Kyndryl Holdings (KD) FY2026 results: revenue $15.1 billion, up 0.2% on the year
Kyndryl Holdings, Inc. (KD) reported revenue of $15.1 billion for fiscal 2026, the year ended 31 March 2026, up 0.2% on the year before. Net income was $198 million, down 21.4%, and diluted earnings per share $0.85. The figures are the company's own, from the 10-K it filed with the SEC on 29 May 2026.
this yearthe year beforeHover a bar for its figure.
The year in brief
What management said about the year
- Quarter revenue down 5% constant currency: Fourth-quarter revenue was $3.8 billion, down 1% as reported and down 5% in constant currency from the prior-year quarter.
- Full-year adjusted pretax income up 21%: Fiscal 2026 adjusted pretax income was $581 million against $482 million, and adjusted net income was $341 million, or $1.46 per diluted share.
- Quarter net income cut by tax accrual: Fourth-quarter net income was $17 million, or $0.08 per diluted share, against $68 million and $0.28. Tax expense included a non-recurring, non-cash accrual.
- Signings fell to $13.5 billion: Fiscal 2026 signings were $13.5 billion against $18.2 billion. Fourth-quarter signings were $3.6 billion against $5.5 billion.
- Full-year free cash flow $406 million: Free cash flow was $406 million in fiscal 2026 against $419 million, while operating cash flow was $948 million against $942 million.
From this 10-K
Kyndryl designs, builds, manages and modernizes information technology systems for its customers, offering advisory, implementation and managed services to thousands of customers in more than 60 countries. It was formed in November 2021 when IBM spun off the infrastructure services unit of its Global Technology Services segment. Its fiscal year ends March 31, and it reports four segments by geography: United States, Japan, Principal Markets and Strategic Markets.
The four quarters: Q1 FY2026 · Q2 FY2026 · Q3 FY2026 · Q4 FY2026
Income statement (profit and loss)
| $ million | FY2026 | FY2025 | FY2024 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Revenue | 15,092 | 15,057 | 16,052 | +0.2% | |
| Cost of revenue | 11,803 | 11,914 | 13,189 | -0.9% | |
| Gross profit | 3,289 | 3,143 | 2,863 | +4.6% | |
| Gross margin | 21.8% | 20.9% | 17.8% | ||
| Research and development | 57.0 | 49.0 | 58.0 | +16.3% | |
| Selling, general and administrative | 2,654 | 2,591 | 2,773 | +2.4% | |
| Interest expense | 89.0 | 100 | 122 | -11.0% | |
| Pre-tax income | 414 | 435 | -168 | -4.8% | |
| Income tax | 215 | 184 | 172 | +16.8% | |
| Effective tax rate | 51.9% | 42.3% | n/a | ||
| Net income | 198 | 252 | -340 | -21.4% | |
| Net margin | 1.3% | 1.7% | -2.1% | ||
| Diluted EPS | $0.85 | $1.05 | -$1.48 | -19.0% |
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Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.Cash flow
| $ million | FY2026 | FY2025 | FY2024 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Operating cash flow | 948 | 942 | 454 | +0.6% | |
| Capital expenditure | 608 | 605 | 651 | +0.5% | |
| Free cash flow | 340 | 337 | -197 | +0.9% | |
| Free cash flow margin | 2.3% | 2.2% | -1.2% | ||
| Cash from investing | -561 | -404 | -553 | ||
| Cash from financing | 457 | -286 | -170 | ||
| Depreciation and amortisation | 789 | 690 | 864 | +14.3% | |
| Share-based compensation | 64.0 | 100 | 95.0 | -36.0% | |
| Buybacks | 304 | 93.0 | n/a | +226.9% | |
| Dividend per share | $0.00 | $0.00 | $0.00 | ||
| Diluted shares, weighted | 234m | 239m | 229m | -2.2% |
Balance sheet
| $ million | FY2026 | FY2025 | FY2024 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Shareholders' equity | 1,175 | 1,219 | 1,015 | -3.6% | |
| Non-controlling interest | 117 | 113 | 107 | +3.5% | |
| Debt | 4,089 | 3,171 | 3,238 | +28.9% | |
| Operating lease liabilities | 602 | 511 | 622 | +17.8% | |
| Finance lease liabilities | 108 | 150 | 193 | -28.0% | |
| Other liabilities | 6,460 | 5,288 | 5,415 | +22.2% | |
| Total liabilities and equity | 12,551 | 10,452 | 10,590 | +20.1% | |
| Fixed assets | 2,517 | 2,570 | 2,674 | -2.1% | |
| Goodwill | 786 | 790 | 805 | -0.5% | |
| Intangible assets | 165 | 218 | 188 | -24.3% | |
| Cash and equivalents | 2,623 | 1,786 | 1,553 | +46.9% | |
| Receivables | 1,300 | 1,345 | 1,599 | -3.3% | |
| Other assets | 5,160 | 3,743 | 3,771 | +37.9% | |
| Total assets | 12,551 | 10,452 | 10,590 | +20.1% |
10-K for the year ended 31 March 2026, filed 29 May 2026: the filing.