Core Insights - Kyndryl Holdings, Inc. reported strong signings growth and significant margin expansion in the third quarter of fiscal year 2025, driven by Kyndryl Consult, Kyndryl Bridge, and alliances with hyperscalers [2][6] - The company raised its full-year outlook for adjusted earnings and adjusted free cash flow, expecting constant-currency revenue growth in the fourth quarter [2][11] Financial Performance - Kyndryl reported revenues of $3.74 billion for the third quarter, a year-over-year decline of 5% and 3% in constant currency [4][9] - The company achieved pretax income of $258 million and net income of $215 million, compared to a net loss of $12 million in the prior-year period [4][9] - Adjusted pretax income was $160 million, a 154% increase from $63 million in the prior-year period [5][9] - Adjusted EBITDA was $704 million, reflecting a 14% year-over-year increase [5][9] Signings and Growth Initiatives - Total signings for the quarter were $4.1 billion, representing a year-over-year increase of 10% on a reported basis and 12% in constant currency [6][41] - Kyndryl's three-A initiatives contributed to strong signings growth, with Kyndryl Consult revenues growing 26% year-over-year [7][11] - The company initiated a $300 million share repurchase program, indicating confidence in future growth [3][11] Strategic Developments - Kyndryl recognized $300 million in revenue tied to cloud hyperscaler alliances, positioning the company to exceed its hyperscaler revenue target of nearly $1 billion for fiscal year 2025 [10] - The AI-enabled Kyndryl Bridge operating platform has enhanced service delivery and created additional revenue opportunities, generating annualized savings of approximately $725 million [10] Outlook - Kyndryl expects to deliver constant-currency revenue growth of approximately 2% in the fourth quarter of fiscal year 2025 [11] - The company aims to triple adjusted free cash flow and more than double adjusted pretax earnings over the next three years [3]

Core Points - Kyndryl Holdings, Inc. (KD) closed at $38.42, reflecting a +1.29% change from the previous session, outperforming the S&P 500's daily gain of 0.92% [1] - Over the past month, KD shares have increased by 9.85%, surpassing the Business Services sector's gain of 2.44% and the S&P 500's gain of 0.81% [1] Earnings Performance - Kyndryl is set to release earnings on February 3, 2025, with an anticipated EPS of $0.41, representing a 920% increase year-over-year [2] - Revenue is forecasted at $3.82 billion, indicating a 2.87% decline compared to the same quarter last year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $1.14 per share and revenue of $15.26 billion, reflecting shifts of +1136.36% and -4.93% respectively from the previous year [3] - Recent changes to analyst estimates may indicate shifting near-term business trends, with positive revisions seen as a favorable sign for the company's outlook [3] Valuation Metrics - Kyndryl's Forward P/E ratio stands at 33.17, higher than the industry average of 23.5, suggesting the company is trading at a premium [6] - The PEG ratio is currently at 6.63, compared to the Technology Services industry's average PEG ratio of 1.53 [7] Industry Ranking - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 87, placing it in the top 35% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Kyndryl Holdings, Inc. will announce its financial results for the third quarter of its 2025 fiscal year on February 3, 2025, followed by an earnings call on February 4, 2025 [1]. Group 1 - The earnings results will cover the quarter ended December 31, 2024 [1]. - The earnings call will be hosted by Chairman and CEO Martin Schroeter and CFO David Wyshner at 8:30 a.m. ET [1]. - A live webcast of the earnings call will be available on Kyndryl's investor relations website [2]. Group 2 - Kyndryl is recognized as the world's largest IT infrastructure services provider, operating in over 60 countries [3]. - The company serves thousands of enterprise customers and focuses on designing, building, managing, and modernizing critical information systems [3].

The latest trading session saw Kyndryl Holdings, Inc. (KD) ending at $34.41, denoting a -0.29% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq gained 0.98%.The company's stock has climbed by 4.42% in the past month, exceeding the Business Services sector's gain of 0.33% and the S&P 500's gain of 0.34%.Analysts and investors alike will be keeping a close eye on the performance of Kyndr ...

Company Performance - Kyndryl Holdings, Inc. closed at $35.39, reflecting a -0.78% change from the previous session, underperforming the S&P 500 which lost 0.39% [1] - The stock has increased by 27.12% over the past month, outperforming the Business Services sector's gain of 3% and the S&P 500's gain of 3.6% [1] Earnings Forecast - The upcoming earnings release is anticipated, with a forecasted EPS of $0.41, representing a 920% increase from the same quarter last year [2] - Revenue is expected to be $3.82 billion, indicating a 2.87% decrease compared to the same quarter of the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $1.22 per share, reflecting a +1209.09% change from the prior year, while revenue is estimated at $15.26 billion, showing a -4.93% change [3] Analyst Projections - Recent shifts in analyst projections should be monitored as they indicate changing near-term business trends, with positive estimate revisions seen as a favorable sign for the company's outlook [4] Zacks Rank and Valuation - Kyndryl Holdings, Inc. currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [6] - The company has a Forward P/E ratio of 29.29, which is a premium compared to the industry average of 28.14, and a PEG ratio of 5.86, compared to the industry average of 1.59 [7] Industry Context - The Technology Services industry, part of the Business Services sector, has a Zacks Industry Rank of 73, placing it in the top 30% of over 250 industries [8]

Kyndryl deepens its thought leadership at the intersection of business and technology by offering perspectives from eminent voices to guide organizations competing in an age of transformationNEW YORK, Dec. 17, 2024 /PRNewswire/ -- Kyndryl (NYSE: KD), the world's largest IT infrastructure services provider, today launched The Kyndryl Institute as a convener of original ideas and insights that introduce fresh perspectives on innovation at the intersection of technology and business.In today's fast-paced digit ...

Group 1: Brokerage Recommendations - Kyndryl Holdings, Inc. has an average brokerage recommendation (ABR) of 1.33, indicating a consensus between Strong Buy and Buy, with 83.3% of recommendations being Strong Buy from six brokerage firms [2][4] - The ABR should not be the sole basis for investment decisions, as studies show limited success of brokerage recommendations in identifying stocks with the best price increase potential [4][9] - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, often issuing five "Strong Buy" recommendations for every "Strong Sell" [5][9] Group 2: Zacks Rank vs. ABR - The Zacks Rank is a proprietary stock rating tool that classifies stocks into five groups based on earnings estimate revisions, providing a more reliable indicator of near-term price performance compared to ABR [7][10] - Unlike ABR, which may not be up-to-date, the Zacks Rank reflects timely earnings estimate revisions, making it a more effective tool for predicting future stock prices [11] - The Zacks Consensus Estimate for Kyndryl Holdings, Inc. has remained unchanged at $1.22, suggesting that analysts' steady views may lead to performance in line with the broader market [12][13] Group 3: Current Investment Outlook - Kyndryl Holdings, Inc. currently holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [13]

Company Has Earned Top Honors in 60 Global Employer Awards NEW YORK, Dec. 11, 2024 /PRNewswire/ -- Kyndryl (NYSE: KD), the world's largest IT infrastructure services provider, is proud to be Certified™ by Great Place To Work® in Czechia, France, Hungary, India, Japan, Poland, the United Kingdom, and the United States. The prestigious award is based entirely on what current employees say about their experience working at Kyndryl. Great Place To Work® is the global authority on workplace culture, employee exp ...

Expansion of partnership solutions aimed at enterprise IT data center growth and modernization to support strategic digital transformation initiativesNEW YORK and ESPOO, Finland, Dec. 4, 2024 /PRNewswire/ -- Kyndryl (NYSE: KD), the world's largest IT infrastructure services provider, and Nokia today announced an expansion of their partnership portfolio to offer advanced data center networking solutions and services to global enterprises.By combining Kyndryl's enterprise knowledge and experience in designing ...

Kyndryl Holdings, Inc. (NYSE: KD ) is a multinational IT services and infrastructure solutions provider that spun off from IBM in late 2021. The company helps clients across a wide array of industries to modernize their IT systems andI specialize in analyzing individual stocks. With a strong educational background in both finance and economics, I’ve developed a deep fascination with the stock market and the potential it offers to investors at all levels. I keep a close watch on market trends, particularly i ...