Q3 2025 Kyndryl Holdings Inc Earnings Call Transcript
Key Points
- Kyndryl Holdings Inc (KD) reported a strong quarter with signings growing year over year for the fifth consecutive quarter, up 31% to $16.3 billion over the last 12 months.
- Adjusted pretax margins increased substantially compared to last year, and the company generated more than $170 million of adjusted free cash flow in the quarter.
- Hyperscaler-related revenue surpassed $300 million in the quarter, tracking ahead of the nearly $1 billion full-year target.
- Kyndryl Consult revenues were up 18% over the last 12 months, with signings up 45%, indicating strong growth in this segment.
- The company began a share repurchase program, buying back 859,000 shares at a cost of $30 million, indicating confidence in its financial position.
- Revenue totaled $3.7 billion, reflecting a 3% decline in constant currency, indicating challenges in maintaining top-line growth.
- Currency movements created a 2-point gap between reported revenue change and constant currency revenue change, impacting financial results.
- The company faced a $50 million year-over-year increase in IBM software costs, which affected adjusted pretax income.
- Despite strong signings, the company still faces challenges in converting these into timely revenue growth.
- The macroeconomic environment, including potential tariff implications, could lead to elongated timelines and uncertainties in client budgets.
Good day, and thank you for standing by. Welcome to the Kyndryl third-quarter 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Lori Chaitman, Head of Investor Relations. Ma'am, please go ahead.
Good morning, everyone, and welcome to the Kyndryl's earnings call for the third quarter ended December 31, 2024. Before we begin, I'd like to remind you that our remarks today will include forward-looking statements. These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied. These forward-looking statements speak only to our expectations as of today. For more details on some of these risks, please see the Risk Factors section of our annual report on Form 10-K for the year ended March 31, 2024.
In today's remarks, we'll also refer to certain non-GAAP financial metrics.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
