KYNDRYL REPORTS SECOND QUARTER FISCAL 2027 RESULTS
Q2 FY27 revenue $3.7B (-1.9% y/y), adj EPS $0.42 vs $0.38, adj EBITDA $699M; fiscal 2027 outlook reaffirmed.
What this release says
Kyndryl reported second-quarter fiscal 2027 revenue of $3.7 billion, down 1.9% year-over-year, while adjusted net income rose to $92 million from $89 million. The company reaffirmed its fiscal 2027 outlook and pointed to signings, Kyndryl Consult growth and hyperscaler-related revenue. For shareholders, the release shows solid signings and profit gains, though reported revenue declined and free cash flow was negative in the quarter.
Key figures
- Quarterly revenue
- $3.7 billion
- Net income
- $59 million
- Adjusted net income
- $92 million
- Adjusted EBITDA
- $699 million
- Trailing twelve-month signings
- $15.5 billion
- Free cash flow in quarter
- use of $34 million
Positive for shareholders
- Adjusted net income rose to $92 million from $89 million a year earlier.
- Hyperscaler-related revenue of more than $550 million grew 27.2% year-over-year in the quarter.
- Trailing twelve-month signings reached $15.5 billion, and the company reaffirmed its fiscal 2027 outlook.
Negative for shareholders
- Reported revenue fell 1.9% year-over-year, and constant-currency revenue fell 0.8%.
- Free cash flow was a use of $34 million, compared with a source of $22 million a year earlier.
- Workforce rebalancing charges rose to $38 million from $19 million.
Written by Quantisnow AI from this release. Not financial advice.
Key terms
- Adjusted EBITDA:
- A profit measure that adds back interest, taxes, depreciation and certain one-time or non-cash costs to net income.
- Constant currency:
- A way of comparing results as if exchange rates had stayed the same as in the prior period.
- Signings:
- The total value of new customer contracts the company has agreed to in a period, not yet recognized as revenue.
FAQ
How did Kyndryl perform in its second quarter of fiscal 2027?
Kyndryl reported revenue of $3.7 billion, down 1.9% year-over-year, with GAAP net income of $59 million and adjusted net income of $92 million.
Did Kyndryl change its fiscal 2027 outlook?
No, the release says Kyndryl reaffirmed its fiscal 2027 outlook.
What debt actions did Kyndryl take this quarter?
Kyndryl issued $600 million of 7.80% notes due 2029 and $400 million of 7.875% notes due 2032, then used the proceeds to repay $700 million of 2.05% notes due October 2026 and the $1 billion revolving credit balance.
Historical context for KD
Across the 27 sessions after earlier KD headlines, the stock closed higher 11 times and lower 16 times, with a median move of 3.2% in either direction. This shows timing only: many things move a stock in a session, and these figures do not show that any headline caused a move.
| Session | Earlier headline | KD | SPY |
|---|---|---|---|
| Oct 27, 2026 | Kyndryl Opens New Cyber Defense Operations Center in Paris | -3.5% | +0.6% |
| Oct 20, 2026 | Kyndryl Named a Leader in the IDC MarketScape for Worldwide Digital Workplace Services 2026 | +4.6% | +0.3% |
| Oct 14, 2026 | Kyndryl, Toyota Systems and Toyota Finance Modernize IT Operations with Agentic AI | -3.7% | -1.1% |
| Oct 13, 2026 | Kyndryl earns 21 Brandon Hall Group HCM Excellence Awards® focused on integrity training and skill building | +3.9% | -0.0% |
| Oct 12, 2026 | KYNDRYL TO RELEASE QUARTERLY RESULTS ON NOVEMBER 4, 2026 | +0.3% | -0.1% |
| Oct 6, 2026 | Kyndryl and WPP Expand Strategic Partnership to Drive Enterprise Transformation, Marketing Growth and Joint Go-to-Market Innovation | -1.1% | +0.5% |
- Market cap
- 30-day
- Sector
- Technology
- Industry
- EDP Services
- Listed since
- 2021
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