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NEW YORK - Kyndryl Holdings Inc (NYSE:KD) reported fourth quarter earnings that fell short of analyst expectations, though revenue slightly exceeded estimates. The IT services company’s shares edged down 0.4% in after-hours trading Wednesday following the release.
For the quarter ended March 31, 2025, Kyndryl posted adjusted earnings per share of $0.52, missing the consensus estimate of $0.57. Revenue came in at $3.8 billion, marginally above the $3.77 billion analysts were expecting.
The company reported constant-currency revenue growth of 1.3% year-over-year for the quarter. Adjusted EBITDA rose 23% to $698 million.
"Fiscal 2025 was another year of strong execution on our strategy. In addition to returning to constant-currency revenue growth in the fourth quarter, we strengthened our leadership in innovative mission-critical technology services," said Kyndryl Chairman and CEO Martin Schroeter.
For fiscal year 2026, Kyndryl forecasts adjusted pretax income of at least $725 million, representing a year-over-year increase of at least $243 million. The company expects an adjusted EBITDA margin of approximately 18%, up about 130 basis points from fiscal 2025.
Kyndryl projects adjusted free cash flow of around $550 million for fiscal 2026. The outlook assumes constant-currency revenue growth of 1%.
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