Kyndryl reported second quarter revenue of $3.62 billion, missing analyst estimates of $3.64 billion and declining 3.3% year-on-year, while adjusted EPS of -$0.12 beat expectations of -$0.17. Adjusted EBITDA came in at $512 million versus estimates of $460.6 million, with an operating margin of -1.2% compared to 3.3% a year earlier. CEO Martin Schroeter attributed the revenue shortfall to ongoing headwinds in legacy focus accounts and customers increasingly procuring IBM hardware and software directly, while citing positive momentum in Kyndryl Consult and hyperscaler partnerships. During the earnings call, analysts questioned management on Consult segment growth assumptions, European market headwinds, workforce reskilling, new logo wins, and mainframe modernization opportunities.
Kyndryl Holdings IncQ2 revenue missed estimates and declined 3.3% YoY, with operating margin down to -1.2%.
International Business Machines