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Kyndryl Hldgs Inc Financials

KD
Source SEC Filings (10-K/10-Q) Updated Mar 31, 2026 Currency USD FYE March

This page shows Kyndryl Hldgs Inc (KD) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI KD FY2025

Margin expansion and lighter reinvestment turned a shrinking-revenue services base into positive cash generation by FY2025.

From FY2023 to FY2025, gross margin expanded from 14.9% to 20.9% even as sales kept shrinking, showing the turnaround came from a richer margin structure and lower cost burden, not from scale. With capex also easing, free cash flow flipped from -$84M to $337M, so the first profitable year also produced cash left after maintaining the asset base.

The balance sheet is still liability-heavy, with $9.1B of liabilities against only $1.2B of equity, so a single profitable year has not rebuilt much shock absorption. A current ratio of 1.1x says near-term obligations look manageable, but there is little excess liquidity if operations slip again.

In FY2025, operating cash flow ran ahead of net income, which gives the profit turnaround better earnings quality than the income statement alone suggests. Capex fell to $605M from $865M, meaning less of the cash coming in was immediately required just to sustain the business.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 22 / 100
Financial Profile 22/100

Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Kyndryl Hldgs Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Growth
28

Kyndryl Hldgs Inc's revenue grew a modest 0.2% year-over-year to $15.1B. This slow but positive growth earns a score of 28/100.

Leverage
34

Kyndryl Hldgs Inc has a moderate D/E ratio of 3.32. This balance of debt and equity financing earns a leverage score of 34/100.

Liquidity
12

Kyndryl Hldgs Inc's current ratio of 0.88 is below the typical benchmark, resulting in a score of 12/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow
29

Kyndryl Hldgs Inc's free cash flow margin of 2.3% results in a low score of 29/100. Capital expenditures of $608.0M absorb a large share of operating cash flow.

Returns
29

Kyndryl Hldgs Inc generates a 16.9% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 29/100. This is down from 20.7% the prior year.

Piotroski F-Score Neutral
4/9

Kyndryl Hldgs Inc passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed
4.79x

For every $1 of reported earnings, Kyndryl Hldgs Inc generates $4.79 in operating cash flow ($948.0M OCF vs $198.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Earnings & Revenue

Revenue
$15.1B
YoY+0.2%
5Y CAGR-4.9%

Kyndryl Hldgs Inc generated $15.1B in revenue in fiscal year 2026. This represents an increase of 0.2% from the prior year.

EBITDA
N/A
Net Income
$198.0M
YoY-21.4%

Kyndryl Hldgs Inc reported $198.0M in net income in fiscal year 2026. This represents a decrease of 21.4% from the prior year.

EPS (Diluted)
$0.85
YoY-19.0%

Kyndryl Hldgs Inc earned $0.85 per diluted share (EPS) in fiscal year 2026. This represents a decrease of 19.0% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$340.0M
YoY+0.9%

Kyndryl Hldgs Inc generated $340.0M in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 0.9% from the prior year.

Cash & Debt
$2.6B
YoY+46.9%
5Y CAGR+155.7%

Kyndryl Hldgs Inc held $2.6B in cash against $3.9B in long-term debt as of fiscal year 2026.

Dividends Per Share
$0.00

Kyndryl Hldgs Inc paid $0.00 per share in dividends in fiscal year 2026.

Shares Outstanding
220M

Kyndryl Hldgs Inc had 220M shares outstanding in fiscal year 2026.

Margins & Returns

Gross Margin
21.8%
YoY+0.9pp
5Y CAGR+10.3pp

Kyndryl Hldgs Inc's gross margin was 21.8% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 0.9 percentage points from the prior year.

Operating Margin
N/A
Net Margin
1.3%
YoY-0.4pp
5Y CAGR+11.7pp

Kyndryl Hldgs Inc's net profit margin was 1.3% in fiscal year 2026, showing the share of revenue converted to profit. This is down 0.4 percentage points from the prior year.

Return on Equity
16.9%
YoY-3.8pp
5Y CAGR+57.6pp

Kyndryl Hldgs Inc's ROE was 16.9% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 3.8 percentage points from the prior year.

Capital Allocation

R&D Spending
$57.0M
YoY+16.3%
5Y CAGR-5.6%

Kyndryl Hldgs Inc invested $57.0M in research and development in fiscal year 2026. This represents an increase of 16.3% from the prior year.

Share Buybacks
$304.0M
YoY+226.9%

Kyndryl Hldgs Inc spent $304.0M on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 226.9% from the prior year.

Capital Expenditures
$608.0M
YoY+0.5%
5Y CAGR-10.1%

Kyndryl Hldgs Inc invested $608.0M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 0.5% from the prior year.

KD Income Statement

Metric Q4'26 Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25
Revenue $3.8B-2.3% $3.9B+3.7% $3.7B-0.6% $3.7B-1.5% $3.8B+1.5% $3.7B-0.8% $3.8B+0.9% $3.7B
Cost of Revenue $2.9B-3.2% $3.0B+3.3% $2.9B-0.9% $2.9B-0.9% $3.0B-0.2% $3.0B-1.4% $3.0B+3.1% $2.9B
Gross Profit $849.0M+0.7% $843.0M+5.2% $801.0M+0.6% $796.0M-3.5% $825.0M+8.1% $763.0M+1.7% $750.0M-6.8% $805.0M
R&D Expenses N/A N/A N/A N/A N/A N/A N/A N/A
SG&A Expenses $677.0M+0.7% $672.0M+2.0% $659.0M+2.0% $646.0M+0.9% $640.0M-1.1% $647.0M0.0% $647.0M-1.5% $657.0M
Operating Income N/A N/A N/A N/A N/A N/A N/A N/A
Interest Expense $29.0M+38.1% $21.0M+5.0% $20.0M+5.3% $19.0M-17.4% $23.0M-4.2% $24.0M-4.0% $25.0M-10.7% $28.0M
Income Tax $115.0M+238.2% $34.0M+13.3% $30.0M-16.7% $36.0M-28.0% $50.0M+16.3% $43.0M+13.2% $38.0M-28.3% $53.0M
Net Income $17.0M-70.2% $57.0M-16.2% $68.0M+21.4% $56.0M-18.8% $69.0M-67.9% $215.0M+600.0% -$43.0M-490.9% $11.0M
EPS (Diluted) N/A $0.25-13.8% $0.29+26.1% $0.23 N/A $0.89+568.4% $-0.19-480.0% $0.05

KD Balance Sheet

Metric Q4'26 Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25
Total Assets $12.6B+11.3% $11.3B+0.3% $11.2B-2.2% $11.5B+10.0% $10.5B+5.3% $9.9B-4.5% $10.4B+2.3% $10.2B
Current Assets $5.5B+27.8% $4.3B+0.8% $4.3B-4.0% $4.5B-2.6% $4.6B+6.8% $4.3B-2.1% $4.4B+0.7% $4.4B
Cash & Equivalents $2.6B+94.6% $1.3B+1.3% $1.3B-9.0% $1.5B-18.1% $1.8B+19.0% $1.5B+13.3% $1.3B+4.4% $1.3B
Inventory N/A N/A N/A N/A N/A N/A N/A N/A
Accounts Receivable $1.3B-3.9% $1.4B+2.8% $1.3B+3.1% $1.3B-5.1% $1.3B-2.1% $1.4B-4.6% $1.4B+0.1% $1.4B
Goodwill $786.0M-0.1% $787.0M-0.5% $791.0M-0.3% $793.0M+0.4% $790.0M+0.4% $787.0M-0.4% $790.0M+0.5% $786.0M
Total Liabilities $11.3B+13.0% $10.0B+0.6% $9.9B-2.4% $10.2B+11.3% $9.1B+4.6% $8.7B-5.5% $9.2B+1.8% $9.1B
Current Liabilities $6.3B+25.1% $5.0B+20.2% $4.2B-1.1% $4.2B-1.3% $4.3B+9.3% $3.9B-7.4% $4.2B+0.4% $4.2B
Long-Term Debt $3.9B+34.5% $2.9B0.0% $2.9B0.0% $2.9B0.0% $2.9B0.0% $2.9B0.0% $2.9B0.0% $2.9B
Total Equity $1.2B-1.6% $1.2B-2.7% $1.2B-0.6% $1.2B+1.2% $1.2B+11.4% $1.1B+2.7% $1.1B+6.9% $996.0M
Retained Earnings -$1.9B+0.9% -$1.9B+2.9% -$1.9B+3.4% -$2.0B+2.7% -$2.1B+3.2% -$2.1B+9.1% -$2.4B-1.9% -$2.3B

KD Cash Flow Statement

Metric Q4'26 Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25
Operating Cash Flow $498.0M+16.4% $428.0M+193.2% $146.0M+217.7% -$124.0M-121.3% $581.0M+123.5% $260.0M+74.5% $149.0M+410.4% -$48.0M
Capital Expenditures $116.0M-47.3% $220.0M+70.5% $129.0M-9.8% $143.0M-40.4% $240.0M+120.2% $109.0M-18.7% $134.0M+9.8% $122.0M
Free Cash Flow $382.0M+83.7% $208.0M+1123.5% $17.0M+106.4% -$267.0M-178.3% $341.0M+125.8% $151.0M+906.7% $15.0M+108.8% -$170.0M
Investing Cash Flow -$125.0M+47.9% -$240.0M-96.7% -$122.0M-64.9% -$74.0M+63.9% -$205.0M-588.1% $42.0M+156.0% -$75.0M+54.8% -$166.0M
Financing Cash Flow $905.0M+755.8% -$138.0M+1.4% -$140.0M+17.6% -$170.0M-49.1% -$114.0M-60.6% -$71.0M-42.0% -$50.0M+2.0% -$51.0M
Dividends Paid N/A N/A N/A N/A N/A N/A N/A N/A
Share Buybacks $54.0M-45.5% $99.0M+11.2% $89.0M+43.5% $62.0M-1.6% $63.0M N/A N/A N/A

KD Financial Ratios

Metric Q4'26 Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25
Gross Margin 22.5%+0.7pp 21.9%+0.3pp 21.5%+0.3pp 21.3%-0.4pp 21.7%+1.3pp 20.4%+0.5pp 19.9%-1.7pp 21.5%
Operating Margin N/A N/A N/A N/A N/A N/A N/A N/A
Net Margin 0.4%-1.0pp 1.5%-0.3pp 1.8%+0.3pp 1.5%-0.3pp 1.8%-3.9pp 5.7%+6.9pp -1.1%-1.4pp 0.3%
Return on Equity 1.5%-3.3pp 4.8%-0.8pp 5.5%+1.0pp 4.5%-1.1pp 5.7%-14.0pp 19.7%+23.7pp -4.0%-5.1pp 1.1%
Return on Assets 0.1%-0.4pp 0.5%-0.1pp 0.6%+0.1pp 0.5%-0.2pp 0.7%-1.5pp 2.2%+2.6pp -0.4%-0.5pp 0.1%
Current Ratio 0.88+0.0 0.86-0.2 1.02-0.0 1.05-0.0 1.07-0.0 1.09+0.1 1.030.0 1.03
Debt-to-Equity 3.32+0.9 2.43+0.1 2.36+0.0 2.35-0.0 2.38-0.3 2.65-0.1 2.72-0.2 2.91
FCF Margin 10.1%+4.8pp 5.4%+4.9pp 0.5%+7.6pp -7.1%-16.1pp 9.0%+4.9pp 4.0%+3.6pp 0.4%+5.0pp -4.5%

Note: The current ratio is below 1.0 (0.88), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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Frequently Asked Questions

Kyndryl Hldgs Inc (KD) reported $15.1B in total revenue for fiscal year 2026. This represents a 0.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Kyndryl Hldgs Inc (KD) revenue grew by 0.2% year-over-year, from $15.1B to $15.1B in fiscal year 2026.

Yes, Kyndryl Hldgs Inc (KD) reported a net income of $198.0M in fiscal year 2026, with a net profit margin of 1.3%.

Kyndryl Hldgs Inc (KD) reported diluted earnings per share of $0.85 for fiscal year 2026. This represents a -19.0% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

As of fiscal year 2026, Kyndryl Hldgs Inc (KD) had $2.6B in cash and equivalents against $3.9B in long-term debt.

Kyndryl Hldgs Inc (KD) had a gross margin of 21.8% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.

Kyndryl Hldgs Inc (KD) had a net profit margin of 1.3% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.

Kyndryl Hldgs Inc (KD) has a return on equity of 16.9% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.

Kyndryl Hldgs Inc (KD) generated $340.0M in free cash flow during fiscal year 2026. This represents a 0.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Kyndryl Hldgs Inc (KD) generated $948.0M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.

Kyndryl Hldgs Inc (KD) had $12.6B in total assets as of fiscal year 2026, including both current and long-term assets.

Kyndryl Hldgs Inc (KD) invested $608.0M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.

Kyndryl Hldgs Inc (KD) invested $57.0M in research and development during fiscal year 2026.

Yes, Kyndryl Hldgs Inc (KD) spent $304.0M on share buybacks during fiscal year 2026, returning capital to shareholders by reducing shares outstanding.

Kyndryl Hldgs Inc (KD) had 220M shares outstanding as of fiscal year 2026.

Kyndryl Hldgs Inc (KD) had a current ratio of 0.88 as of fiscal year 2026, which is below 1.0, which may suggest potential liquidity concerns.

Kyndryl Hldgs Inc (KD) had a debt-to-equity ratio of 3.32 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.

Kyndryl Hldgs Inc (KD) had a return on assets of 1.6% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.

Kyndryl Hldgs Inc (KD) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Kyndryl Hldgs Inc (KD) has an earnings quality ratio of 4.79x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Kyndryl Hldgs Inc (KD) scores 22 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

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