Earnings Releases·Nov 4, 2026, 7:16 AM ET

Kyndryl — Second Quarter Fiscal 2027 Earnings Summary

Reported Q2 2027 revenue of $3.7 billion (down 1.9% YoY), while adjusted EBITDA rose to $699 million and adjusted net income increased to $92 million ($0.42/share) from $89 million ($0.38/share) in the prior year.
Reaffirmed full-year fiscal 2027 guidance for adjusted pretax income ($600–$700 million), free cash flow ($400–$500 million), and constant-currency revenue (flat to down 2%), despite a $38 million workforce rebalancing charge in the quarter.
Strategic momentum highlighted by 19.1% YoY growth in Kyndryl Consult signings and 38.5% YoY growth in hyperscaler-related revenues over the trailing twelve months, alongside the September 2026 acquisition of Healthcare IT Leaders, LLC.
Executed a $1 billion debt refinancing in September 2026, issuing $1 billion in senior notes to repay maturing debt and the revolving credit facility, while net debt decreased slightly to $4,059 million.
Anticipated annualized operating expense savings of $400–$500 million from workforce rebalancing in fiscal 2028, with savings expected to begin in the second half of fiscal 2027.