KD

EX-99.1

2 kd-ex99d1.htm

EX-99.1

​

​

​

Exhibit 99.1

​

​

KYNDRYL REPORTS SECOND QUARTER FISCAL 2027 RESULTS

​

●Revenues for the quarter ended September 30, 2026 total $3.7 billion, pretax income is $112 million, and net income is $59 million

​

●Adjusted EBITDA is $699 million, adjusted pretax income is $150 million, and adjusted net income is $92 million

​

●Company reaffirms fiscal 2027 outlook

NEW YORK, November 4, 2026 – Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today released financial results for the quarter ended September 30, 2026, the second quarter of its 2027 fiscal year.

“Strong signings and continued growth in Kyndryl Consult and hyperscaler-related revenue reinforce our confidence in our fiscal 2027 outlook,” said Chairman and Chief Executive Officer Martin Schroeter. “Our performance reflects demand for Kyndryl’s AI-led modernization capabilities and deep mission-critical expertise that help customers evolve their complex technology environments, strengthen cybersecurity and achieve measurable business outcomes."

Results for the Fiscal Second Quarter Ended September 30, 2026

For the second quarter, Kyndryl reported revenues of $3.7 billion, down 1.9% year-over-year on a reported basis and down 0.8% year-over-year in constant currency. The Company reported pretax income of $112 million, compared to pretax income of $98 million in the prior-year period. Net income was $59 million, or $0.27 per diluted share, in the quarter, compared to net income of $68 million, or $0.29 per diluted share, in the prior-year period. The second quarter 2027 results include workforce rebalancing charges of $38 million compared to $19 million in the prior-year period. Cash provided by operations was $172 million, compared to $147 million in the prior-year period.

Adjusted pretax income was $150 million, compared to adjusted pretax income of $123 million in the prior-year period. Adjusted net income was $92 million, or $0.42 per diluted share, compared to adjusted net income of $89 million, or $0.38 per diluted share, in the prior-year period. Adjusted EBITDA was $699 million compared to $641 million in the prior-year period. The second quarter 2027 results include workforce rebalancing charges as described above. Free cash flow was a use of $34 million in the quarter, compared to a source of cash of $22 million in the prior year. See “Definitions and Non-GAAP Reconciliations.”

“Our results reflect continued progress against our strategic and financial priorities,” said Chief Financial Officer Ellen Johnson. “We remain focused on disciplined execution to strengthen our fundamentals, support margin expansion and drive free cash flow growth.”

Highlights

●Signings – In the trailing twelve months signings were $15.5 billion, including $4.1 billion in the second quarter. Kyndryl signed 43 customer contracts exceeding $50 million each in the last twelve months, of which 11 were in the second quarter.

●Kyndryl Consult revenue – In the second quarter, Kyndryl Consult revenues grew 4.2% year-over-year. Over the last twelve months, Kyndryl Consult revenues were $3.6 billion, a 8.1% increase year-over-year. Kyndryl Consult signings were $4.6 billion over the last twelve months, a 19.1% increase year-over-year.

●Hyperscaler-related revenue – In the second quarter, hyperscaler-related revenues of more than $550 million grew 27.2% year-over-year. Over the last twelve months, hyperscaler-related revenues were $2.1 billion, a 38.5% increase year-over-year.

●AI-led modernization – Kyndryl’s 2026 State of Modernization Report found that AI is driving new modernization demands even as 51% of organizations cite legacy integration as their top obstacle to progress. To support our customers, Kyndryl expanded its AI-led modernization capabilities through new Agentic Modernization services-as-software and the continued expansion of its global AI Innovation Lab network in Dallas, Texas and Luxembourg.

●Actions to streamline operations – In the second quarter, Kyndryl incurred $38 million of charges related to workforce-rebalancing actions. The Company continues to expect approximately $200 million of charges in fiscal 2027, of which $190 million were incurred in the first half, with savings expected to begin in the second half of fiscal 2027 that will largely offset the charges. These workforce rebalancing efforts, once completed, are expected to result in annualized run-rate operating expense savings of approximately $400 to $500 million in the Company’s fiscal year 2028.

●Company closes Healthcare IT Leaders, LLC acquisition – In mid-September, Kyndryl announced the completion of its acquisition of Healthcare IT Leaders, an enterprise IT services provider serving hospitals and health systems across the U.S. The acquisition strengthens Kyndryl’s capabilities in healthcare application implementation and managed services and expands Kyndryl’s ability to help h

SEC.gov | Request Rate Threshold Exceeded

U.S. Securities and Exchange Commission

You’ve Exceeded the SEC’s Traffic Limit

Your request rate has exceeded the SEC’s maximum allowable requests per second. Your access to SEC.gov will be limited for 10 minutes.

Current guidelines limit each user to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests. To ensure that SEC.gov remains available to all users, we reserve the right to block IP addresses that submit excessive requests.

The block will be lifted automatically by waiting 10 minutes. Continuing to exceed the SEC’s maximum allowable request rate during the time-out period will extend the duration of the time-out period. To ensure fair access for all users, please reduce the rate of your requests and visit SEC.gov again after the 10 minute time-out period has passed.

For best practices on efficiently downloading information from SEC.gov, including the latest EDGAR filings, visit sec.gov/developer. You can also sign up for email updates on the SEC open data program, including best practices that make it more efficient to download data, and SEC.gov enhancements that may impact scripted downloading processes. For more information, contact opendata@sec.gov.

For more information, please see the SEC’s Web Site Privacy and Security Policy. Thank you for your interest in the U.S. Securities and Exchange Commission.

Reference ID: 0.c706d217.1786282174.119e80f6

More Information

Internet Security Policy

By using this site, you are agreeing to security monitoring and auditing. For security purposes, and to ensure that the public service remains available to users, this government computer system employs programs to monitor network traffic to identify unauthorized attempts to upload or change information or to otherwise cause damage, including attempts to deny service to users.

Unauthorized attempts to upload information and/or change information on any portion of this site are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986 and the National Information Infrastructure Protection Act of 1996 (see Title 18 U.S.C. §§ 1001 and 1030).

To ensure our website performs well for all users, the SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content. We reserve the right to block IP addresses that submit excessive requests. Current guidelines limit users to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests.

If a user or application submits more than 10 requests per second, further requests from the IP address(es) may be limited for a brief period. Once the rate of requests has dropped below the threshold for 10 minutes, the user may resume accessing content on SEC.gov. This SEC practice is designed to limit excessive automated searches on SEC.gov and is not intended or expected to impact individuals browsing the SEC.gov website.

Note that this policy may change as the SEC manages SEC.gov to ensure that the website performs efficiently and remains available to all users.

Note: We do not offer technical support for developing or debugging scripted downloading processes.

EX-99.1

2 kd-20260505xex99d1.htm

EX-99.1

​

​

​

Exhibit 99.1

​

​

KYNDRYL REPORTS FOURTH QUARTER AND FULL-YEAR 2026 RESULTS

​

●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