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KD

Kyndryl Holdings, Inc.

KD

Kyndryl Holdings, Inc. • NYSE
$25.83 ▲ 1.53% (+0.39)
Market Cap $5.97 B
52w High $44.20
52w Low $23.28
Dividend Yield 0%
P/E 15.11
Volume 1.03M
Outstanding Shares 231.15M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $3.721B ▼ $661M ▲ $68M ▼ 1.827% ▲ $0.29 ▼ $312M ▼
Q1-2026 $3.8B ▲ $640M ▼ $69M ▼ 1.816% ▼ $0.3 ▼ $444M ▼
Q4-2025 $3.744B $647M $215M 5.743% $0.93 $549M
Q3-2025 $3.744B ▼ $647M $215M ▲ 5.743% ▲ $0.93 ▲ $549M ▲
Q2-2025 $3.774B $647M $-43M -1.139% $-0.19 $263M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $1.786B ▲ $10.452B ▼ $9.12B ▼ $1.219B ▼
Q1-2026 $1.462B ▼ $11.495B ▲ $10.151B ▲ $1.234B ▲
Q4-2025 $1.786B ▲ $10.452B ▲ $9.12B ▲ $1.219B ▲
Q3-2025 $1.501B ▲ $9.925B ▼ $8.721B ▼ $1.094B ▲
Q2-2025 $1.325B $10.396B $9.224B $1.065B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $68M ▲ $145M ▲ $-122M ▼ $-140M ▲ $-135M ▲ $16M ▲
Q1-2026 $56M ▲ $-124M ▼ $-74M ▲ $-170M ▼ $-323M ▼ $-267M ▼
Q4-2025 $-45M ▼ $145M ▼ $-203M ▼ $-47M ▼ $-137M ▼ $-57M ▼
Q3-2025 $-12M ▲ $436M ▲ $-142M ▼ $-43M ▼ $279M ▲ $262M ▲
Q2-2025 $-142M $46M $-95M $-42M $-109M $-129M

Revenue by Products

Product Q3-2025Q4-2025Q1-2026Q2-2026
Japan
Japan
 $580.00M ▲$610.00M ▲$580.00M ▼$580.00M ▲
Principal Markets
Principal Markets
 $1.30Bn ▲$1.27Bn ▼$1.36Bn ▲$1.33Bn ▼
Strategic Markets
Strategic Markets
 $900.00M ▲$950.00M ▲$900.00M ▼$910.00M ▲
United States
United States
 $960.00M ▲$970.00M ▲$910.00M ▼$900.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Kyndryl’s income statement shows a company in transition but moving in a healthier direction. Sales have been drifting down each year, which likely reflects exiting older, low‑margin contracts and a maturing legacy business. The positive side is that profitability has improved steadily: gross profit has grown, operating results have swung from sizable losses to a solid profit, and net income has moved from deep losses to a modest profit. In plain terms, the company is now earning money on a smaller but higher‑quality revenue base. The key question going forward is whether it can stabilize or grow revenue in its newer focus areas while holding on to these margin gains.

Balance Sheet

Balance Sheet The balance sheet looks stable but not overly cushioned. Total assets have edged down over time, and the equity base has shrunk significantly, showing the impact of past losses and restructuring. Debt remains fairly high relative to equity, meaning the company is more leveraged than many would prefer, though it has started to trim debt slightly. Cash levels are reasonable for operations but not abundant when set against total borrowings. Overall, the financial foundation is solid enough for day‑to‑day needs, but there is less of a buffer if conditions become difficult, and continued attention to reducing leverage is an important watch point.

Cash Flow

Cash Flow Cash flow is a relative bright spot. The business has generally produced positive cash from operations, even in years when it reported accounting losses, and this operating cash has strengthened more recently. Free cash flow has improved from meaningfully negative in the early spin‑off period to clearly positive, suggesting better contract quality, tighter cost control, and more disciplined investment. Capital spending has been steady rather than aggressive, implying the company is investing to maintain and evolve its capabilities without overextending. The pattern points to a business that is becoming more self‑funding and less reliant on new borrowing.

Competitive Edge

Competitive Edge Kyndryl holds a strong but evolving competitive position. Its core advantage is deep experience running highly complex, mission‑critical IT systems for many of the world’s largest companies, often in heavily regulated industries. These environments are hard and risky to move, which creates switching costs and a natural moat. Since separating from IBM, Kyndryl has broadened its alliances with major cloud providers and security partners, allowing it to offer more flexible, modern solutions instead of being tied to a single technology stack. At the same time, it faces intense competition from global IT services firms and the big cloud platforms themselves. Its success depends on converting its legacy strength into leadership in hybrid cloud, automation, and consulting rather than just being seen as a traditional infrastructure outsourcer.

Innovation and R&D

Innovation and R&D Innovation is increasingly central to Kyndryl’s story, even though it is a services company rather than a classic product R&D shop. The flagship effort is Kyndryl Bridge, an AI‑enabled platform that gives customers a unified, data‑driven view of their IT landscape and automates many operational tasks. The company is also leaning heavily into AI for mainframe environments, using tools like AI Mentor for Z to modernize legacy systems instead of simply replacing them. Its co‑creation model, Kyndryl Vital, and its consulting arm are designed to embed innovation directly into customer projects rather than in separate labs. Acquisitions such as Skytap and deep partnerships with hyperscalers add to its toolkit. The opportunity is large, but execution risk is real: Kyndryl must show that these platforms and services can scale commercially and offset the gradual decline of older offerings.

Summary

Kyndryl is in the midst of a multi‑year overhaul from a legacy infrastructure outsourcer into a more modern, AI‑ and cloud‑focused services partner. Financially, the company has traded some revenue for much better profitability and cash generation, moving from heavy losses to modest profits and positive free cash flow. The balance sheet is adequate but thin on equity and relatively heavy on debt, which makes ongoing debt reduction and disciplined capital allocation important to monitor. Competitively, Kyndryl’s deep expertise in complex, mission‑critical systems and its relationships with large enterprises give it a real foothold, while expanded partnerships with leading cloud providers and a growing consulting arm aim to push it into higher‑value work. The main things to watch are: its ability to grow newer AI, automation, and hybrid cloud services fast enough to offset legacy headwinds; its success in turning platforms like Kyndryl Bridge into durable, differentiated offerings; and its progress in steadily strengthening the balance sheet. Overall, it is a transformation story with clear signs of operational improvement but still meaningful strategic and financial execution risks.

NEWS

November 24, 2025 · 9:01 AM UTC

Kyndryl Launches Agentic AI Framework and Services for the Mainframe

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November 20, 2025 · 12:01 AM UTC

Kyndryl Extends Partnership with Vodafone Idea Limited to Deliver Automated IT Operations and Delivery Transformation

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November 19, 2025 · 9:00 AM UTC

Kyndryl Announces Agentic AI Digital Trust to Support Governance of AI Agents at Scale

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November 18, 2025 · 9:00 AM UTC

Kyndryl and Microsoft Study Reveals That 78% of Leading Organizations Highlight IT as a Key Enabler of Environmental Goals

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November 13, 2025 · 9:00 AM UTC

Kyndryl launches new agentic AI services to support agentic-driven workforce strategy development and customer experience

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