Kyndryl Holdings, Inc. Reveals Second Quarter Fiscal 2025 Financial Results

Kyndryl Holdings, Inc. (NYSE: KD), a major IT infrastructure services provider, recently announced its financial outcomes for the quarter concluding on September 30, 2024, marking the second quarter of its fiscal year 2025. The results were disclosed in a press release issued by the company.

The company’s revenues for the quarter totaled $3.8 billion, showing a 7% year-over-year drop both on a reported and constant-currency basis. The decline in revenues was attributed to the reduction of low-margin third-party content in customer contracts, notably in the US and Strategic Markets segments.

Despite a pretax loss of $5 million and a net loss of $43 million for the quarter, marked improvements were witnessed compared to the previous year. Notably, adjusted EBITDA amounted to $557 million, reflecting positive growth. Adjusted pretax income saw an 80% increase to $45 million, demonstrating progress driven by the company’s strategic initiatives.

Kyndryl reported a record total of $5.6 billion in signings for the quarter, showcasing a remarkable 132% year-over-year surge. Over the twelve months ending on September 30, 2024, total signings amounted to $16.0 billion, reflecting a notable 33% increase.

The company’s outlook for fiscal year 2025 remains positive, reaffirming expectations for adjusted EBITDA margin growth, constant-currency revenue enhancement, and adjusted free cash flow targets. The recent results were attributed to Kyndryl’s continued focus on high-margin services, strong customer relationships, and strategic innovations.

Looking ahead, Kyndryl is poised to continue leveraging its key initiatives encompassing alliances with hyperscalers, advanced delivery mechanisms, and targeted accounts management to bolster future growth prospects. The company remains committed to capitalizing on emerging market trends and sustaining a trajectory towards enhanced profitability in the forthcoming fiscal years.

Kyndryl’s management emphasized the company’s robust performance in the face of current market dynamics and reiterated its commitment to driving sustainable growth through strategic investments and operational efficiencies.

Investors and stakeholders can access further details about Kyndryl’s financial results and strategies through the company’s official investor relations website. The upcoming earnings call is scheduled to begin at 8:30 a.m. ET on November 7, 2024.

For more information about Kyndryl and its operations, please visit the company’s website at www.kyndryl.com.

The informational details provided in this report are based on the latest 8-K SEC Filing submitted by Kyndryl Holdings, Inc. Endorsements and forward-looking statements included in the text are subject to inherent risks and uncertainties as specified in the filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Kyndryl’s 8K filing here.

Kyndryl Company Profile

Kyndryl Holdings, Inc operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services.