Kyndryl recently released its latest 10-K report. Kyndryl Holdings, Inc. is a technology services company and IT infrastructure services provider operating in the United States, Japan and other international markets. It sells cloud, core enterprise and zCloud, application, data and AI, digital workplace, security and resiliency, and network and edge services to customers in financial services, healthcare, public sector, technology, media and telecom, retail, travel and automotive. The company was incorporated in 2020 and is based in New York.
In Item 7, Kyndryl said it serves thousands of customers in more than 60 countries and is organized into four geographic segments: United States, Japan, Principal Markets and Strategic Markets. For fiscal 2026, revenue was $15.092 billion, essentially flat from $15.057 billion in fiscal 2025, after a 6% decline in fiscal 2025 from $16.052 billion in fiscal 2024. On a constant-currency basis, revenue fell 3% in fiscal 2026, compared with a 4% decline in fiscal 2025 and a 6% decline in fiscal 2024.
Net income was $198 million in fiscal 2026, down from $252 million in fiscal 2025, while adjusted EBITDA rose to $2.672 billion from $2.516 billion. In fiscal 2024, Kyndryl reported a net loss of $340 million and adjusted EBITDA of $2.367 billion. Total assets increased to $12.551 billion at March 31, 2026 from $10.452 billion a year earlier, while liabilities rose to $11.259 billion from $9.121 billion and equity slipped to $1.293 billion from $1.331 billion.
By segment, U.S. revenue fell 2% to $3.784 billion in fiscal 2026, Japan revenue fell 3% to $2.284 billion, Principal Markets revenue rose 4% to $5.399 billion, and Strategic Markets revenue was unchanged at $3.625 billion. Adjusted EBITDA increased 15% in the U.S. to $835 million and 25% in Japan to $486 million, while Principal Markets fell 6% to $834 million and Strategic Markets rose 3% to $622 million.
Kyndryl said fiscal 2026 revenue benefited from growth in Kyndryl Consult and hyperscaler-related revenue, but was pressured by lengthening sales cycles and changes in content from its former parent in customer engagements. It also said margins were adversely affected by longer sales cycles. The company noted that fiscal 2025 revenue decline reflected efforts to reduce low-margin components of customer relationships, along with currency effects.
The filing also said Kyndryl continues to cooperate with the SEC Division of Enforcement’s investigation into cash management practices, related disclosures, internal control over financial reporting and other matters. It said the matter is ongoing and that it cannot predict the final outcome. Kyndryl also said it has identified material weaknesses in internal control over financial reporting. Today the company's shares have moved 1.82% to a price of $11.995. For the full picture, make sure to review Kyndryl's 10-K report.
