NYSE$KD

Kyndryl Holdings Inc · Q3 2025 earnings

Q3 2025 earnings · · After market close · Investor relations

Briefing

Kyndryl's financial performance was marked by revenue of $3.74 billion and net income of $215 million.

Kyndryl reported revenues of $3.74 billion for the quarter ended December 31, 2024, with a net income of $215 million, or $0.89 per diluted share. Adjusted pretax income was $160 million, and adjusted net income was $124 million, or $0.51 per diluted share. The company's total signings were $4.1 billion, reflecting a 10% year-over-year increase.

  • Revenues for the quarter ended December 31, 2024 totaled $3.74 billion, with pretax income at $258 million and net income at $215 million.
  • Adjusted EBITDA was $704 million, adjusted pretax income was $160 million, and adjusted net income was $124 million.
  • Kyndryl Consult experienced double-digit revenue growth during the quarter and over the past twelve months.
  • The company raised its earnings and cash flow outlook for fiscal year 2025 and reaffirmed constant-currency revenue growth in the fourth quarter, supported by continued strong signings growth.

Headline financials

Total Revenue

$3.74B

Previous: $3.94B-4.9%
EPS (adj)

$0.51

Previous: -$0.05+1120.0%
Capital Expenditures

-$109M

Previous: -$174M+37.4%
Free Cash Flow

$171M

No prior period
Net Income

$215M

Previous: -$12M+1891.7%
Operating Income

$258M

Previous: $68M+279.4%
Gross Profit

$763M

Previous: $752M+1.5%

Revenue & EPS history

Kyndryl · Revenue · Quarterly

$3.74B

Q3 2025-4.9%vs Q3 2024
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

Kyndryl is raising its earnings and cash flow outlook for its fiscal year 2025 and expects to deliver constant-currency revenue growth of approximately 2% in the fourth quarter.

Tailwinds

  • Adjusted pretax income of at least $475 million, representing a year-over-year increase of at least $310 million.
  • Adjusted EBITDA margin of at least 16.7%, representing a year-over-year increase of at least 200 basis points.
  • Adjusted free cash flow of approximately $350 million.
  • Strong progress on three-A’s initiatives
  • Robust signings growth that demonstrate customer demand

Headwinds

  • Failure to attract new customers, retain existing customers or sell additional services to customers
  • Failure to meet growth and productivity objectives
  • Competition
  • Impacts of relationships with critical suppliers and partners
  • Failure to address and adapt to technological developments and trends

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 Q3 2025

Historical avgQ3 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

Earnings price reactions
QuarterReport dateReaction (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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