Kyndryl's Q4 2025: Unraveling Contradictions in Revenue Strategy, Macroeconomic Impact, and Consult Growth

Revenue growth strategy and expectations, impact of macroeconomic uncertainties, revenue growth and signings momentum, consult revenue growth and signings, Kyndryl Consult growth and sustainability are the key contradictions discussed in Kyndryl's latest 2025Q4 earnings call.



Revenue Growth and Market Leadership:
- Kyndryl achieved a 48% increase in constant currency signings to more than $18 billion in fiscal 2025.
- The company returned to positive constant currency revenue growth in the fourth quarter.
- This growth was driven by the execution of their strategic plan focused on building capabilities, skills, partnerships, and innovation to drive sustainable growth in mission critical technology services.

Consulting and Margin Expansion:
- Consult revenue grew more than 25% in fiscal 2025, and signings grew 50% in constant currency.
- Kyndryl's adjusted pretax income increased by $317 million to $482 million.
- The growth in consulting services and margin expansion were driven by strategic initiatives like the 3A's ( ACTION, Alliance, and Advanced Delivery), which led to margin improvements and value creation.

Hyperscaler Alliance and Advanced Delivery:
- Hyperscaler-related revenue more than doubled in fiscal 2025 to $1.2 billion.
- Kyndryl freed up more than 13,000 delivery professionals to address new revenue opportunities.
- This was achieved through the advanced delivery initiatives powered by Kyndryl Bridge, which enhanced service levels, reduced costs, and increased profitability.

Operational and Financial Performance:
- Kyndryl generated $446 million in adjusted free cash flow in fiscal 2025, a 53% increase year over year.
- The company's adjusted EBITDA margin increased to 18.4% in Q4, up 370 basis points year over year.
- The strong financial performance was driven by operational efficiencies, technological advancements, and strategic cost management.