Kyndryl Q2 FY27 slides: margins expand as AI modernization drives signings

Kyndryl (KD) reported Q2 2026 net income of $59M ($0.27/share), down from $68M ($0.29/share) a year ago. Adjusted net income rose to $92M ($0.42/share) from $89M ($0.38/share). Revenue fell to $3.651B from $3.721B, while adjusted EBITDA increased to $699M from $641M. Shares rose 35.16% to $17.49 on the NYSE.

Kyndryl Holdings Inc. shares rose 26% after reporting better-than-expected adjusted earnings of 42 cents per share, strong contract signings, and reaffirming its fiscal 2027 outlook. Revenue was $3.7 billion, down 1.9% year over year. The company's market value reached $3.6 billion, though the stock is still down 50% from a year ago. Management highlighted growth in Consult and hyperscaler-related revenue, and the U.S. business was a standout.

Kyndryl (KD) reported Q3 CY2026 revenue of $3.65B, down 1.9% YoY, meeting estimates. Adjusted EPS of $0.42 beat expectations by 10%. The stock rose 11.2% post-results. Analysts project flat revenue growth and 164% EPS growth over the next 12 months.

Kyndryl reported Q2 2027 revenue of $3.651B, down 1.9% YoY, and adjusted EPS of $0.42. Net income was $59M, up from $68M YoY. Adjusted EBITDA rose to $699M. The company reaffirmed its fiscal 2027 outlook and completed a healthcare IT acquisition.

Kyndryl Holdings, Inc. (KD) filed an SEC Form 8-K — Results of Operations and Financial Condition. ​ ​ ​ Exhibit 99.1 ​ ​ KYNDRYL REPORTS SECOND QUARTER FISCAL 2027 RESULTS ​ ● Revenues for the quarter ended September 30, 2026 total $3.7 billion, pretax income is $112 million, and net income is $59 million ​ ● Adjusted EBITDA is $699 million, adjusted pretax income is $150 mil

Kyndryl reported Q2 Non-GAAP EPS of $0.42, exceeding estimates by $0.04, with revenue of $3.7B, up $80M from expectations. The company maintained its FY2027 outlook, citing AI-driven revenue growth as a key factor.