Kyndryl, a leading provider of enterprise technology services, has released its financial results for the third quarter of fiscal year 2026.
In the quarter ended December 31, 2025, Kyndryl reported revenues of $3.9 billion, representing a 3% year-over-year increase. However, on a constant currency basis, revenues remained unchanged. The company reported a pretax income of $91 million, a significant decrease from the prior-year period's $258 million. Net income for the quarter was $57 million, down from $215 million in the same period the previous year.
Adjusted figures show that Kyndryl's adjusted EBITDA was $696 million, its adjusted pretax income was $168 million (an $8 million increase from the prior-year period), and its adjusted net income was $122 million. The company's free cash flow for the quarter was $217 million.
Kyndryl's signings for the trailing twelve months ended December 31, 2025, amounted to $15.4 billion, with eleven customer contracts exceeding $50 million each signed in the third quarter.
Notable developments in the quarter include double-digit revenue growth in Kyndryl Consult, with revenues growing 24% year-over-year and reaching $3.6 billion over the last twelve months. Additionally, as part of its alliances initiative, Kyndryl generated $500 million in revenue tied to cloud hyperscaler alliances, marking a 58% year-over-year increase.
Looking ahead to fiscal year 2026, Kyndryl provided an outlook, including adjusted pretax income of $575 to $600 million, an adjusted EBITDA margin of approximately 17.5%, and a projected constant-currency revenue decline of 2% to 3%.
The company also announced several leadership changes and a strategic acquisition, as well as its designation as one of 19 "critical third-party providers" under the European Union's Digital Operational Resilience Act.
Kyndryl's earnings call for the third fiscal quarter is scheduled to begin at 8:30 a.m. ET on February 9, 2026. The company has also disclosed that the filing of its quarterly report on Form 10-Q will be delayed pending a review, with no expected restatement or impact to its financial statements.
In the third quarter, Kyndryl repurchased 3.7 million shares of its common stock at a cost of $100 million, bringing the total shares repurchased since November 2024 to 11 million shares for $349 million, or 5% of its shares outstanding. The market has reacted to these announcements by moving the company's shares -6.8% to a price of $25.21. Check out the company's full 8-K submission here.
