Kyndryl Holdings, Inc. · NYSE:KD
Kyndryl — Q2 2026 Earnings Presentation
27 slides from Kyndryl's earnings presentation, Nov 5, 2025
Slide 1: Second Quarter 2026 Earnings
Second Quarter 2026 Earnings November 5, 2025
Slide 2: Disclaimers
Disclaimers Forward-looking statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements often contain words such as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “forec
Slide 3: Speakers
Speakers Lori Chaitman, Global Head of Investor Relations Martin Schroeter, Chairman and Chief Executive Officer David Wyshner, Chief Financial Officer 3
Slide 4: Executing a differentiated strategy
Executing a differentiated strategy 1 Driving profitable growth 2 Leveraging our leadership position 3 Accelerating our progress 4 Allocating capital to share buybacks Targeting full-year Capitalizing on our alliances, Growing Kyndryl Consult, Increasing repurchase revenue growth and innovation and
Slide 5: Driving growth through our mission-critical capabilities
Driving growth through our mission-critical capabilities Signings versus revenue Kyndryl Consult Hyperscaler-related (LTM book-to-bill) revenue revenue 5 quarters +32% +94% > 100% $3.4B $1.5B 105% 104% 100% $2.5B $0.8B $16.0B $15.6B signings signings LTM LTM LTM LTM LTM LTM Sept. 2024 Sept. 2025 Sep
Slide 6: Creating value for customers with unmatched delivery excellence
Creating value for customers with unmatched delivery excellence Kyndryl Bridge enhances IT Enterprise-grade agentic AI Driving business outcomes Delivering actionable, data-driven Integrating agents into our Enabling customers to invest and innovate insights and automations mission-critical solution
Slide 7: Setting the pace for sustainable growth through innovation
Setting the pace for sustainable growth through innovation Alliances Building solutions together to deliver customer outcomes Mission-critical Expanding scope and winning new logos through infrastructure expertise Kyndryl Consult Growth drivers Advising technology-first, industry-informed, AI-powere
Slide 8: Multiple factors driving demand for infrastructure modernization
Multiple factors driving demand for infrastructure modernization Deploying AI Mitigating operational to drive $1.5T business risk global ‘tech debt’ related to outcomes out-of-date and sub-optimal systems Meeting business and Modernization Addressing ‘tech debt’ 74% regulatory drivers and end-of- of
Slide 9: Leveraging our mission-critical agentic AI strategy for Kyndryl and customers
Leveraging our mission-critical agentic AI strategy for Kyndryl and customers The Kyndryl Agentic AI Framework Agent catalog and industry architectures • Advances customers’ AI investments from Agentic Agent isolated pilots into core operations ingestion Builder • State-of-the-art capabilities to or
Slide 10: Example: Kyndryl expands scope of work with financial services customer
Example: Kyndryl expands scope of work with financial services customer Leveraging alliances Cloud migration, enhanced security and global synergies Kyndryl Consult Modernization and AI-enablement, supported Displaced incumbent by Kyndryl Bridge in new geography Broad range of IT With incremental in
Slide 11: Focused on delivering an impactful 'triple, double, single'
Focused on delivering an impactful ‘triple, double, single’ Adjusted Adjusted pretax Sources of free cash flow income and margin our revenue $1.2B+ Pre-spin <10% $1B+ signings (lower-margin) 50% High- single- $446M $482M digit >90% margin 3.2% 50% Post-spin margin signings (higher-margin) FY25 FY28E
Slide 12: Focused on delivering an impactful 'triple, double, single'
Focused on delivering an impactful ‘triple, double, single’ Adjusted Adjusted pretax Sources of free cash flow income and margin our revenue $1.2B+ Pre-spin <10% $1B+ signings 33% (lower-margin) $725M+ 50% ~$550M High- single- $446M $482M digit >90% margin 67% 50% Post-spin 3.2% signings margin (hig
Slide 13: Financial highlights
Financial highlights Results reflect continued progress and consistent execution Growth strategy driving significant margin expansion Share repurchases powered by free cash flow Projecting substantial earnings growth again We design, build, manage and modernize the mission-critical systems that the
Slide 14: Fiscal second quarter 2026 financial results
Fiscal second quarter 2026 financial results ($ in millions) Quarter ended Quarter ended Sept. 30, 2025 Sept. 30, 2024 Strategic Markets United States Revenue $3,721 $3,774 $906 $899 Growth, in constant currency (3.7%) (6.8%) Up 3.1 pts Quarterly Adjusted EBITDA $641 $557 revenue by segment $581 Adj
Slide 15: Investment-grade balance sheet metrics and positive cash flow
Investment-grade balance sheet metrics and positive cash flow Free cash flow Balance sheet and cash flow metrics ($ in millions, three months ended Sept. 30) $1.3B $3.1B Cash Debt ($125) $193 ($25) $1.8B $4.5B Net debt Available liquidity2 ($145) $123 $147M $89M Cash flow from operations Shares repu
Slide 16: Strong projected margins on signings support our medium-term goals
Strong projected margins on signings support our medium-term goals Gross margin Gross profit book-to-bill 1 Pretax margin expected on post-spin signings expected on post-spin signings 1.5x 26% 26% 26% 1.2x 9% 9% 9% 1.1x Supports our high-single-digit margin target Fiscal Fiscal LTM Fiscal Fiscal LTM
Slide 17: Reaffirming our fiscal 2026 outlook
Reaffirming our fiscal 2026 outlook Fiscal 2026 outlook Adjusted pretax income At least $725 million, a year-over-year increase of at least 50% Adjusted EBITDA margin Approximately 18%, a year-over-year increase of approximately 130 basis points Free cash flow Approximately $550 million, reflecting
Slide 18: Poised to generate stronger fiscal second half 2026 revenue growth
Poised to generate stronger fiscal second half 2026 revenue growth Constant-currency revenue growth projection (year-over-year) Stronger pipeline and expanded Second half deal content 2026 outlook Hyperscaler-related ~2 points revenue growth Second half 4% – 5% 2026 outlook Kyndryl Consult ~2 points
Slide 19: Investment highlights
Investment highlights Leader in mission-critical enterprise technology services Innovative and differentiated approach to delivery with AI-powered Kyndryl Bridge Competitive advantage stemming from our people, data, expertise, scale and intellectual property Kyndryl Consult leverages our cus
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Slide 21: Our services
Our services Diversified sources Practice Overview Revenue of revenue Delivering seamless, integrated, multicloud management in a 34% Cloud hybrid model Technology, media Financial and telecom services Delivering full line of cybersecurity, business continuity and disaster 12% Security & 14% recover
Slide 22: Recent accolades and industry recognition
Recent accolades and industry recognition 2025 Google Cloud Global Partner of the Year 2025 Cloudflare Americas Systems Recognized as a Leader in the March 2025 Gartner® Award for Infrastructure Modernization Integrator Partner of the Year Magic Quadrant for Outsourced Digital Workplace Services, Gl
Slide 23: Fiscal second quarter 2026 adjusted pretax income and adjusted EBITDA
Fiscal second quarter 2026 adjusted pretax income and adjusted EBITDA ($ in millions) $20 $306 $641 $193 $26 ($1) $98 $123 Pretax Stock-based Other Intangibles Adjusted Depreciation Amortization Interest Adjusted Pretax income compensation adjustments amortization 1 and pretax expense 2 expense 3 ex
Slide 24: Fiscal second quarter 2026 adjusted EBITDA and free cash flow
Fiscal second quarter 2026 adjusted EBITDA and free cash flow ($ in millions) ($125) ($210) $641 ($19) ($25) ($241) $22 Adjusted Net capital Deferred Interest Cash taxes Working capital Free Adjusted EBITDA expenditures 1 costs 2, 3 paid paid (excl. deferred cash free flow cash flow costs) & other 3
Slide 25: Definitions and rationale for non-GAAP metrics
Definitions and rationale for non-GAAP metrics We present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe it enhances investors' visibility to management decisions and their impacts on operational
Slide 26: Reconciliation of non-GAAP metrics
Reconciliation of non-GAAP metrics ($ in millions, except per-share amounts) Three Three Reconciliation of adjusted pretax income months ended months ended to adjusted net income and adjusted EPS Sept. 30, 2025 Sept. 30, 2024 Adjusted pretax income (non-GAAP) $123 $45 Provision for income taxes (GAA
Slide 27: Reconciliation of non-GAAP metrics
Reconciliation of non-GAAP metrics ($ in millions, except per-share amounts) Reconciliation of net income Six Six Twelve Six Six Twelve Reconciliation of adjusted pretax income to adjusted pretax income months ended months ended months ended months ended months ended months ended to adjusted net inc