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 3.74billionforthethirdquarter,ayear−over−yeardeclineof5258 million and net income of 215million,comparedtoanetlossof12 million in the prior-year period [4][9] - Adjusted pretax income was 160million,a15463 million in the prior-year period [5][9] - Adjusted EBITDA was 704million,reflectinga144.1 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 300millionsharerepurchaseprogram,indicatingconfidenceinfuturegrowth[3][11]StrategicDevelopments−Kyndrylrecognized300 million in revenue tied to cloud hyperscaler alliances, positioning the company to exceed its hyperscaler revenue target of nearly 1billionforfiscalyear2025[10]−TheAI−enabledKyndrylBridgeoperatingplatformhasenhancedservicedeliveryandcreatedadditionalrevenueopportunities,generatingannualizedsavingsofapproximately725 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]
Kyndryl (KD) Prnewswire·2025-02-03 21:15