Kyndryl Holdings, Inc. · NYSE:KD
Kyndryl — Q1 2026 Earnings Presentation
24 slides from Kyndryl's earnings presentation, Aug 5, 2025
Slide 1: First Quarter 2026 Earnings
First Quarter 2026 Earnings August 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 Returning capital to shareholders Targeting full-year Capitalizing on our alliances, Growing Kyndryl Consult, Funding share repurchases revenue growth and innovation and
Slide 5: Driving growth through our mission-critical capabilities
Driving growth through our mission-critical capabilities Kyndryl Consult Hyperscaler-related Signings revenue revenue +44% +32% +119% $18.3B $1.4B $3.2B $12.8B $2.4B $0.6B LTM LTM LTM LTM LTM LTM June 2024 June 2025 June 2024 June 2025 June 2024 June 2025 Delivering value and driving incremental opp
Slide 6: 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 7: Kyndryl Consult is capturing increased customer demand for modernization
Kyndryl Consult is capturing increased customer demand for modernization Infrastructure-first Moving up the value chain Enterprise-grade agentic AI Kyndryl Bridge insights as a foundation Design, build and manage infrastructure, Integrating agents in our solutions to to Kyndryl Consult engagements d
Slide 8: Example: Expanding services with customer in travel sector
Example: Expanding services with customer in travel sector New scope Migrating applications to cloud and optimizing network resiliency with enhanced automation Kyndryl Consult Modernizing IT estate with state-of-the-art Renewed technologies to drive efficiencies existing relationship Building on tru
Slide 9: Example: Won a new industrial customer and now expanding our relationship
Example: Won a new industrial customer and now expanding our relationship Scope expansion Now providing mission-critical infrastructure, application and workplace services Innovative IT partner Providing automation and efficiencies with modern technologies, leveraging 3x Initial scope Kyndryl Consul
Slide 10: 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 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 33% (lower-margin) $725M+ 50% ~$550M High- single- $446M $482M digit >90% margin 67% 50% Post-spin 3.2% signings margin (hig
Slide 12: Financial highlights
Financial highlights Results reflect continued progress and consistent execution Growth strategy driving significant margin expansion Capital returns to shareholders powered by free cash flow Projecting substantial earnings growth again We design, build, manage and modernize the mission-critical sys
Slide 13: Fiscal first quarter 2026 financial results
Fiscal first quarter 2026 financial results ($ in millions) Quarter ended Quarter ended June 30, 2025 June 30, 2024 Strategic Markets United States Revenue $3,743 $3,739 $898 $911 Growth, in constant currency (2.6%) (8.5%) Up 5.9 pts Quarterly Adjusted EBITDA $647 $556 revenue by segment $578 Adjust
Slide 14: Investment-grade balance sheet metrics and cash flow seasonality
Investment-grade balance sheet metrics and cash flow seasonality Free cash flow Balance sheet and cash flow metrics ($ in millions, three months ended June 30) $1.5B $3.1B ($97) Cash Debt $191 ($67) $1.7B $4.6B $128 Net debt Available liquidity2 ($377) ($222) ($124M) $65M Cash flow from operations S
Slide 15: 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 1.5x 26% 26% 26% 1.1x 9% 9% 9% Supports our high-single-digit margin target Fiscal Fiscal LTM Fiscal Fiscal LTM
Slide 16: 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 $243 million Adjusted EBITDA margin Approximately 18%, a year-over-year increase of approximately 130 basis points Free cash flow Approximately $550 million, re
Slide 17: Investment highlights
Investment highlights Leader in mission-critical enterprise technology services Innovative and differentiated approach to delivery with AI-powered Kyndryl Bridge Competitive advantage stemming from our people, data, expertise, scale and intellectual property Kyndryl Consult leverages our cus
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Slide 19: Our services
Our services Diversified sources Practice Overview Revenue of revenue Delivering seamless, integrated, multicloud management in a 34% Cloud hybrid model Technology, media Financial and telecom services Delivering full line of cybersecurity, business continuity and disaster 12% Security & 14% recover
Slide 20: Recent accolades and industry recognition
Recent accolades and industry recognition 2025 Google Cloud Global Partner of the Year 2025 Dell Global Alliances Partner of the Year Recognized as a Leader in the March 2025 Gartner® Award for Infrastructure Modernization for Marketing, Americas Innovation, and Asia Magic Quadrant for Outsourced Di
Slide 21: Fiscal first quarter 2026 adjusted pretax income and adjusted EBITDA
Fiscal first quarter 2026 adjusted pretax income and adjusted EBITDA ($ in millions) $19 $308 $647 $191 $24 $12 $128 $92 Pretax Stock-based Intangibles Other Adjusted Depreciation Amortization Interest Adjusted Pretax income compensation amortization adjustments 1 and pretax expense 2 expense 3 expe
Slide 22: Fiscal first quarter 2026 adjusted EBITDA and free cash flow
Fiscal first quarter 2026 adjusted EBITDA and free cash flow ($ in millions) ($97) ($333) $647 ($39) ($67) ($332) ($222) Adjusted Net capital Deferred Interest Cash taxes Working capital Free Adjusted EBITDA expenditures 1 costs 2, 3 paid paid (excl. deferred cash free flow cash flow costs) & other
Slide 23: Definitions and rationale for non-GAAP metrics
Definitions and rationale for non-GAAP metrics We present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe it enhances investors' visibility to management decisions and their impacts on operational
Slide 24: Reconciliation of non-GAAP metrics
Reconciliation of non-GAAP metrics ($ in millions, except per-share amounts) Three Three Twelve Reconciliation of adjusted pretax income months ended months ended months ended to adjusted net income and adjusted EPS June 30, 2025 June 30, 2024 March 31, 2025 Adjusted pretax income (non-GAAP) $128 $9