IT infrastructure services provider Kyndryl (NYSE:KD) will be reporting results this Monday after the bell. Here’s what you need to know.
Kyndryl beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $3.8 billion, down 1.3% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
Is Kyndryl a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kyndryl’s revenue to grow 1.6% year on year to $3.80 billion, a reversal from the 10.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kyndryl has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Kyndryl’s peers in the it services & consulting segment, some have already reported their Q2 results, giving us a hint as to what we can expect. DXC’s revenues decreased 2.4% year on year, beating analysts’ expectations by 2.4%, and Grid Dynamics reported revenues up 21.7%, topping estimates by 0.5%. DXC traded down 5.7% following the results while Grid Dynamics was also down 16.4%.
Read our full analysis of DXC’s results here and Grid Dynamics’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the it services & consulting stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.4% on average over the last month. Kyndryl is down 13.1% during the same time and is heading into earnings with an average analyst price target of $48 (compared to the current share price of $37.05).
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