KD Earnings Prediction
The chart below shows how KD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KD sees a -1.48% change in stock price 10 days leading up to the earnings, and a +9.79% change 10 days following the report. On the earnings day itself, the stock moves by -0.26%. This data can give you a slight idea of what to expect for the next quarter's release.
KD Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.77B
-7.34%
0.94%
Gross Margin
19.87%
24.34%
-7.71%
Operating Margin
0.79%
206.76%
-75.62%
Net Margin
-1.14%
-67.34%
-493.10%
EPS
-0.19
-69.35%
-480.00%
No Data Available
KD Earnings Analysis
Kyndryl Holdings, Inc. Corporation (KD.N) Earnings Conference Call
Positive
Record Signings Surge: 1. Record Signings Growth: Kyndryl achieved a record post-spin quarter for signings, growing 33% year-over-year to $16 billion, with total signings increasing 132% year-over-year in Q2 2025.
Kyndryl Consult Revenue Surge: 2. Strong Kyndryl Consult Performance: Kyndryl Consult revenues grew 23% year-over-year, with signings up 81%, highlighting the increasing demand for advisory services.
Hyperscaler Revenue Surge: 3. Significant Hyperscaler Revenue Growth: The company doubled its revenue from hyperscaler-related services over the past year, projecting to reach $1 billion in hyperscaler-related revenue for fiscal 2025.
Adjusted Pretax Income Surge: 4. Improved Adjusted Pretax Income: Adjusted pretax income grew 80% year-over-year to $45 million, reflecting strong execution and strategic initiatives despite headwinds.
Strong Cash Reserves: 5. Robust Cash Position: Kyndryl ended the quarter with a cash balance of $1.3 billion, contributing to a total liquidity of $4.5 billion, well-positioned for future investments.
Negative
Revenue Decline Analysis: 1. Revenue Decline: Kyndryl reported a revenue total of $3.8 billion for Q2 2025, reflecting a 7% decline in constant currency year-over-year, primarily due to the intentional exit from low-margin revenue streams.
Operational Headwinds Analysis: 2. Adjusted Pretax Income Impact: The adjusted pretax income of $45 million included $39 million in workforce rebalancing charges and a $50 million increase in IBM software costs, indicating significant operational headwinds.
Low Cash Flow Projection: 3. Negative Cash Flow Projection: The company projected adjusted free cash flow of only $300 million for fiscal 2025, which is relatively low compared to its operational scale and growth ambitions.
Revenue Decline Forecast: 4. Ongoing Revenue Decline Outlook: Kyndryl's outlook for fiscal 2025 anticipates a revenue decline of 2% to 4% in constant currency, suggesting continued challenges in revenue generation despite recent signings growth.
Cost Management Vulnerability: 5. High Dependency on Cost Management: The company reported a $40 million impact from currency movements and highlighted the need for ongoing cost management to mitigate these financial pressures, indicating vulnerability in its financial stability.
KD FAQs
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KD Earning Call Sentiment
Kyndryl Holdings Inc (KD) Q2 2025 Earnings Call Transcript
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00:00
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KD.N
1.25%Positive
The earnings call summary shows mixed signals. While there are positive developments such as strong consulting revenue growth, increased signings, and a new partnership with NVIDIA, there are also negative factors like a revenue decline and workforce rebalancing charges. The Q&A section reveals uncertainty about the outlook, which management didn't clarify, creating doubt. The economic factors and modernization challenges add to the neutral sentiment. The lack of clear guidance and the economic headwinds balance out the positives, suggesting a neutral impact on the stock price.
