Kyndryl Holdings Inc

Kyndryl Holdings delivered a mixed fiscal first-quarter 2027 result, matching the Wall Street consensus on earnings while falling slightly short on the top line, as $152 million in workforce rebalancing charges weighed heavily on the period. The IT infrastructure services company posted an EPS loss of $0.12, in line with analyst expectations, while revenue of $3.62 billion trailed the $3.66 billion consensus by 1.28% and declined 4.8% year-over-year. Those restructuring charges, part of a planned $200 million program for fiscal 2027, were the single largest factor driving the swing from prior-year profitability to losses across income metrics, though management expects the effort to generate $400 to $500 million in annualized run-rate savings by fiscal 2028. Bright spots included hyperscaler-related revenues growing 34% year-over-year to exceed $530 million and Kyndryl Consult revenues rising 10%, partially offsetting weakness in Principal Markets and Strategic Markets segments. The company reaffirmed its full-year outlook for adjusted pretax income of $600 to $700 million and free cash flow of $400 to $500 million, even as ongoing securities litigation related to prior internal control issues continues to shadow the broader narrative.