Kyndryl Holdings, Inc. Q2 2027 Earnings Recap

Kyndryl shares jumped 30.1% after earnings, with investors responding to the reaffirmed full-year outlook and signs of future growth in consulting and modernization. The transcript also points to a key near-term constraint: expected cost savings arrive in the second half, while savings are largely intended to offset first-half charges.

Key Takeaways

• Management reaffirmed its full-year outlook and said it remains on track toward its fiscal 2028 financial objectives.
• Over the last 12 months, Kyndryl signed 43 deals worth more than $50 million, including 11 in the second quarter; about one-third of their value included scope expansions or new logos, versus about one-quarter a year earlier.
• Kyndryl Consult signings exceeded revenue over the last 12 months, and the company said revenue grew for three consecutive quarters in the U.S.
• Workforce rebalancing is substantially complete. Savings are expected in the second half, largely offsetting first-half charges; fiscal 2028 annualized operating expense savings are still projected at approximately $400 million–$500 million.
• Management cited average projected pre-tax margins in the high single digits for deals combining advisory services and delivery.