By Rob Curran
Kyndryl Holdings' fiscal fourth-quarter net income fell as revenue slipped and the computer-services firm warned that revenue would be flat-to-lower in the coming fiscal year despite growth in demand from artificial-intelligence giants.
The New York-based information-technology firm, which was spun off by IBM in 2021, posted earnings of $17 million, or 8 cents a share, for the quarter ended in March, down from $68 million, or 28 cents a share, a year earlier.
Revenue ticked down 0.8% to $3.77 billion, exceeding the mean analyst estimate of $3.75 billion, as per FactSet.
For the fiscal year ending March 2027, Kyndryl targeted adjusted pretax earnings in a range between $600 million and $700 million. The IT company anticipates revenue flat to down 2% from $15.09 billion in fiscal 2026.
For the fiscal year ended in March, Kyndryl said it generated $1.9 billion in revenue from "hyperscalers" in the cloud-computing business such as Microsoft, Google Cloud and Amazon Web Services, a 59% increase over the prior fiscal year.
In February, shares of Kyndryl Holdings lost more than half their value in one session after the company's financial chief left amid a review of accounting practices following an inquiry from the Securities and Exchange Commission. Chief Financial Officer David Wyshner and general counsel, Edward Sebold, left the company abruptly.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
May 06, 2026 07:41 ET (11:41 GMT)
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