Kyndryl (KD) stock surged 5.25% in pre-market trading on Thursday, following the release of its quarterly earnings report for the period ended March 31. The IT services company's financial results surpassed analysts' expectations, despite a slight decline in revenue.

According to the report, Kyndryl posted adjusted earnings of 28 cents per share, marking a significant improvement from the loss of 20 cents per share in the same quarter last year. While this figure fell short of the mean analyst expectation of 36 cents per share, it still represented a substantial turnaround for the company. Revenue for the quarter came in at $3.80 billion, slightly above the analysts' forecast of $3.77 billion, despite a 1.3% year-over-year decline. Notably, Kyndryl reported a quarterly net income of $68 million, further highlighting its improved financial performance.

Wall Street maintains a positive outlook on Kyndryl, with the current average analyst rating on the shares being "buy." The consensus includes 6 "strong buy" or "buy" recommendations, with no "hold," "sell," or "strong sell" ratings. The median 12-month price target for Kyndryl stands at $43.00, suggesting potential upside for investors. As the company continues to demonstrate financial improvement, market participants will be closely watching its performance in the coming quarters to assess its long-term growth prospects in the competitive IT services and consulting sector.