Kyndryl Holdings, Inc. · NYSE:KD
Kyndryl — Q1 2027 Earnings Presentation
19 slides from Kyndryl's earnings presentation, Aug 5, 2026
Slide 1: First Quarter 2027 Earnings
First Quarter 2027 Earnings August 5, 2026
Slide 2: Disclaimers
Disclaimers Forward-looking statements This presentation and the related conference call contain “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
Slide 3: Speakers
Speakers Lori Chaitman, Global Head of Investor Relations Martin Schroeter, Chairman and Chief Executive Officer Harsh Chugh, Interim Chief Financial Officer 3
Slide 4: Executing a differentiated strategy in a rapidly changing market
Executing a differentiated strategy in a rapidly changing market 1 Driving profitable growth 2 Leveraging our leadership position 3 Progressing on key initiatives 4 Focusing on growth areas Targeting consistent Capitalizing on our alliances, Growing Kyndryl Consult, Investing in Consult, revenue gro
Slide 5: Signposts to fiscal 2028
Signposts to fiscal 2028 Signpost Exiting FY26 Drivers in FY27 outlook Q1 progress Backlog trajectory entering year 5-point improvement Signings performance and mix Kyndryl Consult signings > revenue $4B signings, $3.5B revenue Consult capacity and productivity improvement Hyperscaler-related revenu
Slide 6: Driving growth through our mission-critical capabilities
Driving growth through our mission-critical capabilities Kyndryl Consult Hyperscaler-related Signposts highlights revenue1 revenue1 • Strength in Kyndryl Consult and hyperscaler- related revenue streams driven by demand for +14% +48% AI-led modernization • Kyndryl Consult LTM signings of $4.4B $3.6B
Slide 7: Kyndryl's differentiated agentic AI solutions accelerate customers' modernization
Kyndryl’s differentiated agentic AI solutions accelerate customers’ modernization Customers turn to Kyndryl Our expanding agentic capabilities for business outcomes Services-as-software Faster, consistent, scalable implementation Scaling modernization with pre-defined agentic workflows that adapt
Slide 8: AI-led modernization customer wins
AI-led modernization customer wins Global payments company Leading financial institution Global technology company 20-year relationship 13-year relationship New Logo Approach Application-led Business transformation-led Application-led Improve ROI, predictability and agility of Accelerate IT and busi
Slide 9: Fiscal first quarter 2027 financial results
Fiscal first quarter 2027 financial results ($ in millions) Quarter ended Quarter ended June 30, 2026 June 30, 2025 Strategic Revenue $3,618 $3,743 Markets United States Growth in constant currency (3%) (3%) $868 $954 Quarterly Adjusted EBITDA $512 $647 revenue by segment Adjusted EBITDA margin 14.2
Slide 10: Our partnership with IBM continues to evolve
Our partnership with IBM continues to evolve Year-over-year revenue trends Evolving IBM content had ~3 point unfavorable impact on revenue performance* Primarily driven by our Similar trends for LTM June 2026 Focus Accounts (3%) initiative (4%) Reported constant currency revenue performance (6%) FY2
Slide 11: Cash flow seasonality and investment-grade balance sheet
Cash flow seasonality and investment-grade balance sheet Free cash flow Investment-grade balance sheet ($ in millions, three months ended June 30, 2026) (as of June 30, 2026) ($ in millions, three months ended June 30) $183 ($91) $2.1B $4.3B Cash Available liquidity3 ($37) ($381) ($401) $2.0B 0.8x N
Slide 12: Strong projected margins on signings support our goals
Strong projected margins on signings support our 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% 9% 25% 1.1x 8% 8% 1.0x Supports our high-single-digit margin target FY25 FY26 LTM FY25 FY26 LTM FY25 FY26 LTM June
Slide 13: Reaffirming our fiscal 2027 outlook
Reaffirming our fiscal 2027 outlook Fiscal 2027 outlook Adjusted pretax income $600 to $700 million Free cash flow 1 $400 to $500 million Revenue Constant-currency flat to down 2% year-over-year Focused on delivering innovation, expanding margins and growing revenue Outlook assumes adjusted EBITDA m
Slide 14: Slide 14
Slide 15: Recent accolades and industry recognition
Recent accolades and industry recognition 2026 Google Cloud Global Partner of the Year 2026 Dell Strategic Impact GSI Partner of the Kyndryl named a Customers' Choice in Gartner® Peer Award for Infrastructure Modernization Year – North America Insights “Voice of the Customer” for Outsourced Digital
Slide 16: Fiscal first quarter 2027 adjusted pretax income and adjusted EBITDA
Fiscal first quarter 2027 adjusted pretax income and adjusted EBITDA ($ in millions) $34 $331 $512 $183 $21 $12 ($37) ($69) ($38) $38 Pretax Stock-based Transaction-related Impairment Intangibles Adjusted Depreciation Amortization Interest Adjusted income (loss) compensaton costs 1 expense 2 amortiz
Slide 17: Fiscal first quarter 2027 adjusted EBITDA and free cash flow
Fiscal first quarter 2027 adjusted EBITDA and free cash flow ($ in millions) ($ in millions, three months ended June 30th) ($91) $512 ($353) ($50) ($76) ($401) ($343) Adjusted Net capital Deferred Interest Cash taxes Working capital Free EBITDA expenditures1 costs 2 paid paid (excl. deferred cash Fl
Slide 18: Definitions and rationale for non-GAAP metrics
Definitions and rationale for non-GAAP metrics We present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe it enhances investors' visibility to management decisions and their impacts on operational
Slide 19: Reconciliation of non-GAAP metrics
Reconciliation of non-GAAP metrics ($ in millions, except per-share amounts) Reconciliation of adjusted pretax income Three months ended Three months ended to adjusted net income and adjusted EPS June 30, 2026 June 30, 2025 Adjusted pretax income (loss) (non-GAAP) ($37) $128 Provision for income tax