Kyndryl Holdings, Inc. (NYSE:KD) released its financial results for the fiscal second quarter ended September 30, 2026, on November 4, 2026, reporting revenues of $3.7 billion and reaffirming its full fiscal year 2027 outlook.

Key Highlights

  • Revenue of $3.7 billion for the quarter ended September 30, 2026, down 1.9% year-over-year on a reported basis and down 0.8% in constant currency, according to the filing.
  • Net income of $59 million, or $0.27 per diluted share, compared to net income of $68 million, or $0.29 per diluted share, in the prior-year period.
  • Adjusted EBITDA of $699 million, compared to $641 million in the prior-year period.
  • Trailing twelve-month signings of $15.5 billion, including $4.1 billion in the second quarter, with 11 customer contracts exceeding $50 million each signed in the quarter.
  • Hyperscaler-related revenues of more than $550 million in the second quarter, up 27.2% year-over-year.
  • Debt refinancing completed September 28, 2026, with $600 million of 7.80% Senior Notes due 2029 and $400 million of 7.875% Senior Notes due 2032 issued.
  • Fiscal year 2027 outlook reaffirmed, including adjusted pretax income of $600 to $700 million and free cash flow of $400 to $500 million.

Kyndryl's Fiscal Second Quarter 2027 Financial Results in Detail

According to the filing, Kyndryl reported pretax income of $112 million for the second quarter of fiscal 2027, compared to pretax income of $98 million in the prior-year period. The quarter included workforce rebalancing charges of $38 million, up from $19 million in the prior-year period. Cash provided by operations was $172 million, compared to $147 million in the prior-year period. Free cash flow was a use of $34 million in the quarter, compared to a source of cash of $22 million in the prior year.

On an adjusted basis, the company disclosed adjusted pretax income of $150 million, compared to $123 million in the prior-year period, and adjusted net income of $92 million, or $0.42 per diluted share, compared to $89 million, or $0.38 per diluted share, in the prior-year period. The company noted that it continues to expect approximately $200 million of workforce rebalancing charges in fiscal 2027, of which $190 million were incurred in the first half. According to the filing, these rebalancing efforts, once completed, are expected to result in "annualized run-rate operating expense savings of approximately $400 to $500 million in the Company's fiscal year 2028."

The filing also noted that Kyndryl Consult revenues grew 4.2% year-over-year in the second quarter, with trailing twelve-month Kyndryl Consult revenues of $3.6 billion, an 8.1% increase year-over-year. The company disclosed the completion of its acquisition of Healthcare IT Leaders, LLC in mid-September, describing it as an enterprise IT services provider serving hospitals and health systems across the U.S. Regarding debt, Kyndryl reported using the net proceeds of the September 28, 2026 notes offering to repay at maturity the $700 million of 2.05% Senior Notes in October 2026 and to repay the $1 billion outstanding balance under its revolving credit agreement at the end of September.

What Was Disclosed

Kyndryl reported second quarter fiscal 2027 results including $3.7 billion in revenues, $699 million in adjusted EBITDA, and $59 million in net income, while reaffirming its full fiscal year 2027 adjusted pretax income and free cash flow outlook ranges.