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Kyndryl Holdings Inc · Q4 2025 earnings

Q4 2025 earnings · · After market close · Investor relations

Briefing

Kyndryl reported fiscal Q4 2025 revenues of $3.8B with net income of $68M and diluted EPS of $0.28.

Fourth-quarter revenues were $3.8 billion, up 1.3% in constant currency, with pretax income of $118 million. Net income was $68 million, or $0.28 per diluted share; adjusted net income was $126 million, or $0.52 per adjusted diluted share, with record fiscal-year signings of $18.2 billion.

  • Q4 revenues $3.8B; constant-currency growth 1.3%.
  • Net income $68M; adjusted EPS $0.52.
  • FY2025 signings $18.2B (+46% YoY).
  • FY2026 outlook: adj. pretax income at least $725M.

Headline financials

Total Revenue

$3.8B

Previous: $3.85B-1.3%
EPS (adj)

$0.52

Previous: -$0.20+360.0%
Adjusted EBITDA Margin

18.4%

No prior period
Signings

$5.5B

Previous: $3.6B+52.8%
Net Income

$68M

Previous: -$45M+251.1%
Operating Income

$123M

Previous: -$4M+3177.8%

Revenue & EPS history

Kyndryl · Revenue · Quarterly

$3.8B

Q4 2025-1.3%vs Q4 2024
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

Kyndryl guided fiscal 2026 to at least $725M adjusted pretax income, ~18% adjusted EBITDA margin, and ~$550M adjusted free cash flow, assuming ~1% constant-currency revenue growth.

Tailwinds

  • Record FY2025 signings $18.2B (+46% YoY).
  • FY2026 adj. pretax income at least $725M.
  • Share repurchase program active.

Headwinds

  • Inherited low-margin contract runoff.
  • IBM software cost step-up contractually required.
  • Macro IT services spending uncertainty.

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 2025

Historical avgQ4 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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