NEW YORK, Sept. 27, 2024 /PRNewswire/ -- Kyndryl (NYSE: KD), the world's largest IT infrastructure services provider, today released its fiscal year 2024 Corporate Citizenship Report. Kyndryl's report demonstrates the Company's advancements in driving sustainable and continued progress for its stakeholders through innovation, environmental stewardship and social impact. "Kyndryl set ambitious goals for building our sustainability practice, supporting our people and communities, and upholding ethical governa ...

The most recent trading session ended with Kyndryl Holdings, Inc. (KD) standing at $23.01, reflecting a +1.37% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.6%. Shares of the company have depreciated by 2.2% over the course of the past month, underperforming the Business Services sector's gain of 4.05% and the S&P 500's gain of 1.71%. The upcoming earnings re ...

Kyndryl Holdings, Inc. (KD) closed the most recent trading day at $23.88, moving +0.55% from the previous trading session. This change outpaced the S&P 500's 0.19% loss on the day. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.36%. Prior to today's trading, shares of the company had gained 1.8% over the past month. This has lagged the Business Services sector's gain of 6.7% and the S&P 500's gain of 2.06% in that time. The investment community will be paying close ...

Kyndryl Holdings, Inc. (KD) closed at $22.98 in the latest trading session, marking a -0.65% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.03% for the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.2%. Shares of the company have depreciated by 1.74% over the course of the past month, underperforming the Business Services sector's gain of 4.61% and the S&P 500's gain of 1.54%. The investment community will be paying close attention t ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? 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, I ...

Respondents also report up to 225% return on investment on their mainframe transformation initiatives in one year Mainframes continue to play a critical role in hybrid IT environments NEW YORK, Sept. 10, 2024 /PRNewswire/ -- Kyndryl (NYSE: KD), the world's largest IT infrastructure services provider, today released the results of its second annual State of Mainframe Modernization Survey, declaring that 2024 is the year of AI adoption on the mainframe. The survey also reaffirmed that while modernization proj ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? 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, I ...

Revenue and Financial Performance - Revenue for the three months ended June 30, 2024 was $3.7 billion, a decline of 11% compared to the prior-year period[103] - Revenue for the three months ended June 30, 2024 was $3.739 billion, a decrease of 11% compared to $4.193 billion in the same period in 2023[114] - United States revenue decreased 15% to $986 million, driven by efforts to reduce low-margin revenues[108] - Japan revenue decreased 7% to $569 million, with a 6% increase in constant currency[110] - Principal Markets revenue decreased 5% to $1.3 billion, but adjusted EBITDA increased 60% to $241 million[111] - Strategic Markets revenue decreased 15% to $869 million, with adjusted EBITDA declining 20% to $120 million[112] Net Income and Adjusted EBITDA - Net income improved to $11 million, a $152 million increase from the prior-year period[103] - Adjusted EBITDA for the three months ended June 30, 2024 was $556 million, a decline of 9% compared to the prior-year period[106] - Corporate and other had an adjusted EBITDA loss of $21 million, compared to a loss of $24 million in the prior-year period[113] Cost Management and Efficiency - Cost of services decreased to 78.5% of revenue in Q2 2024 from 82.3% in Q2 2023, driven by lower depreciation expenses and increased operating efficiencies[114] - Workforce rebalancing charges were $36 million in Q2 2024, a decrease of 38% from $58 million in Q2 2023[114][116] - The company expects workforce rebalancing and site-rationalization activities to reduce costs by over $200 million in fiscal year 2026[117] Cash Flow and Financial Position - Net cash used in operating activities improved to $48 million in Q2 2024 from $173 million in Q2 2023, driven by increased net income and better receivables collection[124] - Total assets decreased by $427 million to $10.2 billion as of June 30, 2024, primarily due to a $284 million decrease in cash and cash equivalents[121] - Gross proceeds from receivables sold to third parties were $0.8 billion in Q2 2024, down from $1.2 billion in Q2 2023[134] Debt and Financing - The company completed a $500 million senior unsecured notes offering in February 2024 with a 6.35% interest rate due 2034[130] - The revolving credit facility of $3.15 billion remains undrawn as of June 30, 2024, with the agreement expiring in October 2026[131] - The company initiated a supplier financing program with a third-party financial institution, offering suppliers early payment at a discounted amount, with average invoice terms of 90 to 120 days[135] - The company's obligations under the supplier financing program are recognized as accounts payable, with immaterial outstanding obligations as of June 30, 2024, and March 31, 2024[135] Risks and Challenges - Forward-looking statements in the report include risks such as failure to attract or retain customers, competition, and impacts from economic, political, and public health conditions[137] - Risks related to cybersecurity, data governance, and privacy are highlighted as potential challenges for the company[137] - The company faces risks from currency fluctuations, pension plans, and changes in market liquidity conditions[138] - Legal proceedings, tax matters, and environmental issues are identified as additional risks[138] - The company's ability to manage acquisitions and dispositions, including integration challenges and higher debt levels, is a noted risk[137] - Risks related to the company's spin-off from IBM and deficiencies in information technology controls are mentioned[138] Accounting and Reporting - No changes were made to the company's critical accounting policies and estimates as described in the Annual Report on Form 10-K for the fiscal year ended March 31, 2024[136] - The company routinely posts material information on its corporate and Investor Relations websites, which is not incorporated into SEC filings[140] Business Development and Signings - Total signings increased by 11% to $3.1 billion in Q2 2024 compared to $2.8 billion in Q2 2023[127]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 totaled $3.7 billion, reflecting an 8% decline in constant currency, primarily due to the intentional exit from low-margin revenue streams [20][21] - Adjusted EBITDA was $556 million, with an adjusted EBITDA margin of 14.9%, an increase of 30 basis points year-over-year [22] - Adjusted pretax income grew 96% to $92 million, indicating strong operational execution [22][24] - The updated forecast for fiscal 2025 includes adjusted pretax income of at least $460 million, reflecting a year-over-year increase of at least $295 million [16][29] Business Line Data and Key Metrics Changes - Kyndryl Consult revenues grew 14% year-over-year in constant currency, accounting for 17% of total revenue [21][9] - Kyndryl Consult signings increased by 49% in constant currency, indicating strong demand for advisory services [21][9] - Hyperscaler-related revenue reached $210 million in Q1, on track to deliver nearly $1 billion for the year, doubling the fiscal 2024 total [23][20] Market Data and Key Metrics Changes - The company is experiencing growing demand for services due to increased cyber regulations, particularly in the EU [9] - The strength in Kyndryl Consult is attributed to the company's expertise in running and transforming IT estates, which is resonating with customers [5][6] Company Strategy and Development Direction - The company is focused on driving growth through Kyndryl Consult and Kyndryl Bridge, leveraging AI and automation to enhance service delivery [4][10] - The strategic emphasis is on shedding low-margin components of revenue and expanding relationships with alliance partners like Microsoft, Google, AWS, and SAP [9][15] - The company aims to pivot to growth in fiscal 2025, with expectations of returning to revenue growth in the fourth quarter [17][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving high single-digit adjusted pretax margins by fiscal 2027, supported by a shift towards higher-margin contracts [16][40] - The company is well-positioned to help customers optimize their IT environments and prepare for future investments as macroeconomic conditions improve [56][58] - Management highlighted the importance of bridging the gap between business line leaders and IT organizations to facilitate AI adoption [60][61] Other Important Information - The company plans to host its first post-spin Investor Day on November 21, 2024, to discuss future strategies and performance [18] - The company maintains a strong liquidity position with a cash balance of $1.3 billion and nearly $4.5 billion in total liquidity [27][28] Q&A Session Summary Question: Trends in signings composition - Management noted a consistent growth rate in Kyndryl Consult signings, indicating a shift towards advisory services while still maintaining substantial management run business [32][33] Question: Appetite for larger acquisitions - Management reiterated that acquisitions are not necessary for growth, focusing instead on small tuck-in acquisitions that complement existing expertise [35][36] Question: Confidence in margin growth - Confidence in margin growth is supported by consistent performance in signing contracts with high projected margins and the impact of the 3A's initiatives [38][39] Question: Drivers of Kyndryl Consult growth - Management attributed the 49% growth in Kyndryl Consult bookings to the company's unique expertise in run and transform capabilities, which are essential for customers [48][49] Question: Capital returns timeline - Management clarified that while $1 billion in pretax income is a target, capital returns could begin before reaching that figure, depending on adjusted pretax income levels [54] Question: Impact of interest rate changes - Management indicated that a decrease in interest rates could benefit the company by enabling customers to invest more in IT infrastructure and services [56][57] Question: AI implementation readiness - Management discussed the importance of preparing IT infrastructures for AI, emphasizing the need for collaboration between business and IT leaders [60][61] Question: Kyndryl Consult's outperforming position - Management highlighted the combination of deep engineering knowledge, industry-standard skills, and innovative solutions as key factors in Kyndryl Consult's success [66][67]

Kyndryl Holdings, Inc. (KD) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 8.33%. A quarter ago, it was expected that this company would post a loss of $0.12 per share when it actually produced a loss of $0.01, delivering a surprise of 91.67%. Over the last four quarters, the comp ...