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Kyndryl guides FY2027 adjusted pretax income within a $600 million to $700 million range
The company also reported Q1 workforce rebalancing charges of $152 million and said annualized savings from the plan are expected to start in fiscal 2028.
Kyndryl Holdings reaffirmed its fiscal 2027 guidance for adjusted pretax income of $600 million to $700 million, assuming revenue stays flat to down 2% in constant currency, according to a Yahoo Finance earnings call summary.
The company pointed to momentum from higher-margin post-spin signings, with 12-month signings totaling $14.2 billion and total signings exceeding revenue for the last six months. It also said its Kyndryl Consult segment grew 14% over the last 12 months, supported by enterprise demand for designing and scaling agentic AI and modernizing complex hybrid IT environments.
Kyndryl reported hyperscaler-related revenue streams grew 48% year over year, while headwinds from legacy focus accounts and changes in how customers procure IBM hardware and software partially offset that growth.
Management said it is embedding AI-powered automation through Kyndryl Bridge, which has generated about $1 billion in cumulative savings since the spin-off. The company also disclosed that it incurred $152 million in workforce rebalancing charges during Q1, with annualized savings projected at $400 million to $500 million starting in fiscal 2028.