Kyndryl Holdings, Inc. Q3 2026 Earnings Recap

Kyndryl Holdings, Inc. reported solid Q3 fiscal 2026 results with 3% revenue growth year-over-year, driven by margin expansion and a robust $3.9 billion in contract signings, although longer sales cycles affected near-term outlook.

Key Takeaways

• Achieved positive free cash flow and improved margins alongside 3% top-line growth in constant currency.
• Secured $3.9 billion in new signings, maintaining a trailing twelve-month revenue book-to-bill ratio above 1.0.
• Lengthened sales cycles, particularly in consulting, due to evolving customer consumption models and regulatory uncertainties.
• Current labor costs have increased due to unexpected lower employee attrition impacting profitability.
• On track to exceed $2 billion in hyperscaler-related revenue by the end of 2026, demonstrating strong market positioning and future growth potential.