NYSE$KD
Kyndryl Holdings Inc · Q4 2024 earnings
Q4 2024 earnings · · Investor relations
Briefing
Kyndryl reported mixed results with revenue decline but improved profitability in Q4 2024.
Kyndryl's Q4 2024 results showed a revenue of $3.8 billion, a net loss of $45 million, and an adjusted EBITDA of $566 million. The company is focusing on strategic initiatives and expects a return to revenue growth in Q4 2025.
- Kyndryl's Q4 revenues totaled $3.8 billion, reflecting a year-over-year decline of 10%.
- The company reported a net loss of $45 million, or ($0.20) per diluted share, compared to a net loss of $737 million in the prior-year period.
- Adjusted EBITDA increased by 19% to $566 million, driven by the company’s three-A initiatives.
- Kyndryl Consult revenues grew 13% year-over-year, demonstrating strong performance in the consulting segment.
Headline financials
Revenue & EPS history
Kyndryl · Revenue · Quarterly
$3.85B
Forward guidance
Kyndryl expects revenue growth of (2%) to (4%) in constant currency compared to revenue of $16.1 billion in fiscal 2024, adjusted EBITDA margin of at least 16.2%, and adjusted pretax income of at least $435 million in fiscal 2025.
Tailwinds
- The Company now expects to deliver year-over-year constant-currency revenue growth in the fourth quarter of the fiscal year.
- Adjusted EBITDA margin of at least 16.2%, an increase of at least 150 basis points compared to 14.7% in fiscal 2024, reflecting incremental benefits from the three-A initiatives.
- Adjusted pretax income of at least $435 million, an increase of at least $270 million compared to $165 million in fiscal 2024.
- Conversion of adjusted pretax income (less cash taxes) to adjusted free cash flow of roughly 100%.
Headwinds
- Revenue growth of (2%) to (4%) in constant currency compared to revenue of $16.1 billion in fiscal 2024, which reflects actions by Kyndryl to reduce certain inherited zero-margin and low-margin revenue streams.
- Based on recent exchange rates, the Company’s outlook implies fiscal 2025 revenue of $15.2 to $15.5 billion.
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 Q4 2024
+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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