Q2 2025 Kyndryl Holdings Inc Earnings Call Transcript
Key Points
- Kyndryl Holdings Inc (KD) reported the strongest quarter of signings in its history as an independent company, with total signings growing 132% year over year.
- The company is on track to deliver a billion dollars of hyperscaler-related revenue this fiscal year, doubling its fiscal 2024 total.
- Kyndryl Holdings Inc (KD) is experiencing strong growth in its advisory services, with Kindred Consult revenues growing 23% year over year.
- The company has successfully increased its adjusted pre-tax income by 80% to $45 million, reflecting strong execution on its strategy.
- Kyndryl Holdings Inc (KD) has a solid financial position with $1.3 billion in cash and $4.5 billion of liquidity at the end of the quarter.
- Revenue for the second quarter totaled $3.8 billion, representing a 7% decline in constant currency.
- The company is still in the early stages of modernization, with more than 70% of participants indicating they are not fully modernized.
- Two-thirds of CEOs are concerned about outdated IT systems, carrying vulnerabilities and skills gaps.
- 40% of mission-critical components such as servers, storage networks, and operating systems are approaching or at their end of life.
- Kyndryl Holdings Inc (KD) faces headwinds from workforce rebalancing charges, increased IBM software costs, and currency movements.
(Technical difficulty)
From services we provide that are related to the hyperscalers and we expect to reach a billion dollar in hyper scalar related revenue this fiscal year with our mainframe modernization skills and hypers scalar alliances. We're migrating, managing optimizing and securing our customers it environments across multiple cloud platforms and helping them ensure that the right workload is on the right platform.
Our growth is fueled by providing customers with higher value solutions that leverage both our extensive know how and our alliance partners partners capabilities together, we're focused on joint enablement activities, co marketing and incremental training, all of which bring solutions to the market that address our customers' most pressing needs because of our alliances, the skills we can bring to bear and the freedom of action we have as an independent company. We're frequently expanding the scope of services we provide to existing customers to now include mainframe
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