Kyndryl swings to $55 million Q1 net loss on 3% revenue decline; outlook reaffirmed
Kyndryl reported first-quarter fiscal 2027 revenue of $3.6 billion, down 3% year-over-year, and a net loss of $55 million, compared with net income of $56 million a year earlier. The results include $152 million of workforce rebalancing charges, and the company reaffirmed its fiscal 2027 outlook for revenue, earnings and free cash flow.
Key points
- Revenue was $3.6 billion, down 3% year-over-year; pretax loss was $69 million versus pretax income of $92 million in the prior-year quarter.
- Diluted loss per share was $0.25, compared with diluted earnings of $0.23 per share a year earlier; adjusted loss per share was $0.12, versus adjusted earnings of $0.37.
- Free cash flow was a use of $401 million, compared with a use of $222 million a year earlier; adjusted EBITDA was $512 million, down from $647 million.
- Fiscal 2027 outlook reaffirmed: adjusted pretax income of $600 to $700 million and free cash flow of $400 to $500 million.
The filing
Written by AI on Nov 8, 2026, 1:38 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on August 05, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.