Kyndryl Reaffirms Full-Year Outlook Amid Shift Toward High-Margin Advisory Services
Kyndryl reported its fiscal second quarter 2027 results, highlighting a strategic pivot toward higher-margin advisory work and large-scale enterprise agreements. The company secured 43 deals valued at over $50 million each in the past year, with 11 of those occurring in the most recent quarter. This growth is driven by clients seeking modernization through artificial intelligence (AI), cybersecurity upgrades, and cloud infrastructure. Financially, Kyndryl reported gross margins of 22.5% for the first half of the fiscal year and reaffirmed its full-year free cash flow guidance of $400 million to $500 million. Management expects continued margin expansion through automation and cost reductions in service delivery. The company's consulting unit, Kyndryl Consult, is seeing strong momentum as new contract signings outpace realized revenue, signaling robust future demand.