Kyndryl Holdings 2026 Q2 Earnings Record Net Income Surges 258.1% as Profitability Returns

Kyndryl Holdings (KD) reported Q2 2026 earnings that beat consensus EPS estimates but missed revenue forecasts, . The company reaffirmed its fiscal 2026 guidance, emphasizing a focus on margin expansion and disciplined capital allocation.

Revenue

, reflecting broader market challenges. The drop was attributed to a 4-point drag from the removal of low-margin hardware and software content, as the company prioritized margin expansion over top-line growth.

Earnings/Net Income

, . , . , highlighting a successful operational turnaround.

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Price Action

Kyndryl’s stock price faced downward pressure in the post-earnings period, , , . These declines reflect investor caution amid mixed earnings results and near-term revenue challenges, despite the company’s strong net income performance and guidance reaffirmation.

CEO Commentary

CEO highlighted momentum in strategic growth areas, , hyperscaler alliances, and AI/cloud/security services. He emphasized the AI-driven Kyndryl Bridge platform as a key enabler for modernization and value creation. The CEO reaffirmed multi-year objectives, , and a focus on margin expansion and disciplined capital allocation.

Guidance

Kyndryl reaffirmed its fiscal 2026 guidance, , , , . The company expects stronger second-half revenue driven by a robust backlog, Kyndryl Consult growth, and hyperscaler-related revenue (up 65% YoY). .

Post-Earnings Price Action Review

Kyndryl’s stock experienced a sharp post-earnings correction, , reflecting investor skepticism despite improved profitability. The selloff contrasts with the company’s reaffirmed guidance and strategic progress in AI and cloud services. Analysts note that while the earnings beat on the bottom line is positive, revenue shortfalls and near-term growth pressures may weigh on sentiment until second-half momentum materializes.

Additional News

Kyndryl announced a $400 million increase in its share repurchase program, signaling confidence in long-term cash flow potential. The company also finalized the acquisition of Solvinity Group, a Dutch cloud services provider, to enhance its sovereign cloud offerings. CEO Martin Schroeter emphasized AI’s role in Kyndryl’s strategy, . These moves underscore the company’s focus on shareholder returns, strategic M&A, and AI-driven growth.