NYSE$KD
Kyndryl Holdings Inc · Q1 2025 earnings
Q1 2025 earnings · · Investor relations
Briefing
Kyndryl reported strong Q1 2025 results with revenue of $3.74 billion and net income of $11 million, driven by growth in Kyndryl Consult and hyperscaler-related revenues.
Kyndryl's Q1 2025 results showed a revenue of $3.74 billion and a net income of $11 million. The company experienced growth in Kyndryl Consult and hyperscaler-related revenues. They are on track to deliver top-line growth in the fourth quarter of this fiscal year.
- Revenues for the quarter totaled $3.74 billion, with a pretax income of $64 million and a net income of $11 million.
- Adjusted EBITDA was $556 million, adjusted pretax income was $92 million, and adjusted net income was $31 million.
- Kyndryl Consult continued to gain momentum with double-digit revenue growth in the quarter and over the last twelve months.
- The company raised its adjusted earnings outlook for fiscal year 2025 and reaffirmed its constant-currency revenue outlook, expecting revenue growth in the fourth quarter.
Headline financials
Revenue & EPS history
Kyndryl · Revenue · Quarterly
$3.74B
Forward guidance
Kyndryl is raising its adjusted earnings outlook for its fiscal year 2025 and reaffirming its outlook for constant-currency revenue growth of (2%) to (4%).
Tailwinds
- Adjusted EBITDA margin of at least 16.3% compared to its prior outlook of at least 16.2%.
- Represents a year-over-year increase of at least 160 basis points.
- Adjusted pretax income of at least $460 million compared to its prior outlook of at least $435 million.
- Represents a year-over-year increase of at least $295 million.
- The Company continues to expect to deliver year-over-year constant-currency revenue growth in the fourth quarter of the fiscal year.
Headwinds
- Constant-currency revenue growth of (2%) to (4%), which reflects actions by Kyndryl to reduce certain inherited zero-margin and low-margin revenue streams.
- Fiscal 2025 revenue of $15.2 to $15.5 billion based on recent exchange rates.
- Seasonally weak quarter for cash flow.
- Cash flow used in operations was $48 million.
- Adjusted free cash flow was ($116) million.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2025
+0.8%
Avg return
Earnings day
+1.5%
Avg return
5 days after
+4.7%
Avg return
30 days after
55%
12 / 22 earnings
Positive
+27.1%
Q4 2024
Best reaction
-54.9%
Q3 2026
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2026 | -3.8% | -12.5% | -11.5% | |
| Q3 2026 | -54.9% | -47.9% | -46.1% | |
| Q2 2026 | -4.7% | -5.0% | -4.5% | |
| Q4 2025 | +10.5% | +24.2% | +21.8% | |
| Q3 2025 | +5.2% | +10.1% | -6.6% | |
| Q2 2025 | +19.8% | +22.1% | +50.1% | |
| Q1 2025 | -12.2% | -14.4% | -11.4% | |
| Q4 2024 | +27.1% | +30.5% | +26.9% | |
| Q3 2024 | +1.6% | +7.8% | +5.9% | |
| Q2 2024 | +15.1% | +15.1% | +19.3% | |
| Q1 2024 | +16.0% | +27.0% | +32.1% | |
| Q4 2023 | -13.6% | -19.6% | -8.4% | |
| Q3 2023 | +24.8% | +23.5% | +14.9% | |
| Q1 2021 | +7.0% | +6.2% | +38.8% | |
| Q2 2023 | -15.1% | -9.1% | +17.9% | |
| Q2 2021 | -0.6% | -1.4% | -8.7% | |
| Q1 2023 | +4.5% | +12.4% | +4.6% | |
| Q4 2019 | +1.4% | -0.9% | -18.6% | |
| Q1 2022 | +15.2% | +12.1% | +0.5% | |
| Q4 2021 | -14.7% | -24.9% | -16.9% | |
| Q4 2020 | -5.5% | -10.9% | +1.7% | |
| Q3 2021 | -5.5% | -10.9% | +1.7% |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro