Kyndryl Reports Q2 2027 Results with Revenue Decline Amid Strong Signings and Margin Expansion
Kyndryl (KD) reported second-quarter fiscal 2027 revenue of $3.65 billion, a year-over-year decline of 1.9%. Despite the top-line contraction, the company demonstrated improved profitability with adjusted EBITDA of $699 million and an expanded margin of 19.1%, up 190 basis points from the previous year. The company's growth is being driven by strong momentum in its consulting arm and hyperscaler-related services, which grew 27.2% year-over-year. Total signings reached $4.1 billion for the quarter, contributing to a 34% increase in signings during the first half of the fiscal year. Kyndryl also highlighted significant large deal momentum, securing 11 contracts exceeding $50 million. Management is currently undergoing workforce rebalancing, incurring $190 million in charges during the first half of the year but expecting $200 million in savings in the second half. The company reaffirmed its full-year free cash flow outlook of $400 million to $500 million and maintains a strong liquidity position with $4.8 billion available.
Tickers: $KD
Topics: Cloud Computing EBITDA Financial Performance Revenue Signings
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Part of the story Kyndryl Reaffirms Full-Year Outlook Amid Shift Toward High-Margin Advisory Services (2 articles)