Kyndryl (US:KD) ZACKSยท2025-11-04 23:31Core Insights - Kyndryl Holdings, Inc. reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and showing a significant increase from $0.01 per share a year ago, resulting in an earnings surprise of +8.57% [1][2] - The company generated revenues of $3.72 billion for the quarter ended September 2025, which was 2.49% below the Zacks Consensus Estimate and a decrease from $3.77 billion in the same quarter last year [2] - Kyndryl's stock has underperformed the market, losing approximately 16.9% year-to-date compared to the S&P 500's gain of 16.5% [3][4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.69, with expected revenues of $4.01 billion, and for the current fiscal year, the consensus EPS is $2.18 on revenues of $15.65 billion [7] - The trend of estimate revisions for Kyndryl was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Technology Services industry, to which Kyndryl belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of Kyndryl's stock may be influenced by the overall industry outlook, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1 [8]