NYSE$KD
Kyndryl Holdings Inc · Q2 2026 earnings
Q2 2026 earnings · · After market close · Investor relations
Briefing
Kyndryl posted improved earnings and margins in Q2 FY26 driven by growth in hyperscaler alliances, AI initiatives, and cost discipline.
Kyndryl reported Q2 FY26 revenue of $3.72 billion and returned to profitability with $68 million in net income. The company grew its adjusted EBITDA by 15% YoY and maintained solid margins while expanding strategic initiatives like AI, cloud, and hyperscaler partnerships.
Headline financials
Revenue & EPS history
Kyndryl · Revenue · Quarterly
$3.72B
Forward guidance
Kyndryl reaffirmed its FY26 outlook, expecting improved revenue in the second half, driven by strong pipelines and growth in cloud, AI, and Consult segments.
Tailwinds
- Reaffirmed FY26 outlook with expected revenue growth in H2.
- On track for adjusted pretax income of at least $725M.
- Projected 18% adjusted EBITDA margin for FY26.
- Free cash flow expected to reach $550M for FY26.
- Strong momentum in hyperscaler and AI-related revenue growth.
Headwinds
- Q2 revenue slightly declined YoY.
- Signings decreased 49% YoY due to tough comparison from a large deal in prior year.
- Free cash flow was limited at $22M in Q2.
- Longer sales cycles are affecting new business conversion.
- Total cash balance declined from prior quarter.
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 Q2 2026
+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% |
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