Commitment builds on Kyndryl's existing presence in the country and advances AI initiatives, while fostering the next generation of technology talent BENGALURU, India, Aug. 21, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission- critical enterprise technology services, today announced its growth plans in India with a focus on modernizing essential technology infrastructure for leading organizations. As part of this $2.25 billion commitment over the next three years, Kyndryl is focusing o ...

Core Insights - Kyndryl reported steady progress in key growth areas, including Kyndryl Consult and hyperscaler-related activities, contributing to innovation and growth opportunities [2][3] - The company reaffirmed its fiscal 2026 outlook, targeting adjusted pretax income of at least $725 million, a year-over-year increase of at least $243 million [8] Financial Performance - For the first quarter ended June 30, 2025, Kyndryl reported revenues of $3.74 billion, a slight increase year-over-year, but down 2.6% in constant currency [3][9] - Pretax income was $92 million, a 44% increase from $64 million in the prior-year period, while net income rose to $56 million, or $0.23 per diluted share, compared to $11 million, or $0.05 per diluted share, in the prior-year period [3][9] - Adjusted pretax income was $128 million, a 39% increase from $92 million in the prior-year period, and adjusted net income was $90 million, or $0.37 per diluted share, compared to $31 million, or $0.13 per diluted share, in the prior-year period [4][9] Operational Highlights - Kyndryl's signings for the trailing twelve months reached $18.3 billion, representing a year-over-year increase of 43% [5][9] - Hyperscaler-related revenue generated $400 million in the first quarter, an 86% year-over-year increase, with a target of $1.8 billion in fiscal 2026 [10] - Kyndryl Consult experienced a 30% year-over-year revenue growth in the first quarter, with signings growing 36% over the last twelve months [10] Strategic Initiatives - The company is focused on its three-A initiatives: Alliances, Advanced Delivery, and Accounts, which are driving earnings growth and margin expansion [4][10] - Kyndryl launched the Agentic AI Framework in July, enabling customers to adopt and scale AI solutions across various IT settings [10] Shareholder Returns - Kyndryl repurchased 1.8 million shares at a cost of $65 million in the first quarter, as part of a $300 million share repurchase program authorized in November 2024 [10]

Core Insights - Kyndryl has been certified as an Elite Launch Partner for AWS Transform for Mainframe, enabling the integration and migration of mainframe applications to AWS Cloud [1][2] - The company is launching new advisory and implementation services that leverage AWS's agentic AI capabilities to facilitate the modernization of mainframe applications [2][4] Kyndryl's Services and Approach - Kyndryl is applying its consulting expertise to streamline the application software development lifecycle, utilizing platform engineering and best practices for quick provisioning and deployment on AWS [3] - The use of AWS Transform is projected to reduce modernization and migration project timelines by approximately one-third, allowing customers to unlock value from their mainframe data and applications more quickly [4][5] Collaboration with AWS - A multi-year strategic collaboration agreement has been signed between Kyndryl and AWS to accelerate customer adoption of generative AI solutions [2] - Kyndryl's AI-powered integration platform, Kyndryl Bridge, consolidates cloud and mainframe automation, helping customers identify applications suitable for modernization [5] Market Trends and Customer Insights - According to Kyndryl's 2024 Mainframe Modernization Survey, 86% of respondents are deploying or planning to deploy AI to accelerate mainframe modernization, with nearly half aiming to use generative AI for actionable insights [6]

Kyndryl (KD) FY Conference Summary Company Overview - **Company**: Kyndryl (KD) - **Industry**: IT Services - **Date of Conference**: May 13, 2025 Key Points Company Performance and Strategy - Kyndryl has achieved positive revenue growth for the last quarter, marking a significant turnaround since becoming an independent company three and a half years ago [5][12] - The company has focused on a strategy termed the "three A's": alliances with major cloud providers (Microsoft, Google, AWS), advanced delivery improvements, and reimagining focus accounts to create sustainable relationships [9][10] - Kyndryl has improved profitability and cash flow significantly, with guidance for continued improvement in the current year [12][13] Revenue Growth and Financial Guidance - Kyndryl aims for mid-single-digit revenue growth in the medium term, which is deemed sufficient to drive substantial cash flow and profit growth [15][16] - The company reported a book-to-bill ratio of over 1 for the last year, indicating strong demand and a healthy backlog [17][27] - Kyndryl's signings grew by 46% year-over-year, showcasing broad-based strength across various geographies and verticals [27][28] Business Model and Market Position - Kyndryl's business model is characterized as mission-critical and non-discretionary, providing a level of insulation from economic cycles [20][21] - The company has established long-term contracts with clients, which helps maintain revenue stability [20][21] - Kyndryl is positioned to capture market share from competitors by leveraging its expertise and partnerships with hyperscalers [22][31] Consulting and Managed Services - Kyndryl Consult has grown from 10% to over 20% of total revenue, with expectations for double-digit growth [39] - Managed services have been declining but are expected to stabilize and return to growth by fiscal 2027 [40] Relationship with IBM - Kyndryl's software costs from IBM are expected to transition to a more standard pricing model by the end of the calendar year, reducing the financial burden significantly [41][42] - The relationship with IBM remains strong, with collaborative efforts to meet customer needs [44] Gross Margin and Profitability - Kyndryl reported a gross profit book-to-bill ratio of 1.5, indicating that the gross profit added to the backlog is significantly higher than the current churn rate [45][46] - The company anticipates continued gross margin expansion, with a focus on operational efficiencies [52] Future Outlook - Kyndryl is optimistic about its growth trajectory, emphasizing the importance of being a profitable and cash-generating company [58] - The company is exploring opportunities in AI and automation to enhance service delivery and operational efficiency [56][57] Additional Insights - Kyndryl has invested heavily in building a skilled workforce, with approximately 40,000 credentialed cloud experts [33] - The company is actively engaging in AI initiatives, including partnerships to help clients leverage generative AI technologies [56][57] This summary encapsulates the key insights and strategic direction of Kyndryl as discussed in the conference, highlighting its growth, market positioning, and future opportunities.

Leadership Changes - Kyndryl announced a leadership rotation in Delivery, Practice, and Country roles to enhance its mission-critical enterprise technology services [1] - Xerxes Cooper appointed as Global Leader of Kyndryl Delivery, previously grew signings and improved profitability in Strategic Markets [2] - Petra Goude named President of Kyndryl Strategic Markets, previously led digital transformation initiatives in Core Enterprise and zCloud practice [3] - Jamie Rutledge becomes President of Kyndryl U.S., previously developed Kyndryl Bridge and led the Advanced Delivery initiative [4] - Hassan Zamat appointed Global Practice Leader for Core Enterprise and zCloud, previously led Accounts initiative impacting Kyndryl's transformation [5] Strategic Focus - The leadership changes are aimed at executing Kyndryl's 3A's strategy, focusing on customer success and profitable growth [6] - Key growth initiatives include collaboration with Alliance partners and modernization of technology environments using GenAI and Agentic AI [6]

Fourth Quarter 2025 Earnings May 8, 2025 Disclaimers Forward-looking statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "objectives," "opportunity," "plan," "position," "predict," "project," "should," "seek," "target," "will," "would" and other similar words or expres ...