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Kyndryl

Managed IT infrastructure and cloud services

Overview

Kyndryl provides managed IT infrastructure services for large enterprises, helping them run and modernize their technology environments. Its offerings cover cloud adoption, cybersecurity, security operations, and digital workplace services, all delivered under long-term managed-service contracts. The company works by partnering with major technology providers (including Microsoft) to offer integrated, end-to-end solutions, often complemented by a new security operations center (SOC) and other security capabilities. This focus sets it apart from competitors through scale, enterprise-grade governance, and a history rooted in IBM’s infrastructure services, now independent but aligned with large technology partners. The goal is to support digital transformation by providing reliable, scalable, and secure infrastructure management that enables enterprises to operate efficiently and securely in a cloud-enabled world.

Significant Headcount Growth

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About Kyndryl

Simplify's Rating
Why Kyndryl is rated
B-
Rated B on Competitive Edge
Rated B on Growth Potential
Rated C on Differentiation

Industries

ConsultingEnterprise SoftwareCybersecurity

Company Size

10,001+

Company Stage

IPO

Headquarters

New York City, New York

Founded

2021

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What believers are saying

  • October 2, 2026 Luxembourg lab targets 250 jobs by 2030, expanding EU demand.
  • Dallas opened October 1, 2026, adding 300 roles in AI and design engineering.
  • Fitch rated Kyndryl's new senior notes BBB on September 24, 2026.

What critics are saying

  • A March 2026 securities fraud class action alleges misstated financials and weak internal controls.
  • Kyndryl owes $700 million October 2026 notes; refinancing still pressures margins.
  • If AI-lab spending fails, Kyndryl remains a low-margin managed-services shell.

What makes Kyndryl unique

  • IBM spin-off heritage gives Kyndryl deep mainframe, hybrid-cloud, and regulated-industry credibility.
  • Agentic AI Labs in Dallas, Liverpool, and Luxembourg convert consulting into prototypes.
  • BIL named Kyndryl Luxembourg's founding client, anchoring the EU lab in banking.

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Funding

Total Funding

$500M

Above

Industry Average

Funded Over

1 Rounds

Post IPO Debt funding comparison data is currently unavailable. We're working to provide this information soon!
Post IPO Debt Funding Comparison Coming Soon

Benefits

  • Professional Development Budget
  • Hybrid Work Options

Stock Price

Growth & Insights and Company News

6 month growth

4%

1 year growth

4%

2 year growth

4%
MLQ AI
Nov 6th, 2026
Kyndryl Q2 FY2027 revenue slips 1.9% to $3.65 billion; net income $59 million as company reaffirms full-year outlook.

Kyndryl Q2 FY2027 revenue slips 1.9% to $3.65 billion; net income $59 million as company reaffirms full-year outlook. Key points * Revenue fell 1.9% to $3.65 billion (down 0.8% in constant currency); net income was $59 million, or $0.27 a diluted share, versus $68 million a year earlier [[1]]. * Hyperscaler-related revenue rose 27.2% to more than $550 million and second-quarter signings were $4.1 billion [[1]]. * Kyndryl reaffirmed fiscal 2027 guidance: adjusted pretax income of $600 million to $700 million and free cash flow of $400 million to $500 million [[1]]. Kyndryl reported revenue of $3.65 billion for its fiscal second quarter ended Sept. 30, 2026, down 1.9% from a year earlier and 0.8% in constant currency. The IT infrastructure services company reaffirmed its fiscal 2027 outlook [[1]]. Net income was $59 million, or $0.27 per diluted share, compared with $68 million, or $0.29, a year earlier. Pretax income rose to $112 million from $98 million, but a $53 million tax provision cut the bottom line. The quarter carried $38 million of workforce-rebalancing charges. Adjusted EBITDA rose to $699 million from $641 million [[1]]. Quarter at a glance. | Metric | Q2 FY27 (Sep 2026) | Q1 FY27 (Jun 2026) | Q2 FY26 (Sep 2025) | | Revenue | $3,651M | $3,618M | $3,721M | | Gross margin* | 23.5% | 21.4% | 21.5% | | Operating income* | $188M | $108M | $142M | | Pretax income (loss) | $112M | $(69)M | $98M | | Net income (loss) | $59M | $(55)M | $68M | | Diluted EPS | $0.27 | $(0.25) | $0.29 | | Adjusted EBITDA | $699M | $512M | $641M | | Signings | $4.1B | $3.9B | n/d | *Kyndryl does not report gross profit or operating income; gross margin is revenue less cost of services, and operating income is that figure less SG&A, before workforce-rebalancing and transaction charges, from MLQ's SEC-derived financials [[3]]. Q1 figures are from the August release [[2]]. Growth lines and guidance. Kyndryl Consult revenue grew 4.2%, and trailing-twelve-month hyperscaler-related revenue reached $2.1 billion, up 38.5%. The company signed 11 contracts worth more than $50 million each in the quarter. Free cash flow was a use of $34 million [[1]]. For fiscal 2027, which ends March 31, 2027, Kyndryl still expects constant-currency revenue flat to down 2%, adjusted pretax income of $600 million to $700 million and free cash flow of $400 million to $500 million. It expects about $200 million of rebalancing charges this year, $190 million of them already taken, and $400 million to $500 million of annualized savings in fiscal 2028 [[1]]. "Strong signings and continued growth in Kyndryl Consult and hyperscaler-related revenue reinforce our confidence in our fiscal 2027 outlook," CEO Martin Schroeter said [[1]]. Companies mentioned. At the intersection of AI, tech, and markets. The stories that matter, in one email. Free - unsubscribe anytime.

Dutch IT Channel
Nov 6th, 2026
Kyndryl sees profit rise despite slight revenue decline.

Kyndryl sees profit rise despite slight revenue decline. IT service provider Kyndryl has published its financial results for the second quarter of fiscal year 2027, ended on September 30, 2026. Despite a slight revenue decline, the company is strengthening its profitability and reiterating its outlook for the full year. Quarterly revenue came in at $3.7 billion, a decline of 1.9% on a reported basis (0.8% at constant exchange rates). The operating result showed growth, however: profit before taxes rose from $98 million last year to $112 million. Net profit was $59 million, compared with $68 million a year earlier. Adjusted pre-tax result climbed to $150 million and adjusted EBITDA rose to $699 million. Growth in strategic segments supports the results. Revenue from the Kyndryl Consult advisory division rose 4.2% year on year, while revenue related to cloud giants (hyperscalers) grew 27.2% to more than $550 million. CEO Martin Schroeter points to continued demand for AI-driven modernization and expertise in complex technology environments. Kyndryl is also focusing on further streamlining. In the past quarter, $38 million in reorganization costs were incurred. From fiscal year 2028, these restructurings should deliver annual savings of $400 to $500 million. In addition, the company strengthened its market position in September with the acquisition of Healthcare IT Leaders. The company maintains its full-year outlook for fiscal year 2027: an adjusted pre-tax result of $600 to $700 million, free cash flow of $400 to $500 million, and revenue performance at constant exchange rates ranging from flat to a 2% decline.

TechDay
Nov 5th, 2026
Kyndryl & AWS launch modernisation service for firms.

Kyndryl & AWS launch modernisation service for firms. Fri, 6th Nov 2026 (Today) Kyndryl has launched an integrated modernisation offering with Amazon Web Services that combines Kyndryl Agentic Modernization with AWS Transform. The launch comes as many organisations fall behind on technology modernisation programmes, according to Kyndryl. The joint offer targets companies updating applications, infrastructure and core systems. Kyndryl and AWS are positioning it as a way to support large-scale planning and execution. Kyndryl said the service combines its software-led service model, AI-enabled workflows and engineering support with AWS Transform. The combined approach is intended to help customers assess current systems, map out modernisation programmes and carry them through in a more standardised way. It is also designed to reduce transformation risk and provide a technology base suited to AI-related work. Modernisation gap Kyndryl used findings from its global modernisation report to frame the announcement. Nearly half of respondents said they were behind schedule on their modernisation goals, according to the company. The release also pointed to a gap between organisations already using agentic AI in production for modernisation and those that are not. Among early adopters, 67% said they were ahead of or on track with their goals, compared with 51% of other organisations. In Canada, Kyndryl said 47% of organisations had fallen behind in their modernisation plans. Customers using the new integrated service will be able to take a continuous approach to updating applications, infrastructure and core systems, while also addressing technical debt and operational efficiency, Kyndryl said. Service model Kyndryl described its services-as-software model as a way to deliver services through software-driven automation, intelligence and digital workflows. It said the model is built on the Kyndryl Agentic Framework and scaled through Kyndryl Bridge. The structure is intended to let customers run complex modernisation programmes with pre-built agentic workflows rather than relying entirely on scarce specialist skills. Kyndryl said the model also gives customers access to expertise in cloud, security, compliance, FinOps and technology operations while maintaining governance and business continuity. The AWS element centres on AWS Transform, which Kyndryl said it has joined as a launch partner. The companies said they have developed an approach that shifts customers away from one-off modernisation projects and towards repeatable processes for updating technology environments over time. The pitch reflects a broader shift in enterprise IT as companies face pressure to replace ageing systems while preparing data, applications and infrastructure for AI-related use. For many large organisations, the challenge is not only the cost of replacing legacy technology but also the operational risk of changing systems that support day-to-day business. Those pressures have increased demand for tools and service models that break modernisation into smaller, more manageable steps. By pairing workflow automation with advisory and engineering work, suppliers are trying to show that major updates can be handled more consistently across large estates of applications and infrastructure. Shawn D'Souza, Global Modernization Leader at Kyndryl, said the company sees modernisation as an ongoing discipline rather than a one-time programme. "Many organizations are still treating modernization as a destination when it should be a continuous business capability," said Shawn D'Souza, Global Modernization Leader at Kyndryl. "Organisations that can continuously modernize applications, infrastructure and core systems will be better positioned to adopt AI, adapt to change and create long-term value. Together with AWS, we're helping customers build that capability at scale," D'Souza said.

TechDay
Nov 5th, 2026
Kyndryl & AWS launch modernisation service for firms.

Kyndryl & AWS launch modernisation service for firms. Fri, 6th Nov 2026 (Today) Kyndryl has launched an integrated modernisation offering with Amazon Web Services that combines Kyndryl Agentic Modernization with AWS Transform. The launch comes as many organisations fall behind on technology modernisation programmes, according to Kyndryl. The joint offer targets companies updating applications, infrastructure and core systems. Kyndryl and AWS are positioning it as a way to support large-scale planning and execution. Kyndryl said the service combines its software-led service model, AI-enabled workflows and engineering support with AWS Transform. The combined approach is intended to help customers assess current systems, map out modernisation programmes and carry them through in a more standardised way. It is also designed to reduce transformation risk and provide a technology base suited to AI-related work. Modernisation gap Kyndryl used findings from its global modernisation report to frame the announcement. Nearly half of respondents said they were behind schedule on their modernisation goals, according to the company. The release also pointed to a gap between organisations already using agentic AI in production for modernisation and those that are not. Among early adopters, 67% said they were ahead of or on track with their goals, compared with 51% of other organisations. In Canada, Kyndryl said 47% of organisations had fallen behind in their modernisation plans. Customers using the new integrated service will be able to take a continuous approach to updating applications, infrastructure and core systems, while also addressing technical debt and operational efficiency, Kyndryl said. Service model Kyndryl described its services-as-software model as a way to deliver services through software-driven automation, intelligence and digital workflows. It said the model is built on the Kyndryl Agentic Framework and scaled through Kyndryl Bridge. The structure is intended to let customers run complex modernisation programmes with pre-built agentic workflows rather than relying entirely on scarce specialist skills. Kyndryl said the model also gives customers access to expertise in cloud, security, compliance, FinOps and technology operations while maintaining governance and business continuity. The AWS element centres on AWS Transform, which Kyndryl said it has joined as a launch partner. The companies said they have developed an approach that shifts customers away from one-off modernisation projects and towards repeatable processes for updating technology environments over time. The pitch reflects a broader shift in enterprise IT as companies face pressure to replace ageing systems while preparing data, applications and infrastructure for AI-related use. For many large organisations, the challenge is not only the cost of replacing legacy technology but also the operational risk of changing systems that support day-to-day business. Those pressures have increased demand for tools and service models that break modernisation into smaller, more manageable steps. By pairing workflow automation with advisory and engineering work, suppliers are trying to show that major updates can be handled more consistently across large estates of applications and infrastructure. Shawn D'Souza, Global Modernization Leader at Kyndryl, said the company sees modernisation as an ongoing discipline rather than a one-time programme. "Many organizations are still treating modernization as a destination when it should be a continuous business capability," said Shawn D'Souza, Global Modernization Leader at Kyndryl. "Organisations that can continuously modernize applications, infrastructure and core systems will be better positioned to adopt AI, adapt to change and create long-term value. Together with AWS, we're helping customers build that capability at scale," D'Souza said.

PR Newswire
Nov 5th, 2026
Kyndryl teams with AWS on agentic AI to speed up enterprise modernisation

Kyndryl has launched a modernization service with Amazon Web Services (AWS) that pairs its Kyndryl Agentic Modernization services-as-software with AWS Transform. The company says the tool helps customers update applications, infrastructure, and core systems faster and with less risk. Kyndryl cited its first global modernization report, in which nearly 50% of respondents said they are behind schedule on modernization goals. Among early adopters of agentic AI in production, 67% said they are ahead of or on track, compared with 51% of other organisations. "Many organizations are still treating modernization as a destination when it should be a continuous business capability," said Shawn D'Souza, Kyndryl's global modernization leader. Kyndryl is a launch partner for AWS Transform.

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