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Why Kyndryl Holdings Stock Rocketed 10% Higher This Week
KDKyndryl (KD) The Motley Fool·2025-02-07 23:29

Core Insights - Kyndryl Holdings experienced a significant share price increase of over 10% during the week, driven by positive quarterly results [1] Financial Performance - For Q3 of fiscal 2025, Kyndryl reported revenue of 3.74billion,adecreasefromnearly3.74 billion, a decrease from nearly 3.94 billion in Q3 of fiscal 2024, and below the consensus estimate of 3.83billion[2]−Thecompanyachievedanon−GAAPnetincomeof3.83 billion [2] - The company achieved a non-GAAP net income of 124 million, compared to a loss of 11millioninthepreviousyear,translatingto11 million in the previous year, translating to 0.51 per share, exceeding the average projection of 0.43[3]GrowthDrivers−Kyndrylattributeditsimprovedperformanceto"strongsigningsgrowth,"particularlynotingadouble−digitrevenueincreasefromitsKyndrylConsultunit[4]GuidanceUpdates−Kyndrylraiseditsguidanceforfiscal2025,projectingapre−taxincomeofatleast0.43 [3] Growth Drivers - Kyndryl attributed its improved performance to "strong signings growth," particularly noting a double-digit revenue increase from its Kyndryl Consult unit [4] Guidance Updates - Kyndryl raised its guidance for fiscal 2025, projecting a pre-tax income of at least 475 million, indicating a minimum year-over-year growth of 310million[5]−Theadjustedcashflowforecastwasincreasedtoapproximately310 million [5] - The adjusted cash flow forecast was increased to approximately 350 million, with revenue expected to rise by 2% on a constant-currency basis compared to fiscal 2024 [5]