Kyndryl Misses Q1 Estimates, Books $152M in Job-Cut Charges
KD sits 42% above its 52-week low of $10.1.
Summary
Kyndryl missed Q1 FY2027 revenue and earnings estimates, reporting $3.62B in revenue versus the $3.64B consensus and a pretax loss of $69M, wider than the expected $61.5M. The miss was driven by a 7% revenue decline in its Principal Markets segment and $152M in workforce rebalancing charges tied to a plan targeting $400M-$500M in annual cost savings by fiscal 2028. Shares fell 2.7% premarket. The company reaffirmed its full-year outlook for adjusted pretax income of $600M-$700M and free cash flow of $400M-$500M, signaling confidence in the restructuring's long-term benefits despite near-term headwinds. This follows a series of strategic partnerships and an adverse auditor opinion on internal controls disclosed in May.
At the time of this announcement, KD was trading at $14.33 on NYSE in the Technology sector, with a market capitalization of approximately $3.2B. The 52-week trading range was $10.10 to $37.01. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.