Kyndryl Reports 3% Revenue Growth to $3.859 Billion, Net Income Declines to $57 Million

Kyndryl Holdings, Inc. reported its financial results for the three and nine months ended December 31, 2025, revealing a revenue increase of 3% to $3.859 billion for the quarter, compared to $3.744 billion in the same period last year. For the nine months, revenue rose 1% to $11.323 billion from $11.257 billion. However, net income for the quarter fell significantly to $57 million, down from $215 million a year earlier, largely due to a prior-year gain from the sale of its Securities Industry Services platform. The company’s diluted earnings per share were $0.25, compared to $0.89 in the previous year.

The financial performance reflects a mixed operational landscape. While revenue growth was noted in the Principal Markets segment, which saw a 10% increase, the United States and Japan segments experienced declines of 0% and 2%, respectively. The company attributed the overall revenue growth to favorable currency exchange rates and increased demand for Kyndryl Consult and hyperscaler-related services, although these gains were offset by lengthening sales cycles and rising labor costs. Adjusted EBITDA for the quarter was $696 million, a slight decrease from $704 million in the prior year.

In terms of strategic developments, Kyndryl announced its agreement to acquire Solvinity Group B.V., a managed cloud services provider in the Netherlands, for approximately €100 million, expected to close in the first half of 2026. The company also completed the sale of its SIS platform in Canada in November 2024, which contributed to a significant gain in the previous fiscal period. Kyndryl's workforce rebalancing initiatives continue, with charges of $16 million recorded in the latest quarter as part of a broader effort to enhance operational efficiency.

Operationally, Kyndryl reported a total asset increase to $11.276 billion, up from $10.452 billion at the end of March 2025, driven by higher deferred costs and operating right-of-use assets. Total liabilities also rose to $9.967 billion, reflecting increased noncurrent liabilities associated with the amended software agreement. The company’s equity decreased slightly to $1.309 billion, impacted by share repurchases totaling $254 million during the period.

Looking ahead, Kyndryl anticipates continued challenges in the macroeconomic environment, including geopolitical tensions and trade uncertainties, which may affect customer engagement and revenue growth. The company remains focused on improving operational efficiencies and managing costs, with expectations of further workforce rebalancing charges in the future. Kyndryl's management expressed confidence in its ability to navigate these challenges while pursuing strategic growth initiatives.