Kyndryl Reports Stable Financial Performance with $15.1 Billion Revenue for Fiscal Year Ending March 31, 2026

Kyndryl Holdings, Inc. reported a stable financial performance for the fiscal year ending March 31, 2026, with total revenue of $15.1 billion, a slight increase from $15.1 billion in the previous year. The company experienced a net income of $198 million, down from $252 million in the prior year, primarily due to a significant gain from the sale of its Securities Industry Services platform in Canada in the previous fiscal year. Adjusted EBITDA rose to $2.67 billion, reflecting a 6% increase from $2.52 billion in the previous year, driven by operational efficiencies and cost management initiatives.

In terms of operational changes, Kyndryl has been focusing on enhancing its service offerings and customer relationships. The company reported a 26% decrease in total signings to $13.5 billion, attributed to lengthening sales cycles and evolving customer needs. The company has also been actively managing its workforce, incurring $60 million in workforce rebalancing charges during the fiscal year, as part of its strategy to streamline operations and improve efficiency. As of March 31, 2026, Kyndryl employed approximately 72,000 individuals across 60 countries, with a significant portion of its workforce based outside the U.S.

Geographically, Kyndryl's revenue performance varied across its segments. The United States segment saw a 2% decline in revenue to $3.8 billion, while Japan's revenue decreased by 3% to $2.3 billion. Conversely, the Principal Markets segment reported a 4% increase in revenue to $5.4 billion, and the Strategic Markets segment remained stable at $3.6 billion. The company continues to derive a significant portion of its revenue from the financial services sector, which accounted for approximately 45% of total revenue.

Looking ahead, Kyndryl has outlined a strategic focus on enhancing its cloud services and AI capabilities, aiming to support customers in their digital transformation journeys. The company is also addressing material weaknesses in its internal controls over financial reporting, as identified in its recent filings. Management has initiated a comprehensive remediation plan to strengthen its control environment and improve disclosure processes. The company remains optimistic about its growth prospects, despite the challenges posed by macroeconomic conditions and evolving market dynamics.