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Kyndryl and VML Form Global Partnership to Unlock the Future of Customer Experience
Prnewswire· 2025-09-12 04:01
Core Insights - Kyndryl and VML have formed a partnership to enhance customer engagement through AI, data, and emerging technologies, aiming to create personalized experiences for brands [1][2][3] - The collaboration seeks to streamline the transformation of customer experiences by integrating Kyndryl's technology services with VML's creative solutions, addressing the evolving expectations of customers [2][3] Company Overview - Kyndryl is a leading provider of mission-critical enterprise technology services, operating in over 60 countries and focusing on IT infrastructure and data management [6] - VML is recognized for its innovative digital transformation services, working with major brands and celebrated for its award-winning campaigns [7] Partnership Details - The partnership combines Kyndryl's advisory and design services with VML's experience transformation expertise, enabling brands to unlock new ideas and improve customer interactions [2][3] - Kyndryl's AI-powered platform, Kyndryl Bridge, and VML's WPP Open operating system will facilitate real-time data utilization for enhanced customer experiences [2][3] Industry Challenges - Companies face challenges in integrating enterprise data and ensuring security while trying to leverage AI for personalized customer experiences [5] - The partnership aims to address these challenges by deploying expert teams to support businesses in navigating complex technology ecosystems [3][5] Use Cases - In financial services, the partnership will explore AI agents to enhance customer intelligence and personalized banking experiences [5] - In retail, Kyndryl and VML will assist brands in utilizing customer data for tailored engagements and improving security across omnichannel commerce [5]
Kyndryl Continues to Invest in India, with Plans to Spend $2.25 Billion over Three Years
Prnewswire· 2025-08-21 17:12
Core Viewpoint - Kyndryl is committing $2.25 billion over the next three years to enhance its presence in India, focusing on modernizing technology infrastructure and advancing AI initiatives while developing future-ready talent [1][4]. Group 1: Investment and Growth Plans - Kyndryl's investment aims to modernize essential technology infrastructure for leading organizations in India [1]. - The company plans to establish an AI Innovation Lab in Bengaluru to enhance its AI-powered consulting services [6]. - Kyndryl's commitment includes deepening engagement with the Government of India on AI initiatives and supporting digital training for approximately 200,000 citizens [5][10]. Group 2: Collaboration with Government - Kyndryl's CEO met with Indian Prime Minister Narendra Modi to discuss expansion plans and AI initiatives [2][3]. - The company is signing a Memorandum of Understanding with the Ministry of Commerce & Industry to support the Ease of Doing Business initiative through its AI platform, Kyndryl Bridge [9]. Group 3: Talent Development and Skilling - Kyndryl is focused on addressing the rising demand for advanced digital skills, committing to upskill its workforce in AI, cybersecurity, and other technologies [10]. - The company plans to establish offices in Tier 2 and Tier 3 cities to tap into high-potential talent and strengthen regional innovation ecosystems [10]. - Kyndryl aims to provide resources to train 200,000 beneficiaries in India through its social impact initiatives and the Kyndryl Skilling program [12]. Group 4: AI and Digital Infrastructure - Kyndryl's AI Innovation Lab will focus on hiring and training professionals skilled in AI, data, cloud, and platform engineering [6]. - The company is contributing enterprise-grade AI capabilities to support India's digital public infrastructure and governance transformation [7]. - Recent research indicates that India leads in AI workforce readiness, with 37% of business leaders confident in their teams' preparedness to adopt AI, surpassing the global average of 29% [11].
Could This Lesser-Known AI Stock Be the Next Big Winner?
The Motley Fool· 2025-08-15 09:00
Group 1: AI Market Overview - The focus on familiar AI stocks like Nvidia and hyperscalers may overlook less popular companies that could offer market-beating returns [1][2] - Data centers are critical for AI development, with Nvidia reporting data center revenue of $39.1 billion, a 73% year-over-year increase [3] Group 2: Kyndryl's Position in the Market - Kyndryl is positioned as the world's largest IT infrastructure services provider, benefiting from the growth of hyperscalers [5] - The company reported $1.4 billion in hyperscaler-related revenue for the 12-month period ending June 2025, a 119% increase from the previous year [7] - Kyndryl's total revenue declined from $16.1 billion in 2024 to $15.1 billion in 2025, indicating a strategic pivot towards hyperscaler opportunities [8] Group 3: Kyndryl's Partnerships and Expertise - Kyndryl has established partnerships with leading AI companies, including a collaboration with Nvidia to enhance generative AI solutions [10] - The company is also working with Amazon to modernize mainframe applications for AWS and partners with cybersecurity firms to protect against cyber threats [11] Group 4: Investment Potential - Kyndryl's stock may provide a market-beating performance due to its exposure to hyperscalers and other AI-related businesses [12] - Currently trading at 13.7 times forward earnings, Kyndryl stock may be an attractive option for patient investors [13]
KYNDRYL REPORTS FIRST QUARTER FISCAL 2026 RESULTS
Prnewswire· 2025-08-04 20:15
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]
Kyndryl Set to Report Q1 Earnings: What's in the Offing?
ZACKS· 2025-07-30 15:36
Core Viewpoint - Kyndryl (KD) is set to report its first-quarter fiscal 2026 results on August 4, with expectations of revenue growth driven by consulting services and cost-cutting initiatives [1][11]. Revenue Expectations - The Zacks Consensus Estimate for Kyndryl's revenues is $3.8 billion, reflecting a 1.6% year-over-year increase, primarily attributed to strong performance in Kyndryl Consult [2][11]. - The growth is supported by ongoing demand in security and resiliency, as well as capabilities in data discovery, data integrity, AI assessment, and governance programs [2]. Strategic Alliances and Competitive Edge - The expansion of Kyndryl's alliances with hyperscalers and leading technology providers, along with the advantages provided by AI-powered Kyndryl Bridge operating platforms, is expected to enhance revenue [3]. Earnings Projections - The consensus estimate for earnings is 37 cents per share, indicating a more than 100% increase from the same quarter last year, driven by strong margins and cost reductions from advanced delivery initiatives [4][11]. Earnings Prediction Model - Current analysis indicates that Kyndryl does not have a conclusive prediction for an earnings beat, with an Earnings ESP of -4.05% and a Zacks Rank of 2 (Buy) [5].
Kyndryl launches mainframe modernization services leveraging AWS's agentic AI capabilities
Prnewswire· 2025-06-10 13:00
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 Transcript
2025-05-13 15:10
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.
Kyndryl Announces Operational Leadership Rotation
Prnewswire· 2025-05-09 15:42
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]
Kyndryl (KD) - 2025 Q4 - Earnings Call Presentation
2025-05-08 12:40
Financial Performance & Growth - Kyndryl's FY25 signings increased by 48% year-over-year in constant currency, reaching $182 billion[12, 15] - Adjusted pretax income for FY25 was $482 million, up $317 million year-over-year[12] - Adjusted free cash flow for FY25 was $446 million[12] - Kyndryl Consult revenue grew by 29% in constant currency, reaching $30 billion[25] - The company projects at least $725 million in adjusted pretax income for fiscal year 2026, an increase of at least $243 million year-over-year[51] Strategic Initiatives & Market Position - Kyndryl is positioned at the nexus of key secular trends including artificial intelligence, cloud migration, and cybersecurity risks[14] - The company is seeing demand across a range of geographies, verticals, and practices, with 55 large contract signings totaling $10 billion in fiscal year 2025[18] - Alliances generated $12 billion in hyperscaler revenue, more than double the prior year[12] - Advanced Delivery achieved $775 million in annualized savings in Q4, exceeding the FY25 target[12] - Accounts generated $900 million in annualized profit in Q4, exceeding the FY25 target[12]