Kyndryl Holdings, Inc. · NYSE:KD
Kyndryl — Q3 2026 Earnings Presentation
20 slides from Kyndryl's earnings presentation, Feb 9, 2026
Slide 1: Third Quarter 2026 Earnings
Third Quarter 2026 Earnings February 9, 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: Our partnership with IBM continues to evolve
Our partnership with IBM continues to evolve Year-over-year revenue growth Evolving IBM content had a ~3.5 point adverse impact on revenue growth* Primarily driven by our (1%) (2%) Focus Accounts Total revenue in constant currency (3%) initiative (4%) (6%) LTM LTM LTM LTM LTM Mar. 2024 Mar. 2025 Jun
Slide 6: Driving growth through our mission-critical capabilities
Driving growth through our mission-critical capabilities Targeted growth areas Actions underway to win in the current environment Hyperscaler-related Kyndryl Consult revenue revenue • Invest in Kyndryl Consult and drive incremental momentum through our alliances +73% +29% • Drive innovation, includi
Slide 7: Progressing on our multi-year objectives
Progressing on our multi-year objectives Progress on profit continues Converting earnings Return to revenue growth Adjusted pretax income to free cash flow1 $1.2B+ ~$1.1B ~$300M $575M ~$800M to $600M $482M • Kyndryl Consult • Hyperscalers • Agentic AI • Private cloud FY25 FY26E FY28E FY25, FY26E Cas
Slide 8: Fiscal third quarter 2026 financial results
Fiscal third quarter 2026 financial results ($ in millions) Quarter ended Quarter ended Quarter ended Dec. 31, 2025 Sept. 30, 2025 Dec. 31, 2024 Strategic Markets United Revenue $3,859 $3,721 $3,744 States $905 $958 Growth, in constant currency 0% (4%) (3%) Quarterly Adjusted EBITDA $696 $641 $704 r
Slide 9: Investment-grade balance sheet metrics and positive cash flow
Investment-grade balance sheet metrics and positive cash flow Free cash flow 1 Balance sheet and cash flow metrics ($ in millions, three months ended Dec. 31) $1.3B $3.1B Cash Debt $193 ($210) $1.8B $4.5B $102 Net debt Available liquidity2 ($36) $217 $168 $427M $100M Cash flow from operations Shares
Slide 10: 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 11: Fiscal 2026 outlook
Fiscal 2026 outlook Fiscal 2026 outlook Adjusted pretax income $575 to $600 million Adjusted EBITDA margin Approximately 17.5% Free cash flow1 $325 to $375 million Revenue Constant-currency decline of 2% to 3% Focused on delivering innovation, expanding margins and growing revenue Based on recent ex
Slide 12: kyndryl.
kyndrvl.
Slide 13: Positioning Kyndryl for sustainable growth through innovation
Positioning Kyndryl for sustainable growth through innovation Alliances Building solutions together to deliver customer outcomes Mission-critical Expanding scope and winning new logos through infrastructure expertise Kyndryl Consult Growth drivers Advising technology-first, industry-informed, AI-pow
Slide 14: Our services
Our services Diversified sources Practice Overview Revenue of revenue Delivering seamless, integrated, multicloud management in a 33% Cloud hybrid model Technology, media Financial and telecom services Delivering full line of cybersecurity, business continuity and disaster 11% Security & 14% recover
Slide 15: Recent accolades and industry recognition
Recent accolades and industry recognition 2025 Google Cloud Global Partner of the Year 2025 Cloudflare Americas Systems Recognized as a Leader in the November 2025 Gartner® Award for Infrastructure Modernization Integrator Partner of the Year Magic Quadrant for Outsourced Digital Workplace Services,
Slide 16: Fiscal third quarter 2026 adjusted pretax income and adjusted EBITDA
Fiscal third quarter 2026 adjusted pretax income and adjusted EBITDA ($ in millions) $21 $314 $696 $193 $16 $23 $38 $168 $91 Pretax Stock-based Transaction- Intangibles Other Adjusted Depreciation Amortization Interest Adjusted Pretax income compensation related costs 1 amortization adjustments 1 an
Slide 17: Fiscal third quarter 2026 adjusted EBITDA and free cash flow
Fiscal third quarter 2026 adjusted EBITDA and free cash flow ($ in millions) ($210) $696 ($262) ($38) $68 ($36) $217 Adjusted Net capital Deferred Interest Cash taxes Working capital Free Free Adjusted EBITDA expenditures 1 costs 2, 3 paid paid (excl. deferred cash cash free flow cashflow 3 flow cos
Slide 18: Definitions and rationale for non-GAAP metrics
Definitions and rationale for non-GAAP metrics We present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe it enhances investors' visibility to management decisions and their impacts on operational
Slide 19: Reconciliation of non-GAAP metrics
Reconciliation of non-GAAP metrics ($ in millions, except per-share amounts) Three Three Three Reconciliation of adjusted pretax income months ended months ended months ended to adjusted net income and adjusted EPS Dec. 31, 2025 Sept. 30, 2025 Dec. 31, 2024 Adjusted pretax income (non-GAAP) $168 $12
Slide 20: Reconciliation of non-GAAP metrics
Reconciliation of non-GAAP metrics ($ in millions, except per-share amounts) Reconciliation of net income Nine Nine Twelve Nine Nine 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