- Revenues for the quarter ended March 31, 2026 total $3.8 billion, pretax income is $132 million, net income is $17 million, adjusted EBITDA is $688 million, and adjusted pretax income is $162 million
- Fiscal year 2026 revenues total $15.1 billion, pretax income is $414 million, net income is $198 million, adjusted EBITDA is $2.7 billion, and adjusted pretax income is $581 million
- Company provides fiscal year 2027 outlook
NEW YORK, May 6, 2026 – Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today released financial results for its 2026 fiscal year and the quarter ended March 31, 2026, the fourth quarter of its 2026 fiscal year.
“With our mission-critical engineering expertise, we continue to support our customers’ most complex IT environments while taking disciplined actions to strengthen our business,” said Kyndryl Chairman and Chief Executive Officer Martin Schroeter. “Enterprises are turning to Kyndryl for our high-value services across agentic AI, IT modernization, public and private cloud and cybersecurity to help them modernize at scale, strengthen resilience and unlock greater business value.”
“As we move into fiscal 2027, we are focused on consistent execution and improving business fundamentals to drive profitability and cash flow and support our multi-year objectives.”
Results for the fiscal year ended March 31, 2026
For the fiscal year ended March 31, 2026, Kyndryl reported revenues of $15.1 billion, flat on a reported basis year-over-year and a decrease of 3% on a constant currency basis. The company reported pretax income of $414 million, compared to a pretax income of $435 million in fiscal year 2025. The income tax expense was $215 million, an increase from $184 million in the prior-year period, reflecting a non-recurring, non-cash tax accrual from the refinement of certain tax positions recorded in the fourth quarter, and the jurisdictional mix of our earnings. Net income was $198 million, or $0.85 per diluted share, in the year, compared to net income of $252 million, or $1.05 per diluted share, in the prior year. Cash flow from operations was $948 million, compared to $942 million in fiscal year 2025.
Adjusted pretax income was $581 million, a 21% increase compared to adjusted pretax income of $482 million in the prior-year period. Adjusted net income was $341 million, or $1.46 per diluted share, compared to adjusted net income of $285 million, or $1.19 per diluted share in the prior-year period. Adjusted EBITDA was $2.7 billion, a 6% year-over-year increase. Free cash flow was $406 million in fiscal year 2026, compared to $419 million in fiscal year 2025. See “Non-GAAP Metric Definitions and Reconciliations.”
Signings for fiscal year 2026 were $13.5 billion, including 38 contracts in excess of $50 million led by the United States segment. Among these large deals, more than 30% consisted of new scope and new logos, doubling from approximately 15% in the prior year period. Kyndryl’s signings performance, including new scope over the last few years, better positions the company to drive toward its multi-year objectives.
Results for the fiscal fourth quarter ended March 31, 2026
For the fourth quarter, Kyndryl reported revenues of $3.8 billion, a year-over-year decrease of 1% on a reported basis and a year-over-year decrease of 5% in constant currency. The company reported pretax income of $132 million, a 12% increase compared to pretax income of $118 million in the fourth quarter of fiscal 2025. The income tax expense was $115 million, an increase from $50 million in the prior-year period, reflecting a non-recurring, non-cash tax accrual from the refinement of certain tax positions. Net income was $17 million, or $0.08 per diluted share, in the quarter, compared to net income of $68 million, or $0.28 per diluted share, in the prior-year period. Cash flow from operations was $499 million, compared to $581 million in the fourth quarter of fiscal 2025.
Adjusted pretax income was $162 million, compared to adjusted pretax income of $185 million in the prior-year period. Adjusted net income was $40 million, or $0.18 per diluted share, compared to adjusted net income of $126 million, or $0.52 per diluted share, in the prior-year period. Adjusted EBITDA was $688 million, compared to adjusted EBITDA of $698 million in the prior-year period. Free cash flow was $388 million in the quarter, compared to $353 million in the fourth quarter of fiscal 2025. See “Non-GAAP Metric Definitions and Reconciliations.”
Share repurchases
The company repurchased 11.6 million shares of its common stock at a cost of $304 million in fiscal 2026, of which 3.3 million were purchased in the fourth quarter at a cost of $49 million. Since the authorization of its share repurchase program in November 2024, the company has bought back 14.3 million shares for $398 million, or 6% of its shares outstanding with approximately $302 million of capacity remaining under the program.
Fiscal year highlights
- Hyperscaler-related revenue – In fiscal 2026, Kyndryl recognized $1.9 billion in hyperscaler-related revenue, a 59% increase year-over-year, exceeding its $1.8 billion target for the full year.
- Kyndryl Consult revenue – In fiscal 2026, Kyndryl Consult revenues were $3.5 billion, a year-over-year increase of 18%, with signings of $4 billion for fiscal 2026.
- Strong projected margin on signings – Projected pretax margin associated with fiscal 2026 signings was in the high-single-digit range, demonstrating the company’s ability to build expected profit into its services contracts.
- Incremental contribution from three-A’s initiatives – The company’s Advanced Delivery initiative, focused on AI-enabled automation through our Kyndryl Bridge operating platform, and its Accounts initiative to address relationships with substandard margins continued to drive earnings growth and margin expansion in fiscal 2026.
- Artificial intelligence – During fiscal 2026, the company launched the Kyndryl Agentic AI Framework, enabling customers to adopt and scale agentic AI across on-premises, cloud and hybrid environments. Building on this foundation, Kyndryl introduced agentic AI services for workforce readiness, Agentic AI Digital Trust to govern and secure deployments, agentic AI services for the mainframe to accelerate modernization, and most recently launched Agentic Service Management to enable autonomous IT operations at scale.
Fiscal year 2027 outlook
Kyndryl is providing the following outlook for its fiscal year 2027:
- Adjusted pretax income of $600 to $700 million
- Consistent with our definition of adjusted pretax income since fiscal 2025, this includes workforce rebalancing charges
- Free cash flow of $400 to $500 million
- Constant-currency revenue flat to down 2%
See “Non-GAAP Metric Definitions and Reconciliations.”
Earnings webcast
Kyndryl’s earnings call for the fourth fiscal quarter is scheduled to begin at 8:30 a.m. ET on May 6, 2026. The live webcast can be accessed by visiting investors.kyndryl.com on Kyndryl’s investor relations website. A slide presentation will be made available on Kyndryl’s investor relations website before the call on May 6, 2026. Following the event, a replay will be available via webcast for twelve months at investors.kyndryl.com.
About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world’s largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.
Forward-looking and cautionary statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements concerning the company’s plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, including without limitation the outlook and financial objectives in this press release (which does not assume any future acquisitions or divestitures), are forward-looking statements. 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 expressions or the negative thereof or other variations thereon. Forward-looking statements are based on the company’s current assumptions and beliefs regarding future business and financial performance.
The company’s actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others: failure to attract new customers, retain existing customers or sell services to customers; failure to meet growth and productivity objectives and maintain our capital allocation strategy; competition; impacts of relationships with critical suppliers and partners; failure to address and adapt to technological developments and trends; inability to attract and retain key personnel and other skilled employees; impact of economic, geopolitical, public health and other conditions; damage to the company’s reputation and impact on the company and our stock price resulting from negative publicity; inability to accurately estimate the cost of services and the timeline for completion of contracts; service delivery issues; the company’s ability to successfully manage acquisitions and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt levels; the company’s ability to refinance maturing debt on favorable terms in a timely manner, or at all, and risks related to the company’s access to capital and credit markets; failure of the company’s intellectual property rights to prevent competitive offerings and the failure of the company to obtain, retain and extend necessary licenses; the impairment of our goodwill or long-lived assets; risks relating to cybersecurity, data governance and privacy; risks relating to non-compliance with legal and regulatory requirements and changes in laws, regulations and policies in the U.S. and countries where the company and its customers do business, including with respect to tariffs, taxes and other controls on imports or exports; adverse effects from tax matters; risks related to legal and regulatory claims, suits, investigations, proceedings and other matters, and consequences relating thereto; the company’s ability to remediate, and the timing and costs related to the remediation of, material weaknesses in internal control over financial reporting, as well as the company’s ability to maintain effective controls in the future; the impact of changes in market liquidity conditions and customer credit risk on receivables; the company’s pension plans; the impact of currency fluctuations; and risks related to the company’s common stock and the securities market.
Additional risks and uncertainties include, among others, those risks and uncertainties described in the “Risk Factors” section of the company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025 and quarterly report on Form 10-Q for the quarter ended December 31, 2025, as such factors may be updated from time to time in the company’s subsequent filings with the Securities and Exchange Commission. Any forward-looking statement in this press release speaks only as of the date on which it is made. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In this release, certain amounts may not add due to the use of rounded numbers; percentages presented are calculated based on the underlying amounts. Forecasted amounts are based on currency exchange rates as of April 2026.
Non-GAAP financial measures
In an effort to provide investors with additional information regarding its results, the company has provided certain metrics that are not calculated based on generally accepted accounting principles (GAAP), such as constant-currency results, adjusted EBITDA, adjusted pretax income, adjusted net income, adjusted EPS, adjusted EBITDA margin, adjusted pretax margin, adjusted net margin, net debt, free cash flow, adjusted free cash flow and adjusted operating cash flow. Such non-GAAP metrics are intended to supplement GAAP metrics, but not to replace them. The company’s non-GAAP metrics may not be comparable to similarly titled metrics used by other companies. Definitions and additional information about our calculation of non-GAAP metrics and reconciliations of non-GAAP metrics for historical periods to GAAP metrics are included in the tables in this release.
A reconciliation of forward-looking non-GAAP financial information is not included in this release because the company is unable to predict with reasonable certainty some individual components of such reconciliation without unreasonable effort. These items are uncertain, depend on various factors and could have a material impact on future results computed in accordance with GAAP.
Investor contact
investors@kyndryl.com
Kyndryl press contact
press@kyndryl.com
Leave a comment