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Kyndryl Hldgs Inc Financials

KD
Source SEC Filings (10-K/10-Q) Data as of 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 15 / 100
Financial Health Score 15/100

Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. 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
22

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 22/100.

Leverage
18

Kyndryl Hldgs Inc has elevated debt relative to equity (D/E of 3.32), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 18/100, reflecting increased financial risk.

Liquidity
14

Kyndryl Hldgs Inc's current ratio of 0.88 is below the typical benchmark, resulting in a score of 14/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow
34

Kyndryl Hldgs Inc has a free cash flow margin of 2.3%, earning a moderate score of 34/100. The company generates positive cash flow after capital investments, but with room for improvement.

Piotroski F-Score Partial
4/8

Kyndryl Hldgs Inc passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 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
5.12x

For every $1 of reported earnings, Kyndryl Hldgs Inc generates $5.12 in operating cash flow ($948.0M OCF vs $185.0M 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
$185.0M
YoY-26.6%

Kyndryl Hldgs Inc reported $185.0M in net income in fiscal year 2026. This represents a decrease of 26.6% 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
1.2%
YoY-0.4pp
5Y CAGR+11.6pp

Kyndryl Hldgs Inc's net profit margin was 1.2% 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
15.7%
YoY-4.9pp
5Y CAGR+56.5pp

Kyndryl Hldgs Inc's ROE was 15.7% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 4.9 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 $4.0M-93.0% $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 0.1%-1.4pp 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 0.3%-4.4pp 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 0.0%-0.5pp 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 $185.0M in fiscal year 2026, with a net profit margin of 1.2%.

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 1.2% 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 15.7% 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 1.5% 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 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 5.12x, 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 15 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.

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