Kyndryl announced on November 5, 2025 that it will acquire Solvinity Group B.V., a privately held Dutch company that delivers secure managed cloud platforms and services. The terms of the transaction have not been disclosed.
The acquisition follows Kyndryl’s Q3 2025 earnings release on November 4, 2025. The company reported a non‑GAAP earnings per share of $0.38, beating consensus estimates of $0.35–$0.36 by $0.02–$0.03, or roughly 6 % of the expected figure. Revenue for the quarter was $3.72 billion, $0.10 billion (2.9 %) below the $3.82 billion consensus estimate. Compared with the same period a year earlier, EPS rose from $0.01 to $0.38, while revenue fell 1.4 % year‑over‑year.
The earnings beat was driven by disciplined cost management and a shift toward higher‑margin services. Kyndryl’s consulting and hyperscaler segments grew strongly, with consulting revenue expanding double‑digit and hyperscaler revenue up 65 % to $440 million. These gains offset a decline in core services revenue, which fell as the company reduced low‑margin third‑party content and faced longer sales cycles. The revenue miss reflects the company’s strategic focus on higher‑margin contracts and the impact of those longer sales cycles.
Kyndryl reaffirmed its fiscal 2026 outlook, projecting adjusted pretax income of at least $725 million and an adjusted EBITDA margin of about 18 %. Revenue guidance for the year is a 1 % constant‑currency growth, indicating confidence in maintaining profitability while pursuing moderate top‑line expansion.
The Solvinity acquisition is intended to broaden Kyndryl’s portfolio of secure managed cloud services and strengthen its security and compliance capabilities. Solvinity’s private and hybrid sovereign cloud offerings will be integrated with Kyndryl’s existing cloud‑managed services, positioning the company to serve customers that demand stringent security and regulatory compliance. This move aligns with Kyndryl’s strategy to expand its service offerings in the high‑growth managed‑cloud market.
Investors reacted positively to the earnings beat and the acquisition announcement, underscoring confidence in Kyndryl’s profitability and its strategic expansion into secure managed cloud services.
"Kyndryl’s acquisition of Solvinity will enable us to offer customers expanded services in modernizing, innovating and securing sensitive and complex workloads," said Petra Goude, President of Kyndryl Strategic Markets.
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