Kyndryl Holdings narrows FY24 revenue growth view to (6%)-(7%) from (6%)-(8%)

Kyndryl is raising its FY24 adjusted pretax income outlook, which it now expects to be at least $140M, compared to its prior outlook of at least $100M. The Company is also raising its fiscal 2024 adjusted EBITDA margin outlook, now expecting it to be approximately 14.5%, compared to its prior outlook of approximately 14%. The Company is raising its FY24 targets primarily because of the benefits from its three-A initiatives, as discussed above, and noted that it continues to expect its FY24 adjusted free cash flow will be positive. Kyndryl is narrowing its outlook for constant-currency revenue growth to (6%) to (7%), which represents the stronger end of its prior estimate of (6%) to (8%).