Kyndryl Holdings Inc (NYSE:KD) Reports Mixed Q1 2026 Earnings with Revenue Miss and EPS Beat

Kyndryl Holdings Inc (NYSE:KD) reported its first-quarter fiscal 2026 earnings, delivering a mixed performance relative to analyst expectations. The company, which specializes in mission-critical enterprise technology services, posted revenue of $3.74 billion and earnings per share (EPS) of $0.37 for the quarter ended June 30, 2025.

Key Financial Highlights vs. Estimates

• Revenue Miss: Reported revenue of $3.74 billion fell short of the consensus estimate of $3.91 billion, marking a 4.3% shortfall.
• EPS Beat: Despite the revenue miss, Kyndryl exceeded EPS expectations, with $0.37 per share compared to the estimated $0.32.

Market Reaction

Following the earnings release, Kyndryl’s stock declined sharply in after-hours trading, dropping 7.7%. This suggests investor disappointment, likely driven by the revenue miss overshadowing the EPS beat. Over the past month, the stock has been under pressure, declining 13.9%, while short-term performance (last two weeks) showed a milder drop of 6%.

Forward-Looking Estimates

Analysts project the following for Kyndryl’s upcoming quarters:

• Q2 2026: Revenue expected at $3.98 billion, with EPS estimated at $0.41.
• Full-Year 2026: Revenue forecast stands at $15.94 billion, with EPS projected at $1.81.

The company did not provide an official outlook in its press release, leaving investors to rely on external analyst estimates. The lack of forward guidance may have contributed to the negative after-hours reaction, as uncertainty often weighs on market sentiment.

Press Release Summary

Kyndryl’s earnings announcement emphasized its role as a leading provider of enterprise IT infrastructure services, including cloud, AI, and digital workplace solutions. However, no major strategic updates or operational milestones were highlighted that could offset the weaker-than-expected revenue figures.

For a deeper dive into Kyndryl’s earnings history and future estimates, review the full details here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.