EarningsQ1 2027 Earnings Report
MX:KD Q1 2027 EPS Results
Actual EPS-$2.20
Consensus EPS-$2.89
Beat/MissBeat by +$0.70
One Year Ago EPS$6.77
MX:KD Q1 2027 Revenue Results
Actual Revenue$66.19B
Expected Revenue$66.65B
Beat/MissMissed by -$455.90M
YoY Revenue Growth-3.34%
Earnings Announcement Details
QuarterQ1 2027
Date08/05/2026
TimeBefore Open
Conference CallWednesday, August 5, 2026
MX:KD Upcoming Earnings
Kyndryl Holdings Incorporation's next earnings date is estimated for November 10, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
MX:KD Q1 2027 Earnings Call
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Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented a mixed but pragmatic picture: meaningful progress in higher‑value areas (Kyndryl Consult, hyperscalers, signings quality, Agentic AI and productivity initiatives) and a strong balance sheet underpin long‑term confidence. However, near‑term financials were pressured by a 3% revenue decline, a Q1 adjusted pretax loss driven by sizeable workforce rebalancing charges, and a Q1 free cash flow outflow. Management reiterated fiscal 2027 guidance that assumes continued headwinds from the evolving IBM relationship and included restructuring charges while emphasizing multi‑year targets for significant profitability and free cash flow improvement in fiscal 2028.Company Guidance
Signings Momentum and Large Deal Activity
12‑month signings of $14.2 billion with $3.9 billion signed in Q1; 40 deals > $50 million signed in the last 12 months (10 in Q1). Approximately 30% of the value of those large deals came from scope expansions or new logos vs. 15% in fiscal 2025, indicating improving deal quality and mix.
Kyndryl Consult and Hyperscaler Growth
Kyndryl Consult revenue grew 14% (last 12 months) with Consult signings up ~50% in the quarter; hyperscaler‑related revenue streams grew 48% over the last 12 months and were >$530 million in the quarter ($2.0 billion over 12 months). U.S. revenue grew 5% for the second consecutive quarter.
Quality of Signings and Margins
Average projected gross margin on signings over the last 12 months was ~25% with projected pretax margins in the high single digits; management reports a gross profit book‑to‑bill at or above one, adding more gross profit dollars to backlog than recognized, signaling higher quality future earnings.
Advanced Delivery and Kyndryl Bridge / Agentic AI
Investments in Agentic AI and Kyndryl Bridge showing operational impact: management cited ~1,800 agents in the infrastructure, 16–18 million insights per month and over 200 million automations per month. These capabilities are being used to improve productivity, reduce errors and redeploy staff to higher‑value roles.
Financial Position and Capital Allocation
Cash balance of $2.1 billion at June 30 and net leverage of 0.8x; investment‑grade ratings reaffirmed by Fitch, Moody's and S&P. Under the repurchase program, the company repurchased 5 million shares for $64 million in Q1 and has repurchased ~8% of outstanding shares since program inception.
Multi‑Year Targets and Fiscal 2028 Ambition
Management reiterated fiscal 2028 targets: greater than $1.2 billion in adjusted pretax income and $1.0 billion in free cash flow, which they say are achievable on low single‑digit constant currency revenue growth, reflecting confidence in long‑term profitability improvement.
Operational Actions to Improve Profitability
Workforce rebalancing and '3A' advanced delivery initiatives expected to yield annualized savings of $400–$500 million in fiscal 2028 (fiscal 2027 includes ~$200 million of charges and comparable near‑term savings), signaling a clear plan to improve margins and operating leverage.
MX:KD Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed