kyndryl will launch an AI private cloud for French customers to accelerate the development and deployment of enterprise AI solutions [7] - A new digital hub focused on AI and cybersecurity will be established in Sophia-Antipolis, partnering with educational institutions to provide career opportunities [7] Market Context - Only 28% of French business leaders believe their workforces are fully prepared to leverage AI, with 50% citing a lack of skilled talent [4] - Kyndryl's initiatives aim to address these skill gaps and enhance the IT infrastructure necessary for advancing France's technology agenda [4]

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Kyndryl Holdings, Inc. (KD) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Kyndryl Holdings, Inc. currently has an average bro ...

Core Insights - Kyndryl has launched its first global employer brand campaign titled "progress with purpose," emphasizing its commitment to meaningful progress in the workplace [4] - The company has been certified as a Great Place To Work® in multiple countries, reflecting positive employee experiences and a strong workplace culture [1][2] - Kyndryl has received over 70 workplace awards, showcasing its recognition in the industry for employee satisfaction and retention [2] Company Overview - Kyndryl is a leading provider of mission-critical enterprise technology services, operating in over 60 countries and offering advisory, implementation, and managed service capabilities [6] - The company focuses on designing, building, managing, and modernizing complex information systems that are essential for daily operations globally [6] Employee Experience - Research indicates that job seekers are 4.5 times more likely to find a great boss at a certified workplace, and employees at such workplaces are 93% more likely to look forward to coming to work [3] - Kyndryl aims to foster a culture where employees feel included, supported, and equipped to make an impact in their roles and communities [5]

Kyndryl (KD) FY Conference Summary Company Overview - **Company**: Kyndryl (KD) - **Industry**: IT Services - **Date of Conference**: May 13, 2025 Key Points Company Performance and Strategy - Kyndryl has achieved positive revenue growth for the last quarter, marking a significant turnaround since becoming an independent company three and a half years ago [5][12] - The company has focused on a strategy termed the "three A's": alliances with major cloud providers (Microsoft, Google, AWS), advanced delivery improvements, and reimagining focus accounts to create sustainable relationships [9][10] - Kyndryl has improved profitability and cash flow significantly, with guidance for continued improvement in the current year [12][13] Revenue Growth and Financial Guidance - Kyndryl aims for mid-single-digit revenue growth in the medium term, which is deemed sufficient to drive substantial cash flow and profit growth [15][16] - The company reported a book-to-bill ratio of over 1 for the last year, indicating strong demand and a healthy backlog [17][27] - Kyndryl's signings grew by 46% year-over-year, showcasing broad-based strength across various geographies and verticals [27][28] Business Model and Market Position - Kyndryl's business model is characterized as mission-critical and non-discretionary, providing a level of insulation from economic cycles [20][21] - The company has established long-term contracts with clients, which helps maintain revenue stability [20][21] - Kyndryl is positioned to capture market share from competitors by leveraging its expertise and partnerships with hyperscalers [22][31] Consulting and Managed Services - Kyndryl Consult has grown from 10% to over 20% of total revenue, with expectations for double-digit growth [39] - Managed services have been declining but are expected to stabilize and return to growth by fiscal 2027 [40] Relationship with IBM - Kyndryl's software costs from IBM are expected to transition to a more standard pricing model by the end of the calendar year, reducing the financial burden significantly [41][42] - The relationship with IBM remains strong, with collaborative efforts to meet customer needs [44] Gross Margin and Profitability - Kyndryl reported a gross profit book-to-bill ratio of 1.5, indicating that the gross profit added to the backlog is significantly higher than the current churn rate [45][46] - The company anticipates continued gross margin expansion, with a focus on operational efficiencies [52] Future Outlook - Kyndryl is optimistic about its growth trajectory, emphasizing the importance of being a profitable and cash-generating company [58] - The company is exploring opportunities in AI and automation to enhance service delivery and operational efficiency [56][57] Additional Insights - Kyndryl has invested heavily in building a skilled workforce, with approximately 40,000 credentialed cloud experts [33] - The company is actively engaging in AI initiatives, including partnerships to help clients leverage generative AI technologies [56][57] This summary encapsulates the key insights and strategic direction of Kyndryl as discussed in the conference, highlighting its growth, market positioning, and future opportunities.

Kyndryl Distributed Cloud services utilizing the Microsoft adaptive cloud approach help businesses streamline cloud operations with customized solutions NEW YORK, May 13, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced the expansion of its Kyndryl Distributed Cloud capabilities utilizing the AI-powered Microsoft adaptive cloud approach. Designed to help customers innovate, modernize and simplify their business operations, these ...

"Kyndryl is honored to be recognized as a Leader in hybrid IT modernization, which we believe acknowledges our expertise and the value we bring to customers," said Nicolas Sekkaki, Global Cloud Practice Leader at Kyndryl. "As the growing complexity of technology environments hinders the ability to drive modernization initiatives, organizations increasingly need support in transforming their IT. With our deep expertise and thousands of highly skilled professionals, we can help customers improve operational e ...

Company Overview - Kyndryl Holdings, Inc. is a leading provider of mission-critical enterprise technology services, offering advisory, implementation, and managed service capabilities to thousands of customers in over 60 countries [3] - The company is recognized as the world's largest IT infrastructure services provider, responsible for designing, building, managing, and modernizing complex information systems [3] Upcoming Event - Kyndryl's Chairman and CEO Martin Schroeter, along with CFO David Wyshner, will speak at the J.P. Morgan Global Technology, Media and Communications Conference on May 13, 2025, at 10:10 a.m. ET [1] - The discussion will cover information regarding the company's business and financial performance [1] Investor Relations - A live webcast of the event will be available on Kyndryl's investor relations website, with a replay accessible approximately 24 hours after the live presentation [2]

Leadership Changes - Kyndryl announced a leadership rotation in Delivery, Practice, and Country roles to enhance its mission-critical enterprise technology services [1] - Xerxes Cooper appointed as Global Leader of Kyndryl Delivery, previously grew signings and improved profitability in Strategic Markets [2] - Petra Goude named President of Kyndryl Strategic Markets, previously led digital transformation initiatives in Core Enterprise and zCloud practice [3] - Jamie Rutledge becomes President of Kyndryl U.S., previously developed Kyndryl Bridge and led the Advanced Delivery initiative [4] - Hassan Zamat appointed Global Practice Leader for Core Enterprise and zCloud, previously led Accounts initiative impacting Kyndryl's transformation [5] Strategic Focus - The leadership changes are aimed at executing Kyndryl's 3A's strategy, focusing on customer success and profitable growth [6] - Key growth initiatives include collaboration with Alliance partners and modernization of technology environments using GenAI and Agentic AI [6]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported signings growth of 48% in constant currency, totaling over $18 billion [6] - Adjusted pretax income increased by $317 million to $482 million, with adjusted free cash flow rising by 53% to $446 million [6][27] - The fourth quarter revenue reached $3.8 billion, reflecting a 1.3% year-over-year increase in constant currency [22] Business Line Data and Key Metrics Changes - Kindrel Consult's revenue grew by 45% in the fourth quarter and 50% in signings for fiscal year 2025, accounting for 22% of total signings [23][15] - Hyperscaler-related revenue more than doubled to $1.2 billion for the year, significantly exceeding the target of $1 billion [25][7] - The company achieved $900 million in annualized savings from its accounts initiative, surpassing its target for the year [26] Market Data and Key Metrics Changes - The company secured 55 contracts valued over $50 million in fiscal year 2025, with nearly half exceeding $100 million [10] - The signings growth was broad-based across various geographies and vertical markets, indicating strong demand for services [9] - The revenue book-to-bill ratio remained above one, suggesting future revenue growth from committed contracts [10] Company Strategy and Development Direction - The company is focused on leveraging its capabilities, partnerships, and innovation to drive sustainable growth [5] - The 3A initiatives have transitioned from turnaround drivers to pillars of profitable growth [7] - The company aims to address secular IT trends such as cloud migration, hybrid IT environments, and cybersecurity risks [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties, citing the essential nature of its services [20][19] - The outlook for fiscal year 2026 includes expectations for substantial earnings and cash flow growth, with a target of at least $725 million in adjusted pretax income [18][33] - Management highlighted the importance of continued investment in innovation and capabilities to maintain growth momentum [45] Other Important Information - The company plans to balance capital allocation between organic growth investments and share repurchase programs [73] - The fiscal year 2026 outlook anticipates a 1% revenue growth in constant currency, with hyperscaler-related revenue expected to reach $1.8 billion [32][33] - The company maintains a strong liquidity position with nearly $5 billion available at quarter-end [30] Q&A Session Summary Question: Accomplishments in 2025 and positioning for 2026 - Management reflected on the successful execution of their strategy and expressed confidence in their ability to control their own destiny moving forward [42][45] Question: Progress with focus accounts - Management indicated they are approximately 75% through their focus accounts, having achieved 90% of targeted savings [50][48] Question: Book-to-bill ratio maintenance - Management confirmed expectations to maintain a book-to-bill ratio above one, driven by strong performance in consult and hyperscaler-related services [55] Question: Revenue growth guidance - Management explained that while signings growth was strong, they are not relying solely on revenue growth to achieve profit improvement, emphasizing the importance of backlog [66][69] Question: Impact of macro uncertainties on strategic accounts - Management noted that their services are essential for productivity, which tends to be a tailwind during uncertain macro conditions [81][84] Question: Role of Kindle Bridge in macro conditions - Management affirmed that Kindle Bridge can help uncover unused resources and provide leverage in uncertain macro conditions [86]