Kyndryl (US:KD) Prnewswireยท2025-02-03 21:15Core 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]