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Q4 26 EPS
$0.18
MISS 61.62%
Est. $0.47
Q4 26 Revenue
$3.77B
BEAT +0.19%
Est. $3.76B
vs S&P Since Q4 26
-24.5%
TRAILING MARKET
KD -24.5% vs S&P 0.0%
Full Year 2026 Results
FY 26 EPS
$1.46
MISS 16.20%
Est. $1.74
FY 26 Revenue
$15.09B
BEAT +0.05%
Est. $15.08B
Market Reaction
Did KD Beat Earnings? Q4 2026 Results
Kyndryl Holdings delivered a mixed fourth quarter for fiscal 2026, narrowly beating revenue expectations while falling well short on earnings. The IT infrastructure services company posted revenue of $3.77 billion, edging past the $3.76 billion conse… Read more Kyndryl Holdings delivered a mixed fourth quarter for fiscal 2026, narrowly beating revenue expectations while falling well short on earnings. The IT infrastructure services company posted revenue of $3.77 billion, edging past the $3.76 billion consensus by 0.19% and rising 0.7% year over year, but adjusted EPS of $0.18 missed the $0.47 analyst estimate by 61.62%, a gap driven largely by a non-recurring, non-cash tax accrual that pushed income tax expense to $115 million from $50 million a year ago. Pretax income actually improved 12% to $132 million, suggesting the underlying business held its footing even as the bottom line took a hit. Bright spots included hyperscaler-related revenue reaching $1.90 billion for the full fiscal year, a 59% increase, and free cash flow climbing to $388 million from $353 million. A price target reduction from at least one analyst following the report reflects lingering skepticism. Looking ahead, management guided fiscal 2027 adjusted pretax income of $600 million to $700 million and free cash flow of $400 million to $500 million, with constant-currency revenue expected flat to down 2%.
Key Takeaways
- • Advanced Delivery initiative focused on AI-enabled automation through Kyndryl Bridge platform driving earnings growth and margin expansion
- • Accounts initiative addressing substandard margin relationships
- • Hyperscaler-related revenue reached $1.9 billion in FY2026, a 59% year-over-year increase
- • Kyndryl Consult revenues grew 18% to $3.5 billion in FY2026
- • Projected pretax margin on FY2026 signings was in the high-single-digit range
KD Forward Guidance & Outlook
For fiscal year 2027, Kyndryl guided adjusted pretax income of $600 to $700 million, free cash flow of $400 to $500 million, and constant-currency revenue flat to down 2%. The outlook includes workforce rebalancing charges consistent with the company's definition of adjusted pretax income since fiscal 2025. Forecasted amounts are based on currency exchange rates as of April 2026.
KD YoY Financials
Q4 2026 vs Q4 2025, source: SEC Filings
KD Revenue by Segment
With YoY comparisons, source: SEC Filings
KD Revenue by Geography
With YoY comparisons, source: SEC Filings
“With our mission-critical engineering expertise, we continue to support our customers' most complex IT environments while taking disciplined actions to strengthen our business.”
— Martin Schroeter, Q4 2026 Earnings Press Release
KD Earnings Trends
KD vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
KD EPS Trend
Earnings per share: estimate vs actual
KD Revenue Trend
Quarterly revenue: estimate vs actual
KD Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 26 MISS FY | $0.47 | $0.18 | -61.62% | $3.77B | +0.19% |
| FY Full Year | $1.74 | $1.46 | -16.20% | $15.09B | +0.05% |
| Q3 26 MISS | $0.60 | $0.52 | -13.75% | $3.86B | -0.67% |
| Q2 26 BEAT | $0.36 | $0.38 | +6.15% | $3.72B | -3.10% |
| Q1 26 BEAT | $0.36 | $0.37 | +1.79% | $3.74B | -1.47% |
| Q4 25 BEAT FY | $0.51 | $0.52 | +2.73% | $3.80B | +0.69% |
| FY Full Year | $1.14 | $1.19 | +4.28% | $15.06B | +0.16% |