Kyndryl reports fiscal second-quarter profit growth and reaffirms outlook

Kyndryl reported its fiscal second-quarter results on November 4, 2026, with revenue of $3.651B, down 1.9% year over year, and adjusted EPS of $0.42. Adjusted EBITDA increased to $699M, while adjusted net income reached $92M. The company reaffirmed its fiscal 2027 outlook for adjusted pretax income of $600 to $700 million, free cash flow of $400 to $500 million, and constant-currency revenue flat to down 2%.

The results show stronger adjusted profitability despite lower reported revenue, while Kyndryl's unchanged outlook leaves its fiscal 2027 targets intact. The company expects workforce-rebalancing savings to begin in the second half of fiscal 2027, which could affect future operating expenses.

  • 1Kyndryl's fiscal second-quarter revenue was $3.651B, down 1.9% year over year.
  • 2Adjusted EPS was $0.42 and adjusted EBITDA was $699M.
  • 3Kyndryl reaffirmed fiscal 2027 adjusted pretax income guidance of $600 to $700 million and free cash flow guidance of $400 to $500 million.
  • 4The fiscal 2027 revenue outlook is flat to down 2% in constant currency.
  • 5Kyndryl completed its acquisition of Healthcare IT Leaders in mid-September.

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