# Kyndryl Holdings, Inc. (KD)

Informational only - not investment advice.

CIK: 0001867072
SIC: 7373 Services-Computer Integrated Systems Design
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7373 Services-Computer Integrated Systems Design](/industry/7373/)
Latest 10-K filed: 2026-05-29
SEC page: https://www.sec.gov/edgar/browse/?CIK=1867072
Filing source: https://www.sec.gov/Archives/edgar/data/1867072/000110465926067881/kd-20260331x10k.htm

## At a glance

FY2026 · period end 2026-03-31 · filed 2026-05-29 · accession 0001104659-26-067881 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001867072.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 15,092,000,000 USD | 2026 | verified |
| Net income | 198,000,000 USD | 2026 | verified |
| Assets | 12,551,000,000 USD | 2026 | verified |
| Free cash flow | 340,000,000 USD | 2026 | computed |
| Net margin | 1.31% | 2026 | computed |
| Revenue YoY | +0.23% | 2026 | computed |
| ROE | 16.85% | 2026 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | KD | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 1.3% | 4.9% | 31 | 17 |
| Revenue growth | 0.2% | 6.8% | 24 | 18 |
| FCF margin | 2.3% | 9.5% | 17 | 19 |
| ROE | 16.9% | 8.8% | 72 | 19 |
| ROA | 1.6% | 2.6% | 42 | 20 |
| Liabilities / equity | 9.58 | 0.73 | 94 | 19 |
| Current ratio | 0.88 | 1.52 | 5 | 20 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7373 Services-Computer Integrated Systems Design, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 15092000000 | USD | 2026 | 2026-05-29 |
| Net income | 198000000 | USD | 2026 | 2026-05-29 |
| Assets | 12551000000 | USD | 2026 | 2026-05-29 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001867072.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 20,279,000,000 | 19,352,000,000 | 18,657,000,000 |  | 17,026,000,000 | 16,052,000,000 | 15,057,000,000 | 15,092,000,000 |
| Net income | -943,000,000 | -2,007,000,000 | -2,304,000,000 |  | -1,374,000,000 | -340,000,000 | 252,000,000 | 198,000,000 |
| Diluted EPS | -4.21 | -8.96 | -10.28 |  | -6.06 | -1.48 | 1.05 | 0.85 |
| Operating cash flow | 1,134,000,000 | 628,000,000 | -119,000,000 |  | 781,000,000 | 454,000,000 | 942,000,000 | 948,000,000 |
| Capital expenditures |  | 1,036,000,000 | 752,000,000 |  | 865,000,000 | 651,000,000 | 605,000,000 | 608,000,000 |
| Share buybacks |  |  |  |  |  |  | 93,000,000 | 304,000,000 |
| Assets |  | 11,205,000,000 | 13,213,000,000 | 13,442,000,000 | 11,464,000,000 | 10,590,000,000 | 10,452,000,000 | 12,551,000,000 |
| Liabilities |  | 6,274,000,000 | 10,446,000,000 | 10,730,000,000 | 10,002,000,000 | 9,468,000,000 | 9,121,000,000 | 11,259,000,000 |
| Stockholders' equity |  | 4,873,000,000 | 2,765,000,000 | 2,618,000,000 | 1,365,000,000 | 1,015,000,000 | 1,219,000,000 | 1,175,000,000 |
| Cash and cash equivalents |  | 24,000,000 | 2,223,000,000 | 2,134,000,000 | 1,847,000,000 | 1,553,000,000 | 1,786,000,000 | 2,623,000,000 |
| Free cash flow |  | -408,000,000 | -871,000,000 |  | -84,000,000 | -197,000,000 | 337,000,000 | 340,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -4.65% | -10.37% | -12.35% |  | -8.07% | -2.12% | 1.67% | 1.31% |
| Return on equity |  | -41.19% | -83.33% |  | -100.66% | -33.50% | 20.67% | 16.85% |
| Return on assets |  | -17.91% | -17.44% |  | -11.99% | -3.21% | 2.41% | 1.58% |
| Liabilities / equity |  | 1.29 | 3.78 | 4.10 | 7.33 | 9.33 | 7.48 | 9.58 |
| Current ratio |  | 0.73 | 1.30 | 1.20 | 1.02 | 1.03 | 1.07 | 0.88 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/KD/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001867072.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-06-30 |  |  | -1.11 | reported discrete quarter |
| 2023-Q2 | 2022-09-30 | 4,179,000,000 | -281,000,000 | -1.24 | reported discrete quarter |
| 2023-Q3 | 2022-12-31 | 4,303,000,000 | -106,000,000 | -0.47 | reported discrete quarter |
| 2023-Q4 | 2023-03-31 | 4,255,000,000 | -737,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-06-30 | 4,193,000,000 | -141,000,000 | -0.62 | reported discrete quarter |
| 2024-Q2 | 2023-09-30 | 4,073,000,000 | -142,000,000 | -0.62 | reported discrete quarter |
| 2024-Q3 | 2023-12-31 | 3,936,000,000 | -12,000,000 | -0.05 | reported discrete quarter |
| 2024-Q4 | 2024-03-31 | 3,850,000,000 | -45,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-06-30 | 3,739,000,000 | 11,000,000 | 0.05 | reported discrete quarter |
| 2026-Q1 | 2025-06-30 | 3,743,000,000 | 56,000,000 | 0.23 | reported discrete quarter |
| 2025-Q2 | 2025-09-30 | 3,721,000,000 | 68,000,000 | 0.29 | reported discrete quarter |
| 2025-Q3 | 2025-12-31 | 3,859,000,000 | 57,000,000 | 0.25 | reported discrete quarter |
| 2027-Q1 | 2026-06-30 | 3,618,000,000 | -55,000,000 | -0.25 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from KD's latest 10-K: [/company/KD/business/](/company/KD/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from KD's latest 10-K: [/company/KD/risk-factors/](/company/KD/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1867072/000110465926091129/kd-20260630x10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

Item 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2026

Overview

Kyndryl is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world’s largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day.

The Company is organized, managed and classified into four reportable segments by geography: United States, Japan, Principal Markets and Strategic Markets. For additional information on these segments, refer to Note 4 – Segments to our consolidated financial statements included elsewhere in this report.

Financial Performance Summary

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Three Months Ended June 30,"],["(Dollars in millions)","\u200b","2026","\u200b","2025"],["Revenue","\u200b","$","3,618","\u200b","\u200b","$","3,743","\u200b"],["Revenue growth (GAAP)","\u200b","\u200b","(3)","%","\u200b","\u200b","0","%"],["Revenue growth in constant currency*","\u200b","\u200b","(3)","%","\u200b","\u200b","(3)","%"],["Net income (loss)","\u200b","$","(55)","\u200b","\u200b","$","56","\u200b"],["Adjusted EBITDA*","\u200b","$","512","\u200b","\u200b","$","647","\u200b"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["*","Revenue growth in constant currency and adjusted EBITDA are non-GAAP financial metrics. For definitions of these metrics and a reconciliation of adjusted EBITDA to the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, see \u201cSegment Results\u201d below."]]
[[/GREPCENT_TABLE]]

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b \u200b \u200b","June 30,","\u200b","March 31,"],["(Dollars in millions)","\u200b \u200b \u200b","2026","\u200b \u200b \u200b","2026"],["Assets","\u200b","$","12,026","\u200b","$","12,551"],["Liabilities","\u200b","\u200b","10,859","\u200b","\u200b","11,259"],["Equity","\u200b","\u200b","1,167","\u200b","\u200b","1,293"]]
[[/GREPCENT_TABLE]]

​

For the three months ended June 30, 2026, we reported $3.6 billion in revenue, a decrease of 3 percent compared to the prior-year period. United States revenue increased 5 percent; Japan revenue decreased 8 percent, and increased 2 percent in constant currency; Principal Markets revenue decreased 7 percent; and Strategic Markets revenue decreased 3 percent, in each case compared to the three months ended June 30, 2025. During the period, growth in Kyndryl Consult and hyperscaler-related revenues were partially offset by lengthening sales cycles and evolving content from the Company’s former parent in the Company’s customer engagements. The net loss was $55 million in the three months ended June 30, 2026 compared to net income of $56 million in the three months ended June 30, 2025, driven by a $127 million increase in workforce rebalancing charges, a $38 million increase in impairment expense driven by the sale of a facility in the United States, and a $22 million increase in selling, general and administrative expenses driven by increased expenses to support future growth, partially offset by a lower provision for income taxes of $50 million and a $40 million gain from the sale of a wholly-owned digital solutions subsidiary in the Principal Markets segment (classified as a transaction-related benefit) in the current period.

​

Macro Dynamics

Global markets have continued to experience volatility in 2026, amid ongoing trade tensions and heightened macroeconomic uncertainties, driven by geopolitical developments and conflicts, concerns over changes in global trade policies and the imposition of import tariffs by the United States, reactions from other nations and proposed U.S.

26

Table of Contents

Management Discussion (continued)

government spending reductions. Increased economic uncertainty has impacted and may continue to impact the level and composition of global macroeconomic activity.

Recent Developments

The Company continues to cooperate with the SEC Division of Enforcement’s investigation relating to the Company’s cash management practices, related disclosures, the efficacy of the Company’s internal control over financial reporting, and certain other matters. The matter is ongoing and the Company cannot currently predict its final outcome. See Note 11 – Commitments and Contingencies in the consolidated financial statements included elsewhere in this report for further information about this and other contingency matters.

In addition, as previously disclosed, the Company identified material weaknesses in internal control over financial reporting. For more information, see “Controls and Procedures” in Part I, Item 4 in this report.

Acquisitions and Divestitures Update

For information concerning our recent acquisitions and divestitures activity, see Note 8 – Acquisitions and Divestitures in the consolidated financial statements included elsewhere in this report.

Segment Results

The following table presents our reportable segments’ revenue and adjusted EBITDA for the three months ended June 30, 2026 and 2025. Segment revenue and revenue growth in constant currency exclude any transactions between the segments.

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Three Months Ended June 30,","\u200b","Year-over-Year Change"],["(Dollars in millions)","\u200b \u200b \u200b","2026","\u200b","2025","\u200b","2026 vs. 2025"],["Revenue","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["United States","\u200b","$","954","\u200b","\u200b","$","911","\u200b","\u200b","5","%"],["Japan","\u200b","\u200b","534","\u200b","\u200b","\u200b","578","\u200b","\u200b","(8)","%"],["Principal Markets","\u200b","\u200b","1,262","\u200b","\u200b","\u200b","1,356","\u200b","\u200b","(7)","%"],["Strategic Markets","\u200b","\u200b","868","\u200b","\u200b","\u200b","898","\u200b","\u200b","(3)","%"],["Total revenue","\u200b","$","3,618","\u200b","\u200b","$","3,743","\u200b","\u200b","(3)","%"],["Revenue growth in constant currency(1)","\u200b","\u200b","(3)","%","\u200b","\u200b","(3)","%","\u200b","\u200b","\u200b"],["Adjusted EBITDA(1)","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["United States","\u200b","$","220","\u200b","\u200b","$","196","\u200b","\u200b","12","%"],["Japan","\u200b","\u200b","109","\u200b","\u200b","\u200b","115","\u200b","\u200b","(5)","%"],["Principal Markets","\u200b","\u200b","151","\u200b","\u200b","\u200b","197","\u200b","\u200b","(24)","%"],["Strategic Markets","\u200b","\u200b","62","\u200b","\u200b","\u200b","163","\u200b","\u200b","(62)","%"],["Corporate and other(2)","\u200b","\u200b","(30)","\u200b","\u200b","\u200b","(26)","\u200b","\u200b","NM","\u200b"],["Total adjusted EBITDA(1)","\u200b","$","512","\u200b","\u200b","$","647","\u200b","\u200b","(21)","%"]]
[[/GREPCENT_TABLE]]

NM – not meaningful

[[GREPCENT_TABLE]]
[["(1)","Revenue growth in constant currency and adjusted EBITDA are non-GAAP financial metrics. See the information below for definitions of these metrics and a reconciliation of adjusted EBITDA to net income (loss)."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["(2)","Represents net amounts not allocated to segments."]]
[[/GREPCENT_TABLE]]

​

We report our financial results in accordance with U.S. GAAP. We also present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe they enhance visibility to underlying results and the impact of management decisions on operational performance, enable better comparison to peer companies and allow us to provide a long-term strategic view of the business going forward.

27

Table of Contents

Management Discussion (continued)

Revenue growth in constant currency is a non-GAAP measure that eliminates the effects of exchange rate fluctuations when translating from foreign currencies to the United States dollar. It is calculated by using the average exchange rates that existed for the same period of the prior year. Constant-currency measures are provided so that revenue can be viewed without the effect of fluctuations in currency exchange rates, which is consistent with how management evaluates our revenue results and trends.

​

Additionally, management uses adjusted EBITDA to evaluate our performance. Adjusted EBITDA is a non-GAAP measure and defined as net income (loss) excluding income taxes, interest expense, depreciation and amortization (excluding depreciation of right-of-use assets and amortization of capitalized contract costs), charges related to ceasing to use leased/fixed assets, charges related to lease terminations, transaction-related costs and benefits, pension expenses other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries. We believe that adjusted EBITDA is a helpful supplemental measure to assist investors in evaluating our operating results as it excludes certain items whose fluctuation from period to period does not necessarily correspond to changes in the operations of our business.

These disclosures are provided in addition to and not as a substitute for the percentage change in revenue and profit or loss measures on a U.S. GAAP basis compared to the corresponding period in the prior year. Other companies may calculate and define similarly labeled items differently, which may limit the usefulness of these measures for comparative purposes.

The following table provides a reconciliation of U.S. GAAP net income (loss) to adjusted EBITDA:

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Three Months Ended June 30,"],["(Dollars in millions)","\u200b \u200b \u200b","2026","\u200b \u200b \u200b","2025"],["Net income (loss)","\u200b","$","(55)","\u200b","$","56"],["Provision for income taxes","\u200b","\u200b","(14)","\u200b","\u200b","36"],["Interest expense","\u200b","\u200b","34","\u200b","\u200b","19"],["Depreciation of property, equipment and capitalized software","\u200b","\u200b","183","\u200b","\u200b","191"],["Amortization expense","\u200b","\u200b","338","\u200b","\u200b","315"],["Transaction-related costs (benefits)","\u200b","\u200b","(38)","\u200b","\u200b","\u2014"],["Stock-based compensation expense","\u200b","\u200b","21","\u200b","\u200b","24"],["Impairment expense","\u200b","\u200b","38","\u200b","\u200b","\u2014"],["Other adjustments*","\u200b","\u200b","5","\u200b","\u200b","5"],["Adjusted EBITDA (non-GAAP)","\u200b","$","512","\u200b","$","647"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["*","Other adjustments represent pension expenses other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, and currency impacts of highly inflationary countries."]]
[[/GREPCENT_TABLE]]

​

United States

​

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1867072/000110465926067881/kd-20260331x10k.htm
Complete FY 2026 MD&A: /company/KD/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-05-29
Report date: 2026-03-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Included below are selected results and year-over-year comparisons for the years ended March 31, 2026, 2025 and 2024. The following discussion and analysis of our financial condition and results of operations should be read together with our audited consolidated financial statements and related notes included elsewhere in this report. For further information on the comparisons between the years ended March 31, 2025 and 2024 not covered in the “Segment Results” below, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Amendment No. 1 to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025, which was filed with the SEC on February 17, 2026 (the “2025 Form 10-K”).

Overview

Kyndryl is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world’s largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day.

The Company is organized, managed and classified into four reportable segments by geography: United States, Japan, Principal Markets and Strategic Markets. For additional information on these segments, refer to Note 4 – Segments to our consolidated financial statements included elsewhere in this report.

Financial Performance Summary

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Year Ended March 31,"],["(Dollars in millions)","\u200b","2026","\u200b","2025","\u200b","2024"],["Revenue","\u200b","$","15,092","\u200b","\u200b","$","15,057","\u200b","\u200b","$","16,052","\u200b"],["Revenue growth (GAAP)","\u200b","\u200b","0","%","\u200b","\u200b","(6)","%","\u200b","\u200b","(6)","%"],["Revenue growth in constant currency*","\u200b","\u200b","(3)","%","\u200b","\u200b","(4)","%","\u200b","\u200b","(6)","%"],["Net income (loss)","\u200b","$","198","\u200b","\u200b","$","252","\u200b","\u200b","$","(340)","\u200b"],["Adjusted EBITDA*","\u200b","$","2,672","\u200b","\u200b","$","2,516","\u200b","\u200b","$","2,367","\u200b"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["*","Revenue growth in constant currency and adjusted EBITDA are non-GAAP financial metrics. For definitions of these metrics and a reconciliation of adjusted EBITDA to the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, see \u201c\u2e3aSegment Results.\u201d"]]
[[/GREPCENT_TABLE]]

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b \u200b \u200b","March 31,","\u200b","March 31,"],["(Dollars in millions)","\u200b \u200b \u200b","2026","\u200b \u200b \u200b","2025"],["Assets","\u200b","$","12,551","\u200b","$","10,452"],["Liabilities","\u200b","\u200b","11,259","\u200b","\u200b","9,121"],["Equity","\u200b","\u200b","1,293","\u200b","\u200b","1,331"]]
[[/GREPCENT_TABLE]]

​

Fiscal 2026 Financial Performance

For the year ended March 31, 2026, we reported $15.1 billion in revenue, unchanged compared to the year ended March 31, 2025. The revenue performance included a favorable currency exchange rate impact of three points. United States revenue decreased 2 percent, Japan revenue decreased 3 percent, Principal Markets revenue increased 4 percent and Strategic Markets revenue was unchanged, compared to the year ended March 31, 2025. During the period, the Company experienced growth in Kyndryl Consult and hyperscaler-related revenues and revenue performance was unfavorably impacted by lengthening sales cycles and evolving content from the Company’s former parent in the Company’s customer engagements. Net income of $198 million decreased by $53 million versus the prior year reflecting a $138 million after-tax gain from the sale of our Securities Industry Services (“SIS”) platform in Canada (classified as a transaction-related benefit) in the prior year, partially offset by progress on our key initiatives to drive operating efficiencies. During the period, margins were adversely affected by lengthening sales cycles.

29

Table of Contents

Fiscal 2025 Financial Performance

For the year ended March 31, 2025, we reported $15.1 billion in revenue, a decline of 6 percent compared to the year ended March 31, 2024. The revenue decline was largely attributable to actions the Company has taken to reduce low-margin components of its customer relationships, as well as currency effects. United States revenue decreased 10 percent, Japan revenue increased 1 percent, Principal Markets revenue decreased 5 percent and Strategic Markets revenue decreased 8 percent, compared to the year ended March 31, 2024. Net income of $252 million improved by $592 million versus the prior year driven by progress on our key initiatives to drive operating efficiencies and increased margins, lower depreciation expense of $180 million and a $138 million after-tax gain from the sale of our SIS platform in Canada.

Macro Dynamics

Global markets have experienced volatility in 2026, amid ongoing trade tensions and heightened macroeconomic uncertainties, driven by geopolitical developments and conflicts, concerns over changes in global trade policies and the imposition of import tariffs by the United States, reactions from other nations and proposed U.S. government spending reductions. Increased economic uncertainty has impacted and may continue to impact the level and composition of global macroeconomic activity.

Recent Developments

The Company continues to cooperate with the SEC Division of Enforcement’s investigation relating to the Company’s cash management practices, related disclosures, the efficacy of the Company’s internal control over financial reporting, and certain other matters. The matter is ongoing and the Company cannot currently predict its final outcome. See Note 14 – Commitments and Contingencies in the consolidated financial statements included elsewhere in this report for further information about this and other contingency matters.

In addition, as previously disclosed, the Company identified material weaknesses in internal control over financial reporting. For more information, see “Controls and Procedures” in Part II, Item 9A in this report.

Acquisitions Update

For information concerning our recent acquisitions activity, including regarding the pending acquisition of Solvinity Group B.V., see Note 10 – Acquisitions and Divestitures in the consolidated financial statements included elsewhere in this report.

Basis of Presentation

We prepare our consolidated financial statements in accordance with U.S. GAAP, which requires us to make estimates and assumptions that impact the amounts reported and disclosed in our consolidated financial statements and the accompanying notes. We prepared these estimates based on the most current and best available information, but actual results could differ materially from these estimates and assumptions. All significant transactions and accounts between Kyndryl entities were eliminated. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

30

Table of Contents

Segment Results

The following table presents our reportable segments’ revenue and adjusted EBITDA for the years ended March 31, 2026, 2025 and 2024. Segment revenue and revenue growth in constant currency exclude any transactions between the segments.

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Year Ended March 31,","\u200b","Year-over-Year Change"],["(Dollars in millions)","\u200b \u200b \u200b","2026","\u200b","2025","\u200b","2024(3)","\u200b","2026 vs. 2025","\u200b","2025 vs. 2024"],["Revenue","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["United States","\u200b","$","3,784","\u200b","\u200b","$","3,876","\u200b","\u200b","$","4,295","\u200b","\u200b","(2)","%","\u200b","(10)","%"],["Japan","\u200b","\u200b","2,284","\u200b","\u200b","\u200b","2,358","\u200b","\u200b","\u200b","2,344","\u200b","\u200b","(3)","%","\u200b","1","%"],["Principal Markets","\u200b","\u200b","5,399","\u200b","\u200b","\u200b","5,206","\u200b","\u200b","\u200b","5,479","\u200b","\u200b","4","%","\u200b","(5)","%"],["Strategic Markets","\u200b","\u200b","3,625","\u200b","\u200b","\u200b","3,617","\u200b","\u200b","\u200b","3,934","\u200b","\u200b","0","%","\u200b","(8)","%"],["Total revenue","\u200b","$","15,092","\u200b","\u200b","$","15,057","\u200b","\u200b","$","16,052","\u200b","\u200b","0","%","\u200b","(6)","%"],["Revenue growth in constant currency(1)","\u200b","\u200b","(3)","%","\u200b","\u200b","(4)","%","\u200b","\u200b","(6)","%","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Adjusted EBITDA(1)","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["United States","\u200b","$","835","\u200b","\u200b","$","725","\u200b","\u200b","$","781","\u200b","\u200b","15","%","\u200b","(7)","%"],["Japan","\u200b","\u200b","486","\u200b","\u200b","\u200b","390","\u200b","\u200b","\u200b","361","\u200b","\u200b","25","%","\u200b","8","%"],["Principal Markets","\u200b","\u200b","834","\u200b","\u200b","\u200b","886","\u200b","\u200b","\u200b","677","\u200b","\u200b","(6)","%","\u200b","31","%"],["Strategic Markets","\u200b","\u200b","622","\u200b","\u200b","\u200b","606","\u200b","\u200b","\u200b","642","\u200b","\u200b","3","%","\u200b","(6)","%"],["Corporate and other(2)","\u200b","\u200b","(105)","\u200b","\u200b","\u200b","(90)","\u200b","\u200b","\u200b","(95)","\u200b","\u200b","NM","\u200b","\u200b","NM","\u200b"],["Total adjusted EBITDA(1)","\u200b","$","2,672","\u200b","\u200b","$","2,516","\u200b","\u200b","$","2,367","\u200b","\u200b","6","%","\u200b","6","%"]]
[[/GREPCENT_TABLE]]

NM – not meaningful

[[GREPCENT_TABLE]]
[["","(1)","Revenue growth in constant currency and adjusted EBITDA are non-GAAP financial metrics. See the information below for definitions of these metrics and a reconciliation of adjusted EBITDA to net income (loss)."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","(2)","Represents net amounts not allocated to segments."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","(3)","Effective June 1, 2024, the Company made a minor change to its geographic reportable segments to reflect how it manages its operations and measures business performance, transitioning the reporting and management of its operations in Australia/New Zealand from the Principal Markets segment to the Strategic Markets segment. Historical fiscal 2024 segment information was recast to reflect this change in the 2025 Form 10-K."]]
[[/GREPCENT_TABLE]]

We report our financial results in accordance with U.S. GAAP. We also present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe they enhance visibility to underlying results and the impact of management decisions on operational performance, enable better comparison to peer companies and allow us to provide a long-term strategic view of the business going forward.

Revenue growth in constant currency is a non-GAAP measure that eliminates the effects of

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/KD/mda/fy2026/
All MD&A years: /company/KD/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2025 MD&A](/company/KD/mda/fy2025/): filed 2025-05-30; accession 0001558370-25-008282 (https://www.sec.gov/Archives/edgar/data/1867072/000155837025008282/kd-20250331x10k.htm)
- [FY 2024 MD&A](/company/KD/mda/fy2024/): filed 2024-05-30; accession 0001558370-24-008788 (https://www.sec.gov/Archives/edgar/data/1867072/000155837024008788/kd-20240331x10k.htm)
- [FY 2023 MD&A](/company/KD/mda/fy2023/): filed 2023-05-26; accession 0001558370-23-010545 (https://www.sec.gov/Archives/edgar/data/1867072/000155837023010545/kd-20230331x10k.htm)
- [FY 2021 MD&A](/company/KD/mda/fy2021/): filed 2022-03-10; accession 0001558370-22-003291 (https://www.sec.gov/Archives/edgar/data/1867072/000155837022003291/kd-20211231x10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7373 Services-Computer Integrated Systems Design) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/KD.md · JSON record: /company/KD.json · verified financials: /company/KD/financials.json / /company/KD/financials.csv · machine TOC for the whole site: /llms.txt