Kyndryl Holdings, Inc. · NYSE:KD
Kyndryl — Q4 2026 Earnings Presentation
23 slides from Kyndryl's earnings presentation, May 6, 2026
Slide 1: Fourth Quarter and Full-Year 2026 Earnings
Fourth Quarter and Full-Year 2026 Earnings May 6, 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: Kyndryl Consult, hyperscalers and AI-led modernization are driving revenue
Kyndryl Consult, hyperscalers and AI-led modernization are driving revenue Sources of Kyndryl Kyndryl Consult Hyperscaler-related revenue revenue revenue1 20% Pre-spin 35% +18% +59% signings 50% (lower- margin) $3.5B $3.0B $1.9B Post-spin 80% $1.2B signings 65% (higher- 50% margin) FY25 FY26 FY27E F
Slide 6: AI-led modernization with Kyndryl's differentiated and scalable solutions
AI-led modernization with Kyndryl’s differentiated and scalable solutions Customers turn to Kyndryl Our growing agentic capabilities for business outcomes Agentic Service Management Faster, scalable implementation Assess IT readiness, modernize operations, and establish governance and best practic
Slide 7: AI-led modernization customer wins
AI-led modernization customer wins Major European bank Global insurer Public sector 13-year relationship 9-year relationship 30-year relationship Approach Infrastructure-led Application-led Business workflow-led Customer Data sovereignty, vendor agnostic hybrid Critical skills shortage, modernize co
Slide 8: Fiscal 2026 financial results
Fiscal 2026 financial results ($ in millions) Year ended Year ended Year ended Mar. 31, 2026 Mar. 31, 2025 Mar. 31, 2024 Strategic Markets United Revenue $15,092 $15,057 $16,052 States $3,625 $3,784 Growth, in constant currency (3%) (4%) (6%) Fiscal year Adjusted EBITDA $2,672 $2,516 $2,367 revenue
Slide 9: Our partnership with IBM continues to evolve
Our partnership with IBM continues to evolve Year-over-year revenue trends Evolving IBM content had a greater than 3-point unfavorable impact on revenue performance* Primarily driven by our Focus Accounts (3%) initiative (4%) Reported constant currency revenue performance (6%) FY24 FY25 FY26 Our fis
Slide 10: Strong conversion of earnings to free cash flow
Strong conversion of earnings to free cash flow Free cash flow Earnings to free cash flow 2 ($ in millions, twelve months ended Mar. 31, 2026) ($ in millions, cumulative FY25 and FY26) $1,064 $299 ($543) $762 $825 ($245) ($151) $581 $406 Adjusted Cash Free cash flow 3 Adjusted Depreciation Net capit
Slide 11: Investment-grade balance sheet metrics
Investment-grade balance sheet metrics (as of March 31, 2026) Net leverage ratio2 $2.6B $4.8B 0.7x Cash Available liquidity1 0.6x 0.5x $1.5B Well laddered Net debt debt maturity March March March 2024 2025 2026 Maintain strong balance sheet and financial flexibility 1 Consists of $2.6B of cash and $
Slide 12: 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% 1.1x 9% 9% 8% 1.0x Supports our high-single-digit margin target FY24 FY25 FY26 FY24 FY25 FY26 FY24
Slide 13: Fiscal 2027 outlook
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 margin of approxi
Slide 14: Signposts to fiscal 2028
Signposts to fiscal 2028 Signpost Exiting FY26 Drivers in FY27 outlook Backlog trajectory entering year 5-point improvement Signings performance and mix Kyndryl Consult signings > revenue $4B signings, $3.5B revenue Consult capacity and productivity improvement Hyperscaler-related revenue growth +59
Slide 15: Kyndryl
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Slide 16: Positioning Kyndryl for sustainable growth through innovation
Positioning Kyndryl for sustainable growth through innovation Alliances Building solutions together to deliver customer outcomes Mission-critical Expanding scope and winning new logos through infrastructure expertise Kyndryl Consult Growth drivers Advising technology-first, industry-informed, AI-pow
Slide 17: Recent accolades and industry recognition
Recent accolades and industry recognition 2025 Google Cloud Global Partner of the Year 2025 Cloudflare Americas Systems Recognized as a Leader in the November 2025 Gartner® Award for Infrastructure Modernization Integrator Partner of the Year Magic Quadrant for Outsourced Digital Workplace Services,
Slide 18: Fiscal fourth quarter 2026 financial results
Fiscal fourth quarter 2026 financial results ($ in millions) Quarter ended Quarter ended Quarter ended Mar. 31, 2026 Dec. 31, 2025 Mar. 31, 2025 Strategic Markets United Revenue $3,769 $3,859 $3,800 States $916 $1,016 Growth, in constant currency (5%) 0% 1% Quarterly Adjusted EBITDA $688 $696 $698 r
Slide 19: Fiscal 2026 adjusted pretax income and adjusted EBITDA
Fiscal 2026 adjusted pretax income and adjusted EBITDA ($ in millions) $89 $1,239 $2,672 $762 $63 $64 $41 $581 $414 Pretax Stock-based Transaction- Intangibles Adjusted Depreciation Amortization Interest Adjusted Income compensaton related costs 1 amortization and pretax Income Expense 3 Expense 4 E
Slide 20: Fiscal 2026 adjusted EBITDA and free cash flow
Fiscal 2026 adjusted EBITDA and free cash flow ($ in millions) ($543) ($1,362) $2,672 ($115) ($151) ($95) $406 Adjusted Net capital Deferred Interest Cash taxes Working capital Free EBITDA expenditures 1 costs 2, 3 paid paid (excl. deferred cash Flow 5 3,4 costs) & other 1 Net capital expenditures c
Slide 21: Definitions and rationale for non-GAAP metrics
Definitions and rationale for non-GAAP metrics We present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe it enhances investors' visibility to management decisions and their impacts on operational
Slide 22: Reconciliation of non-GAAP metrics
Reconciliation of non-GAAP metrics ($ in millions, except per-share amounts) Three Three Three Reconciliation of adjusted pretax income months ended months ended months ended to adjusted net income and adjusted EPS Mar. 31, 2026 Dec. 31, 2025 Mar. 31, 2025 Reconciliation of net income Three Three Th
Slide 23: Reconciliation of non-GAAP metrics
Reconciliation of non-GAAP metrics ($ in millions, except per-share amounts) Reconciliation of net income Twelve Twelve Twelve to adjusted pretax income months ended months ended months ended and adjusted EBITDA Mar. 31, 2026 Mar. 31, 2025 Mar. 31, 2024 Twelve Twelve Twelve Reconciliation of adjuste