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Q1 26 EPS
$0.37
BEAT +1.79%
Est. $0.36
Q1 26 Revenue
$3.74B
MISS 1.47%
Est. $3.80B
vs S&P Since Q1 26
-81.9%
TRAILING MARKET
KD -65.1% vs S&P +16.8%
Market Reaction
Did KD Beat Earnings? Q1 2026 Results
Kyndryl delivered a mixed fiscal first quarter for 2026, posting an earnings beat alongside a modest revenue shortfall as the IT infrastructure giant's profitability transformation continued to outrun its top-line recovery. Adjusted EPS came in at $0… Read more Kyndryl delivered a mixed fiscal first quarter for 2026, posting an earnings beat alongside a modest revenue shortfall as the IT infrastructure giant's profitability transformation continued to outrun its top-line recovery. Adjusted EPS came in at $0.37, clearing the $0.36 consensus estimate by 1.79%, while revenue of $3.74 billion trailed the $3.80 billion consensus by 1.47%, landing essentially flat year-over-year at just +0.1% growth. The standout driver behind the earnings strength was hyperscaler-related revenue, which surged 86% year-over-year to $400 million, keeping the company on track toward its fiscal 2026 target of $1.80 billion; that momentum, combined with AI-enabled automation through the Kyndryl Bridge platform, helped push adjusted EBITDA up 16% to $647 million with margins expanding to 17.3%. The stock's sharp decline following the report reflected investor focus on the revenue miss, though management reaffirmed its full-year outlook, including adjusted pretax income of at least $725 million and free cash flow of approximately $550 million.
Key Takeaways
- • Hyperscaler-related revenue of $400 million, up 86% year-over-year
- • Kyndryl Consult revenues grew 30% year-over-year
- • Three-A initiatives (Alliances, Advanced Delivery, Accounts) driving earnings growth and margin expansion
- • Trailing twelve-month signings of $18.3 billion, up 43% year-over-year
- • Projected pretax margin on recent signings in the high-single-digit range
- • AI-enabled automation through Kyndryl Bridge platform
KD YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
KD Revenue by Segment
With YoY comparisons, source: SEC Filings
KD Revenue by Geography
With YoY comparisons, source: SEC Filings
“Our first quarter reflected steady progress across key growth areas of our business, with contributions from Kyndryl Consult, hyperscaler-related activity, scope expansions and productivity gains. Our expertise in mission-critical technology and our unique operational capabilities, including Kyndryl Bridge, are helping customers innovate and creating new growth opportunities for Kyndryl.”
— Martin Schroeter, Q1 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% |