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Q3 26 EPS
$0.52
MISS 13.75%
Est. $0.60
Q3 26 Revenue
$3.86B
MISS 0.67%
Est. $3.89B
vs S&P Since Q3 26
0.0%
TRAILING MARKET
KD +5.9% vs S&P +6.0%
Market Reaction
Did KD Beat Earnings? Q3 2026 Results
Kyndryl delivered a mixed fiscal third-quarter report, missing on both the top and bottom lines as an unusual set of charges clouded otherwise steady operational progress. The IT infrastructure services company posted adjusted EPS of $0.52, falling s… Read more Kyndryl delivered a mixed fiscal third-quarter report, missing on both the top and bottom lines as an unusual set of charges clouded otherwise steady operational progress. The IT infrastructure services company posted adjusted EPS of $0.52, falling short of the $0.60 consensus estimate by 13.75%, while revenue of $3.86 billion came in 0.67% below expectations despite growing 3.1% year-over-year. The earnings shortfall was compounded by a $38.00 million pretax loss tied to an interim arbitration decision on a legacy pre-spin matter, which weighed on GAAP net income, and the company disclosed that its 10-Q filing will be delayed pending an internal accounting review, a development that has since drawn multiple securities class action lawsuits alleging inadequate internal controls. Against that backdrop, hyperscaler-related revenue surged 58% to $500.00 million, putting Kyndryl on pace to exceed its $1.80 billion full-year hyperscaler target. Looking ahead, management guided for fiscal 2026 adjusted pretax income of $575.00 to $600.00 million and free cash flow of $325.00 to $375.00 million.
Key Takeaways
- • Three-A initiatives: Alliances, Advanced Delivery, and Accounts driving earnings growth and margin expansion
- • Hyperscaler-related revenue of $500 million in Q3, up 58% year-over-year
- • Kyndryl Consult revenue growth of 24% year-over-year
- • Strong projected pretax margin on recent signings in the high-single-digit range
- • AI-enabled automation through Kyndryl Bridge operating platform
- • Operating cash flow improvement to $427 million from $260 million year-over-year
KD YoY Financials
Q3 2026 vs Q3 2025, source: SEC Filings
KD Revenue by Segment
With YoY comparisons, source: SEC Filings
KD Revenue by Geography
With YoY comparisons, source: SEC Filings
“In the third quarter, we drove growth in Kyndryl Consult and through our alliances with hyperscalers and other leading technology providers. Our signings continue to reflect the vital role we play in the operation of customers' technology estates, our deep expertise in mission-critical services and our innovation in AI, cloud and security.”
— Martin Schroeter, Q3 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% |