KYNDRYL REPORTS FIRST QUARTER FISCAL 2026 RESULTS
Kyndryl (NYSE: KD) reported strong financial results for Q1 fiscal 2026, with revenues of $3.74 billion and net income of $56 million ($0.23 per diluted share). The company demonstrated significant growth in key areas, with Kyndryl Consult revenues increasing 30% year-over-year and hyperscaler-related revenue reaching $400 million, up 86% from the previous year.
Notable achievements include $18.3 billion in trailing twelve-month signings (up 43% year-over-year) and the launch of an enterprise-grade agentic AI framework. The company reaffirmed its fiscal 2026 outlook, projecting adjusted pretax income of at least $725 million, an adjusted EBITDA margin of approximately 18%, and free cash flow of about $550 million.
Kyndryl (NYSE: KD) ha riportato risultati finanziari solidi per il primo trimestre dell'anno fiscale 2026, con ricavi pari a 3,74 miliardi di dollari e un utile netto di 56 milioni di dollari (0,23 dollari per azione diluita). L'azienda ha mostrato una crescita significativa in aree chiave, con i ricavi di Kyndryl Consult in aumento del 30% su base annua e i ricavi legati ai hyperscaler che hanno raggiunto 400 milioni di dollari, con un incremento dell'86% rispetto all'anno precedente.
I risultati degni di nota includono 18,3 miliardi di dollari in contratti firmati negli ultimi dodici mesi (in crescita del 43% su base annua) e il lancio di un framework AI agentico di livello enterprise. L'azienda ha confermato le previsioni per il 2026, prevedendo un reddito ante imposte rettificato di almeno 725 milioni di dollari, un margine EBITDA rettificato di circa il 18% e un flusso di cassa libero di circa 550 milioni di dollari.
Kyndryl (NYSE: KD) reportó sólidos resultados financieros para el primer trimestre del año fiscal 2026, con ingresos de 3.74 mil millones de dólares y una utilidad neta de 56 millones de dólares (0.23 dólares por acción diluida). La compañía mostró un crecimiento significativo en áreas clave, con los ingresos de Kyndryl Consult aumentando un 30% interanual y los ingresos relacionados con hyperscalers alcanzando 400 millones de dólares, un aumento del 86% respecto al año anterior.
Entre los logros destacados se encuentran 18.3 mil millones de dólares en contratos firmados en los últimos doce meses (un aumento del 43% interanual) y el lanzamiento de un marco de IA agentiva de nivel empresarial. La empresa reafirmó sus perspectivas para el año fiscal 2026, proyectando un ingreso ajustado antes de impuestos de al menos 725 millones de dólares, un margen EBITDA ajustado de aproximadamente el 18% y un flujo de caja libre de alrededor de 550 millones de dólares.
Kyndryl (NYSE: KD)은 2026 회계연도 1분기 강력한 재무 실적을 발표했으며, 매출은 37억 4천만 달러, 순이익은 5,600만 달러 (희석 주당 0.23달러)를 기록했습니다. 회사는 주요 분야에서 큰 성장을 보였으며, Kyndryl Consult 매출이 전년 대비 30% 증가했고 하이퍼스케일러 관련 매출은 4억 달러로 전년 대비 86% 상승했습니다.
주요 성과로는 최근 12개월간 체결 계약액이 183억 달러 (전년 대비 43% 증가)이며, 기업용 에이전틱 AI 프레임워크를 출시했습니다. 회사는 2026 회계연도 전망을 재확인하며 조정 전 세전 이익을 최소 7억 2,500만 달러, 조정 EBITDA 마진 약 18%, 자유 현금 흐름 약 5억 5,000만 달러로 예상했습니다.
Kyndryl (NYSE : KD) a annoncé de solides résultats financiers pour le premier trimestre de l'exercice 2026, avec un chiffre d'affaires de 3,74 milliards de dollars et un bénéfice net de 56 millions de dollars (0,23 dollar par action diluée). L'entreprise a montré une croissance significative dans des domaines clés, avec des revenus de Kyndryl Consult en hausse de 30 % sur un an et des revenus liés aux hyperscalers atteignant 400 millions de dollars, soit une augmentation de 86 % par rapport à l'année précédente.
Parmi les réalisations notables figurent 18,3 milliards de dollars de contrats signés au cours des douze derniers mois (en hausse de 43 % sur un an) et le lancement d'un cadre d'IA agentique de niveau entreprise. L'entreprise a confirmé ses prévisions pour l'exercice 2026, prévoyant un résultat avant impôts ajusté d'au moins 725 millions de dollars, une marge EBITDA ajustée d'environ 18 % et un flux de trésorerie disponible d'environ 550 millions de dollars.
Kyndryl (NYSE: KD) meldete starke Finanzergebnisse für das erste Quartal des Geschäftsjahres 2026 mit einem Umsatz von 3,74 Milliarden US-Dollar und einem Nettogewinn von 56 Millionen US-Dollar (0,23 US-Dollar je verwässerter Aktie). Das Unternehmen verzeichnete erhebliches Wachstum in wichtigen Bereichen, wobei die Umsätze von Kyndryl Consult um 30 % im Jahresvergleich stiegen und die hyperscaler-bezogenen Umsätze 400 Millionen US-Dollar erreichten, ein Anstieg von 86 % gegenüber dem Vorjahr.
Zu den bemerkenswerten Erfolgen zählen 18,3 Milliarden US-Dollar an Vertragsabschlüssen in den letzten zwölf Monaten (ein Anstieg von 43 % im Jahresvergleich) und die Einführung eines unternehmensgerechten agentischen KI-Rahmens. Das Unternehmen bestätigte seine Prognose für das Geschäftsjahr 2026 und erwartet ein bereinigtes Vorsteuerergebnis von mindestens 725 Millionen US-Dollar, eine bereinigte EBITDA-Marge von etwa 18 % und einen freien Cashflow von rund 550 Millionen US-Dollar.
- Net income increased significantly to $56 million ($0.23 per share) from $11 million ($0.05 per share) year-over-year
- Kyndryl Consult revenue grew 30% year-over-year with 36% growth in signings over last 12 months
- Hyperscaler-related revenue increased 86% year-over-year to $400 million
- Trailing twelve-month signings up 43% to $18.3 billion
- High single-digit projected pretax margin on recent signings
- Active share repurchase program with 1.8 million shares bought for $65 million in Q1
- Revenue declined 2.6% in constant currency
- Negative operating cash flow of $124 million in Q1
- Negative free cash flow of $222 million due to seasonal outflows
Insights
Kyndryl's Q1 shows solid earnings growth and margin improvement while maintaining steady progress on strategic initiatives despite flat revenue.
Kyndryl's Q1 fiscal 2026 results demonstrate encouraging progress in its transformation journey, particularly in profitability metrics, despite modest top-line performance. The company reported
Pretax income jumped
The company's strategic initiatives appear to be gaining traction. Their "three-A's" strategy (Alliances, Advanced Delivery, Accounts) is yielding measurable results. Particularly noteworthy is the
The quality of new business also appears strong, with signings over the past twelve months totaling
While seasonal factors led to negative free cash flow of
The capital allocation strategy includes ongoing share repurchases, with
Overall, while revenue growth remains a challenge, Kyndryl is effectively executing on margin improvement and strategic initiatives, positioning the company for more balanced performance as their transformation continues.
- Revenues for the quarter ended June 30, 2025 total
$3.74 billion $92 million $56 million - Adjusted EBITDA is
$647 million $128 million $90 million - Kyndryl Consult delivers double-digit revenue growth in the quarter and over the last twelve months
- Company reaffirms fiscal 2026 outlook for revenue, earnings and free cash flow
"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," said Chairman and Chief Executive Officer Martin Schroeter.
"We continue to focus on providing outstanding, innovative and expanded services to our customers, and on achieving our fiscal 2026 and multi-year objectives. We're also reinvesting in our growth initiatives and returning capital to shareholders through our share repurchase program."
Results for the Fiscal First Quarter Ended June 30, 2025
For the first quarter, Kyndryl reported revenues of
Adjusted pretax income was
Signings for the trailing twelve months were
"We continued to make strategic and financial progress in the quarter, highlighted by our increased earnings and the attractive margins built into our signings. This underscores how Kyndryl Consult and our mission-critical services align with secular trends, address our customers' evolving technology needs and deliver measurable business outcomes," said David Wyshner, Kyndryl's Chief Financial Officer.
Recent Developments
- Hyperscaler-related revenue – In the first quarter, as part of Kyndryl's Alliances initiative, the Company generated
$400 million 86% year-over-year increase, and is progressing well toward its hyperscaler revenue target of$1.8 billion - Strong projected margin on recent signings – In the quarter, the projected pretax margin associated with signings was in the high-single-digit range, in line with recent quarters, demonstrating the Company's value.
- Double-digit growth in Kyndryl Consult – In the first quarter, Kyndryl Consult revenues grew
30% year-over-year. Kyndryl Consult signings have grown36% over the last twelve months. - Incremental contribution from three-A's initiatives – The Company's Advanced Delivery initiative, focused on AI-enabled automation through our Kyndryl Bridge operating platform, and its Accounts initiative to address relationships with substandard margins continued to drive earnings growth and margin expansion in the quarter.
- Launched Kyndryl Agentic AI Framework – In July, the Company launched an enterprise-grade agentic AI framework that enables customers to adopt, deploy and scale agentic AI solutions on-premises, in the cloud or in a hybrid IT setting.
- Share repurchases – The Company repurchased 1.8 million shares of its common stock at a cost of
$65 million $300 million
Reaffirms Fiscal Year 2026 Outlook
Kyndryl reaffirms its outlook for its fiscal 2026, which runs from April 2025 to March 2026:
- Adjusted pretax income of at least
$725 million $243 million - Adjusted EBITDA margin of approximately
18% , representing a year-over-year increase of approximately 130 basis points. - Free cash flow of approximately
$550 million $175 million - Constant-currency revenue growth of
1% .
Earnings Webcast
Kyndryl's earnings call for the first fiscal quarter is scheduled to begin at 8:30 a.m. ET on August 5, 2025. The live webcast can be accessed by visiting investors.kyndryl.com on Kyndryl's investor relations website. A slide presentation will be made available on Kyndryl's investor relations website before the call on August 5, 2025. Following the event, a replay will be available via webcast for twelve months at investors.kyndryl.com.
About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements concerning the Company's plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, including without limitation the outlook and financial objectives in this press release (which does not assume any future acquisitions or divestitures), are forward-looking statements. Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "objectives," "opportunity," "plan," "position," "predict," "project," "should," "seek," "target," "will," "would" and other similar words or expressions or the negative thereof or other variations thereon. Forward-looking statements are based on the Company's current assumptions and beliefs regarding future business and financial performance.
The Company's actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others: failure to attract new customers, retain existing customers or sell additional services to customers; failure to meet growth and productivity objectives and maintain our capital allocation strategy; competition; impacts of relationships with critical suppliers and partners; failure to address and adapt to technological developments and trends; inability to attract and retain key personnel and other skilled employees; impact of economic, geopolitical, public health and other conditions; damage to the Company's reputation; inability to accurately estimate the cost of services and the timeline for completion of contracts; service delivery issues; the Company's ability to successfully manage acquisitions and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt levels; failure of the Company's intellectual property rights to prevent competitive offerings and the failure of the Company to obtain, retain and extend necessary licenses; the impairment of our goodwill or long-lived assets; risks relating to cybersecurity, data governance and privacy; risks relating to non-compliance with legal and regulatory requirements; adverse effects from tax matters; legal proceedings and investigatory risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; the Company's pension plans; the impact of currency fluctuations; and risks related to the Company's common stock and the securities market.
Additional risks and uncertainties include, among others, those risks and uncertainties described in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025, and may be further updated from time to time in the Company's subsequent filings with the Securities and Exchange Commission. Any forward-looking statement in this press release speaks only as of the date on which it is made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In this release, certain amounts may not add due to the use of rounded numbers; percentages presented are calculated based on the underlying amounts. Forecasted amounts are based on currency exchange rates as of July 2025.
Non-GAAP Financial Measures
In an effort to provide investors with additional information regarding its results, the Company has provided certain metrics that are not calculated based on generally accepted accounting principles (GAAP), such as constant-currency results, adjusted EBITDA, adjusted pretax income, adjusted net income, adjusted EPS, adjusted EBITDA margin, adjusted pretax margin, adjusted net margin, net debt, free cash flow and adjusted free cash flow. Such non-GAAP metrics are intended to supplement GAAP metrics, but not to replace them. The Company's non-GAAP metrics may not be comparable to similarly titled metrics used by other companies. Definitions of non-GAAP metrics and reconciliations of non-GAAP metrics for historical periods to GAAP metrics are included in the tables in this release.
A reconciliation of forward-looking non-GAAP financial information is not included in this release because the Company is unable to predict with reasonable certainty some individual components of such reconciliation without unreasonable effort. These items are uncertain, depend on various factors and could have a material impact on future results computed in accordance with GAAP.
Investor Contact:
investors@kyndryl.com
Media Contact:
press@kyndryl.com
Table 1
CONSOLIDATED INCOME STATEMENT (in millions, except per share amounts)
| ||||||
Three Months Ended June 30, | ||||||
2025 | 2024 | |||||
Revenues | $ | 3,743 | $ | 3,739 | ||
Cost of services | $ | 2,947 | $ | 2,934 | ||
Selling, general and administrative expenses | 646 | 657 | ||||
Workforce rebalancing charges | 25 | 36 | ||||
Transaction-related costs | — | 20 | ||||
Interest expense | 19 | 28 | ||||
Other expense | 13 | — | ||||
Total costs and expenses | $ | 3,651 | $ | 3,675 | ||
Income before income taxes | $ | 92 | $ | 64 | ||
Provision for income taxes | 36 | 53 | ||||
Net income | $ | 56 | $ | 11 | ||
Earnings per share data | ||||||
Basic earnings per share | $ | 0.24 | $ | 0.05 | ||
Diluted earnings per share | 0.23 | 0.05 | ||||
Weighted-average basic shares outstanding | 230.2 | 230.5 | ||||
Weighted-average diluted shares outstanding | 239.1 | 235.8 | ||||
Table 2 SEGMENT RESULTS AND SELECTED BALANCE SHEET INFORMATION (dollars in millions) | ||||||||||
Three Months Ended June 30, | Year-over-Year Growth | |||||||||
As | Constant | |||||||||
Segment Results | 2025 | 2024 | Reported | Currency | ||||||
Revenue | ||||||||||
$ | 911 | $ | 986 | (8 %) | (8 %) | |||||
578 | 569 | 2 % | (6 %) | |||||||
Principal Markets | 1,356 | 1,315 | 3 % | (1 %) | ||||||
Strategic Markets | 898 | 869 | 3 % | 3 % | ||||||
Total revenue | $ | 3,743 | $ | 3,739 | 0 % | (3 %) | ||||
Adjusted EBITDA | ||||||||||
$ | 196 | $ | 133 | |||||||
115 | 83 | |||||||||
Principal Markets | 197 | 241 | ||||||||
Strategic Markets | 163 | 120 | ||||||||
Corporate and other | (26) | (21) | ||||||||
Total adjusted EBITDA | $ | 647 | $ | 556 | ||||||
June 30, | March 31, | |||||||||
Balance Sheet Data | 2025 | 2025 | ||||||||
Cash and equivalents | $ | 1,462 | $ | 1,786 | ||||||
Debt (short-term and long-term) | 3,141 | 3,172 | ||||||||
Table 3 CONSOLIDATED STATEMENT OF CASH FLOWS (dollars in millions) | ||||||
Three Months Ended June 30, | ||||||
2025 | 2024 | |||||
Cash flows from operating activities: | ||||||
Net income | $ | 56 | $ | 11 | ||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||
Depreciation and amortization | ||||||
Depreciation of property, equipment and capitalized software | 191 | 127 | ||||
Depreciation of right-of-use assets | 73 | 70 | ||||
Amortization of transition costs and prepaid software | 308 | 310 | ||||
Amortization of capitalized contract costs | 106 | 107 | ||||
Amortization of acquisition-related intangible assets | 7 | 7 | ||||
Stock-based compensation | 24 | 24 | ||||
Deferred taxes | (10) | 17 | ||||
Net (gain) loss on asset sales and other | — | 27 | ||||
Change in operating assets and liabilities: | ||||||
Right-of-use assets and liabilities (excluding depreciation) | (88) | (65) | ||||
Workforce rebalancing liabilities | 3 | 7 | ||||
Receivables | 46 | 163 | ||||
Accounts payable | (269) | (122) | ||||
Taxes | 27 | (9) | ||||
Deferred costs (excluding amortization)1 | (1,381) | (363) | ||||
Other assets and other liabilities1 | 781 | (358) | ||||
Net cash provided by (used in) operating activities | $ | (124) | $ | (48) | ||
Cash flows from investing activities: | ||||||
Capital expenditures | $ | (143) | $ | (122) | ||
Proceeds from disposition of property and equipment | 45 | 24 | ||||
Acquisitions and divestitures, net of cash acquired | 1 | (46) | ||||
Other investing activities, net | 22 | (22) | ||||
Net cash used in investing activities | $ | (74) | $ | (166) | ||
Cash flows from financing activities: | ||||||
Debt repayments | $ | (36) | $ | (38) | ||
Common stock repurchases | (62) | — | ||||
Common stock repurchases for tax withholdings | (67) | (7) | ||||
Other financing activities, net | (5) | (6) | ||||
Net cash used in financing activities | $ | (170) | $ | (51) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | $ | 46 | $ | (17) | ||
Net change in cash, cash equivalents and restricted cash | $ | (323) | $ | (281) | ||
Cash, cash equivalents and restricted cash at beginning of period | $ | 1,789 | $ | 1,554 | ||
Cash, cash equivalents and restricted cash at end of period | $ | 1,466 | $ | 1,273 | ||
Supplemental data | ||||||
Income taxes paid, net of refunds received | $ | 67 | $ | 54 | ||
Interest paid on debt | $ | 39 | $ | 40 | ||
_________________________ | |
1 | Includes |
Table 4
NON-GAAP METRIC DEFINITIONS AND RECONCILIATIONS
(dollars in millions, except signings)
We report our financial results in accordance with GAAP. We also present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe it enhances investors' visibility to management decisions and their impacts on operational performance; enables better comparison to peer companies; and allows us to provide a long-term strategic view of the business going forward. Moreover, we use certain of these non-GAAP financial metrics in measuring performance under our executive compensation plans.
Constant-currency information compares results between periods as if exchange rates had remained constant period over period. We define constant-currency revenues as total revenues excluding the impact of foreign exchange rate movements and use it to determine the constant-currency revenue growth on a year-over-year basis. Constant-currency revenues are calculated by translating current period revenues using corresponding prior-period exchange rates.
Adjusted pretax income is defined as pretax income excluding transaction-related costs and benefits, charges related to ceasing to use leased / fixed assets, charges related to lease terminations, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, amortization of acquisition-related intangible assets, workforce rebalancing charges incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries. Adjusted pretax margin is calculated by dividing adjusted pretax income by revenue.
Adjusted EBITDA is defined as net income (loss) excluding net interest expense, income taxes, depreciation and amortization (excluding depreciation of right-of-use assets and amortization of capitalized contract costs), charges related to ceasing to use leased / fixed assets, charges related to lease terminations, transaction-related costs and benefits, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, workforce rebalancing charges incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
Adjusted net income is defined as adjusted pretax income less the reported provision for income taxes, minus or plus the tax effect of the non-GAAP adjustments made to calculate adjusted pretax income, and excluding exceptional items impacting the reported provision for income taxes. Adjusted net margin is calculated by dividing adjusted net income by revenue.
Adjusted earnings per share (EPS) is defined as adjusted net income divided by diluted weighted average shares outstanding to reflect shares that are dilutive or anti-dilutive based on the amount of adjusted net income. The weighted average common shares outstanding used to calculate adjusted earnings (loss) per share will differ from such shares used to calculate diluted earnings (loss) per share (GAAP) when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other.
Free Cash Flow is defined as cash flows from operating activities (GAAP), less net capital expenditures. Adjusted free cash flow is defined as cash flows from operating activities (GAAP) after adding back transaction-related payments, charges related to lease terminations, payments related to workforce rebalancing charges incurred prior to March 31, 2024, and significant litigation payments, less net capital expenditures. Management uses free cash flow and adjusted free cash flow as measures to evaluate our operating results, plan strategic investments and assess our ability and need to incur and service debt. We believe these metrics are useful supplemental financial measures to aid investors in assessing our ability to pursue business opportunities and investments and to service our debt. Free cash flow and adjusted free cash flow are financial measures that are not recognized under
Signings are defined by Kyndryl as an initial estimate of the value of a customer's commitment under a contract. The calculation involves estimates and judgments to gauge the extent of a customer's commitment. We calculate this based on various considerations including the type and duration of the agreement as well as the presence of termination charges or wind-down costs. Contract extensions and increases in scope are treated as signings only to the extent of the incremental new value. Signings can vary over time due to a variety of factors including, but not limited to, the timing of signing a small number of larger outsourcing contracts, as well as the length of those contracts. The conversion of signings into revenue may vary based on the types of services and solutions, customer decisions and other factors, which may include, but are not limited to, macroeconomic environment or external events. Management uses signings to monitor the performance of the business, as a measure of customer engagement and our ability to drive growth.
Reconciliation of net income | ||||||
to adjusted pretax income, | ||||||
adjusted EBITDA, adjusted net | ||||||
income and adjusted EPS | Three Months Ended June 30, | |||||
(in millions, except per share amounts) | 2025 | 2024 | ||||
Net income (GAAP) | $ | 56 | $ | 11 | ||
Provision for income taxes | 36 | 53 | ||||
Pretax income (GAAP) | $ | 92 | $ | 64 | ||
Charges related to ceasing to use leased/fixed assets and lease terminations | — | 9 | ||||
Transaction-related costs | — | 20 | ||||
Stock-based compensation expense | 24 | 24 | ||||
Amortization of acquisition-related intangible assets | 7 | 7 | ||||
Other adjustments1 | 5 | (32) | ||||
Adjusted pretax income (non-GAAP) | $ | 128 | $ | 92 | ||
Interest expense | 19 | 28 | ||||
Depreciation of property, equipment and capitalized software | 191 | 127 | ||||
Amortization of transition costs and prepaid software | 308 | 310 | ||||
Adjusted EBITDA (non-GAAP) | $ | 647 | $ | 556 | ||
Net income margin | 1.5 % | 0.3 % | ||||
Adjusted EBITDA margin | 17.3 % | 14.9 % | ||||
Adjusted pretax income (non-GAAP) | $ | 128 | $ | 92 | ||
Provision for income taxes (GAAP) | (36) | (53) | ||||
Tax effect of non-GAAP adjustments | (3) | (8) | ||||
Adjusted net income (non-GAAP) | $ | 90 | $ | 31 | ||
Diluted weighted average shares outstanding for calculating adjusted EPS | 239.1 | 235.8 | ||||
Diluted earnings per share (GAAP) | $ | 0.23 | $ | 0.05 | ||
Adjusted earnings per share (non-GAAP) | $ | 0.37 | $ | 0.13 | ||
_________________________ | |
1 | Other adjustments represent pension costs other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, and currency impacts of highly inflationary countries. |
Reconciliation of cash flows from operations | ||||||
to free cash flow and | Three Months Ended June 30, | |||||
adjusted free cash flow (in millions) | 2025 | 2024 | ||||
Cash flows from operating activities (GAAP) | $ | (124) | $ | (48) | ||
Less: Net capital expenditures | (97) | (98) | ||||
Free cash flow (non-GAAP) | $ | (222) | $ | (145) | ||
Plus: Transaction-related payments (benefits) | — | 5 | ||||
Plus: Workforce rebalancing payments related to charges incurred prior to March 31, 2024 | — | 21 | ||||
Plus: Significant litigation payments | — | 4 | ||||
Plus: Payments related to lease terminations | — | — | ||||
Adjusted free cash flow (non-GAAP) | $ | (222) | $ | (116) | ||
Three Months Ended June 30, | Last Twelve Months Ended June 30, | |||||||||||
Signings (in billions) | 2025 | 2024 | 2025 | 2024 | ||||||||
Signings1 | $ | 3.2 | $ | 3.1 | $ | 18.3 | $ | 12.8 | ||||
_________________________ | |
1 | Signings for the three months ended June 30, 2025 increased by |
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SOURCE Kyndryl
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