Latest news with #KyndrylBridge
Yahoo
14-05-2025
- Business
- Yahoo
Kyndryl CFO: The strategy powering growth amid uncertainty
Good morning. Kyndryl's story is one of steady execution, cultural reinvention, and a return to growth. When Kyndryl was spun off by IBM in late 2021, the company had to establish itself as a dominant provider of IT infrastructure services amid naysayers and doubters. Its biggest challenge: transforming a legacy operation with declining revenues and low margins into a profitable, nimble, and growing global leader. But this wasn't Kyndryl CFO David Wyshner's first time at bat. In the past 20 years, Kyndryl's spinoff from IBM is the sixth one he's been involved in, including leading Wyndham Worldwide's separation into a privately acquired business and two public companies as CFO. Over the years, I've spoken with Wyshner about Kyndryl's progress, such as landing on the Fortune 500 for the first time in 2023. We recently talked about the company's consistent growth. Kyndryl, led by CEO Martin Schroeter, operates essential IT systems for financial institutions, airlines, retailers, and industrial companies. Even amid macroeconomic uncertainty, demand for these services remains strong, Wyshner said. He affirms that Kyndryl's focus on modernization, cloud transformation, cybersecurity, and AI-enabled operations has insulated its growth from broader economic headwinds. 'What we do is mission critical,' Wyshner told me. 'Our services are not discretionary—they're essential for our customers' operations, especially in times of uncertainty.' For its fiscal year that ended March 31, Kyndryl reported record signings of $18.2 billion—a 46% year-over-year increase—and returned to constant-currency revenue growth for the first time since the spinoff. Adjusted EBITDA rose 6% to $2.5 billion, and adjusted pretax income nearly tripled to $482 million. The company also delivered positive net income, a sharp turnaround from losses in prior years. Net income swung from a net loss of $340 million last year to a profit of $252 million. Kyndryl's 'Three-As' strategy—alliances, advanced delivery, and accounts—is paying off, Wyshner said. For example, revenue from alliances with cloud hyperscalers like Microsoft Azure, AWS, and Google Cloud reached $1.2 billion last year. The launch of its AI-powered open integration platform, Kyndryl Bridge, freed up more than 13,000 delivery professionals and generated $775 million in annualized savings, he said. The company also has addressed low-margin contracts inherited from IBM, replacing them with higher-margin, strategic deals. Last year, this effort delivered $900 million in annualized benefits. But making a spinoff successful is no small feat. Few corporate spinoffs deliver value, according to research. I asked Wyshner if he could point to at least three important elements that can help a spinoff beat the odds. 'Number one is getting the right team and the right culture in place,' he told me. 'We've really benefited from having a senior team that works well together and is focused on execution." Number two is setting the right expectations, both internally and externally. "We were spun out as a turnaround, and our business model operates under long-term contracts—so change takes time," he said. And the third element comes back to execution: "Making progress on the things that really move the needle," Wyshner said. When there's a lot of change going on, it's easy to get distracted by aspects that may not have a large impact and take attention away from things that really do matter, he said. When launching, Kyndryl was in the spotlight to deliver a turnaround story. Being just below break-even in its first year meant that 'we had a lot of work to do,' Wyshner said. Sheryl *****CFO Daily survey: By sharing your perspective in a short survey on tariffs, your experience can help others turn risk into resilience. Please take a few minutes to complete the survey and join your peers in shaping how the Office of the CFO navigates this era of trade uncertainty. Share your voice—you can complete our survey here. Thank you! This story was originally featured on
Yahoo
13-05-2025
- Business
- Yahoo
Kyndryl (NYSE:KD) Posts Better-Than-Expected Sales In Q1, Quarterly Revenue Guidance Slightly Exceeds Expectations
IT infrastructure services provider Kyndryl (NYSE:KD) reported revenue ahead of Wall Street's expectations in Q1 CY2025, but sales fell by 1.3% year on year to $3.8 billion. Guidance for next quarter's revenue was better than expected at $3.78 billion at the midpoint, 0.6% above analysts' estimates. Its non-GAAP profit of $0.52 per share was 2.7% above analysts' consensus estimates. Is now the time to buy Kyndryl? Find out in our full research report. Revenue: $3.8 billion vs analyst estimates of $3.77 billion (1.3% year-on-year decline, 0.8% beat) Adjusted EPS: $0.52 vs analyst estimates of $0.51 (2.7% beat) Adjusted EBITDA: $698 million vs analyst estimates of $709.7 million (18.4% margin, 1.7% miss) Revenue Guidance for Q2 CY2025 is $3.78 billion at the midpoint, roughly in line with what analysts were expecting Operating Margin: 4.9%, up from 1% in the same quarter last year Free Cash Flow was $341 million, up from -$31.33 million in the same quarter last year Market Capitalization: $7.74 billion "Fiscal 2025 was another year of strong execution on our strategy. In addition to returning to constant-currency revenue growth in the fourth quarter, we strengthened our leadership in innovative mission-critical technology services. We expanded our capabilities in cloud, modernization, applications, AI and security, and we further differentiated our services with Kyndryl Bridge," said Kyndryl Chairman and Chief Executive Officer Martin Schroeter. Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE:KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers. Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $15.06 billion in revenue over the past 12 months, Kyndryl is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it's challenging to maintain high growth rates when you've already captured a large portion of the addressable market. For Kyndryl to boost its sales, it likely needs to adjust its prices, launch new offerings, or lean into foreign markets. As you can see below, Kyndryl's demand was weak over the last four years. Its sales fell by 6% annually, a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a stretched historical view may miss recent innovations or disruptive industry trends. Kyndryl's annualized revenue declines of 6% over the last two years align with its four-year trend, suggesting its demand has consistently shrunk. This quarter, Kyndryl's revenue fell by 1.3% year on year to $3.8 billion but beat Wall Street's estimates by 0.8%. Company management is currently guiding for a 1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection indicates its newer products and services will catalyze better top-line performance, it is still below average for the sector. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Although Kyndryl was profitable this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 3.6% over the last five years. Unprofitable business services companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. On the plus side, Kyndryl's operating margin rose by 11.2 percentage points over the last five years. Still, it will take much more for the company to show consistent profitability. This quarter, Kyndryl generated an operating profit margin of 4.9%, up 3.9 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses. We track the change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Kyndryl's full-year EPS flipped from negative to positive over the last three years. This is encouraging and shows it's at a critical moment in its life. In Q1, Kyndryl reported EPS at $0.52, up from negative $0.01 in the same quarter last year. This print beat analysts' estimates by 2.7%. Over the next 12 months, Wall Street expects Kyndryl's full-year EPS of $1.18 to grow 75.6%. It was good to see Kyndryl beat analysts' revenue and EPS expectations. On the other hand, its EPS missed. Overall, this print was decent. The stock remained flat at $33.01 immediately following the results. Is Kyndryl an attractive investment opportunity right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
09-05-2025
- Business
- Yahoo
Kyndryl Announces Operational Leadership Rotation
NEW YORK, May 9, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, announced today a leadership rotation in some Delivery, Practice and Country roles. Xerxes Cooper will become Global Leader of Kyndryl Delivery, responsible for leading Kyndryl's delivery organization that provides mission-critical enterprise technology services to thousands of customers in more than 60 countries. Previously, Cooper was President of Kyndryl Strategic Markets where he grew signings, increased new business wins, scaled Kyndryl Consult and improved profitability. Petra Goude has been appointed President of Kyndryl Strategic Markets overseeing select countries across Europe, Asia-Pacific, the Middle East and Latin America. Previously, Goude led the Core Enterprise and zCloud practice, where she drove digital transformation for customers by modernizing their mission-critical core systems with the breadth and depth of Kyndryl's capabilities. Jamie Rutledge has been named President of Kyndryl U.S. He was previously the Global Leader of Kyndryl Delivery, where he was instrumental to the development of Kyndryl Bridge, the Company's AI-enabled operating platform. As part of the Company's 3A's strategy, Rutledge successfully led the Advanced Delivery initiative, substantially growing the adoption of Kyndryl Bridge and its use of GenAI and Agentic AI, delivering new value for customers. Hassan Zamat has been appointed Global Practice Leader for Core Enterprise and zCloud, which provides world-class services for customers as they design, modernize and manage their hybrid IT environments. In his previous role, he led Kyndryl's Accounts initiative as part of the Company's 3A's strategy, which has had a significant positive impact on Kyndryl's transformation. "These exceptional leaders have been instrumental in executing our 3A's strategy – delivering success for our customers and profitable growth for Kyndryl," said Elly Keinan, Group President, Kyndryl. "Each has been essential to implementing our key growth initiatives, such as collaborating with our Alliance partners, modernizing customers' technology environments with GenAI and Agentic AI, and cultivating our culture as an employer of choice." About KyndrylKyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit Kyndryl Investor Contact:investors@ Kyndryl Media Contact:press@ View original content to download multimedia: SOURCE Kyndryl Sign in to access your portfolio
Yahoo
09-05-2025
- Business
- Yahoo
Kyndryl Announces Operational Leadership Rotation
NEW YORK, May 9, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, announced today a leadership rotation in some Delivery, Practice and Country roles. Xerxes Cooper will become Global Leader of Kyndryl Delivery, responsible for leading Kyndryl's delivery organization that provides mission-critical enterprise technology services to thousands of customers in more than 60 countries. Previously, Cooper was President of Kyndryl Strategic Markets where he grew signings, increased new business wins, scaled Kyndryl Consult and improved profitability. Petra Goude has been appointed President of Kyndryl Strategic Markets overseeing select countries across Europe, Asia-Pacific, the Middle East and Latin America. Previously, Goude led the Core Enterprise and zCloud practice, where she drove digital transformation for customers by modernizing their mission-critical core systems with the breadth and depth of Kyndryl's capabilities. Jamie Rutledge has been named President of Kyndryl U.S. He was previously the Global Leader of Kyndryl Delivery, where he was instrumental to the development of Kyndryl Bridge, the Company's AI-enabled operating platform. As part of the Company's 3A's strategy, Rutledge successfully led the Advanced Delivery initiative, substantially growing the adoption of Kyndryl Bridge and its use of GenAI and Agentic AI, delivering new value for customers. Hassan Zamat has been appointed Global Practice Leader for Core Enterprise and zCloud, which provides world-class services for customers as they design, modernize and manage their hybrid IT environments. In his previous role, he led Kyndryl's Accounts initiative as part of the Company's 3A's strategy, which has had a significant positive impact on Kyndryl's transformation. "These exceptional leaders have been instrumental in executing our 3A's strategy – delivering success for our customers and profitable growth for Kyndryl," said Elly Keinan, Group President, Kyndryl. "Each has been essential to implementing our key growth initiatives, such as collaborating with our Alliance partners, modernizing customers' technology environments with GenAI and Agentic AI, and cultivating our culture as an employer of choice." About KyndrylKyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit Kyndryl Investor Contact:investors@ Kyndryl Media Contact:press@ View original content to download multimedia: SOURCE Kyndryl Sign in to access your portfolio
Yahoo
14-04-2025
- Business
- Yahoo
Kyndryl Ranked as a Leader in ISG Provider Lens™ Quadrant Report 2025 for Mainframes
Kyndryl recognized for combining generative AI and automation, optimizing environments and tailoring solutions to customers' needs NEW YORK, April 14, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced that research company ISG has recognized Kyndryl as a Leader in all regions for 'Mainframe Optimization Services', 'Mainframe as a Service', and 'Mainframe Operations' in the ISG Provider Lens™ Quadrant Report 2025. In the US, Kyndryl has also been identified as a Leader in 'Application Modernization Services'. A complimentary copy of the full report is available here. The ISG Provider Lens research report, produced by Information Services Group (ISG), compares strengths, challenges and competitive differentiators of providers across Europe, Brazil, the United States, and United States Public Sector. "Our research shows that Kyndryl is a leading provider of mainframe services with a robust business and extensive market presence," said Pedro L. Bicudo Maschio, Distinguished Analyst and Author at ISG. "The company combines technology background, mainframe expertise, GenAI, Kyndryl Bridge's data insights and Kyndryl Vital's problem-solving and innovation methodology to create unique modernizations tailored to meet client goals." "As organizations aim to increase agility, reduce costs and tackle skills challenges, they are under increasing pressure to modernize their mainframe environments," said Petra Goude, Global Practice Leader for Core Enterprise & zCloud at Kyndryl. "We believe this accolade is a testament to our proven strength in the market, the investments we've made in this area, and the unmatched skills and expertise of our thousands of mainframe professionals who are helping customers run and transform their most mission-critical environments and deploy AI and generative AI to drive better business outcomes." Kyndryl has been ranked a Leader in the quadrants for: Mainframe Optimization Services - helping customers modernize workloads on the mainframe. The report notes that Kyndryl operates the largest mainframe infrastructure globally and its consulting business continues to grow by leveraging its vast mainframe expertise to support customers in their modernization efforts. Mainframe as a Service - providing shared mainframe infrastructure in a pay-per-use model. ISG highlights that Kyndryl continues to lead with the largest MIPS footprint, offering operational scale and capacity to meet diverse customer needs and an MFaaS portfolio featuring zCloud for IBM Z and C4i for IBM i to support computing demands with mainframe experts. Mainframe Operations - providing operations, support and backup services to run mainframes on-premises, in colocation data centers or at the provider's facilities. The report states Kyndryl has the most significant footprint in mainframe operations and uses its AI-powered open integration platform Kyndryl Bridge to automate management tasks, optimizing performance and costs. Application Modernization Services (US) - transforming applications to migrate from mainframe to cloud. Kyndryl is identified as a Leader in the US for leveraging its deep technology expertise and robust mainframe business to gather best practices and manage complex projects with many modernization partners. According to the ISG research, generative AI has a dual effect on mainframe modernization, accelerating migrations off the mainframe and providing customers with tools to extend their use of mainframes. Generative AI features of mainframe services reduce cost and development time in application modernization and cloud migration. Kyndryl has strongly focused on driving AI and generative AI adoption to accelerate mainframe modernization for customers. Its 2024 Mainframe Modernization Survey also showed that 86% of organizations are moving fast to adopt AI to accelerate mainframe modernization, and almost half aim to use generative AI to unlock and transform critical mainframe data into actionable insights. About ISG ISG (Information Services Group) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. For more information, please visit: About Kyndryl Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, please visit: Kyndryl Press Contact press@ View original content to download multimedia: SOURCE Kyndryl Sign in to access your portfolio
