Kyndryl Holdings, Inc. released financial results for the first quarter ended June 30, 2025, reporting revenues of $3.74 billion. This figure was up slightly year-over-year on a reported basis but down 2.6% in constant currency, missing Wall Street's revenue expectations.
Despite the revenue miss, the company reported strong profit growth, with pretax income increasing 44% year-over-year to $92 million, and net income reaching $56 million, or $0.23 per diluted share. Adjusted pretax income rose 39% to $128 million, and Adjusted EBITDA increased 16% to $647 million.
Chairman and CEO Martin Schroeter noted steady progress across key growth areas, including Kyndryl Consult and hyperscaler-related activity. The company reaffirmed its outlook for fiscal year 2026, which projects positive constant currency revenue growth of approximately 1% and adjusted pretax income of at least $725 million.
Signings for the trailing twelve months were $18.3 billion, representing a 43% year-over-year increase. However, the market reacted negatively to the revenue shortfall, with Kyndryl shares falling significantly following the announcement.
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