Kyndryl reported first quarter fiscal 2027 revenue of $3.62 billion, a 3% decline year-over-year, missing analyst estimates. The company posted an adjusted loss per share of ($0.12), also below expectations, driven by $152 million in workforce rebalancing charges. Despite the top-line decline from the runoff of legacy business, the company reaffirmed its full-year outlook, citing momentum in its strategic growth areas.
Key Highlights
- Revenue of $3.62 billion declined 3% year-over-year on both a reported and constant-currency basis.
- Kyndryl Consult revenue grew 10% year-over-year, and hyperscaler-related revenue increased 34% to over $530 million, indicating progress in higher-value services.
- The company recorded a net loss of $55 million, compared to a $56 million net income in the prior year, primarily due to $152 million in workforce rebalancing charges.
- Kyndryl reaffirmed its fiscal 2027 outlook, including adjusted pretax income of $600 to $700 million and constant-currency revenue to be flat to down 2%.