On Monday, Kyndryl Holdings, Inc. (NYSE:KD) shares plunged significantly after it reported worse-than-expected third-quarter results and cut its FY26 adjusted pretax income and free cash flow guidance.
Also, JP Morgan downgraded the company’s shares and slashed the price forecast following the earnings miss.
• Kyndryl Holdings stock is testing key support levels. Why is KD stock at lows?
Earnings Snapshot
The provider of IT infrastructure services reported adjusted earnings per share of 52 cents, missing the analyst consensus estimate of 60 cents.
Quarterly revenues of $3.86 billion, up 3% year-over-year (Y/Y), slightly missed the street view of $3.89 billion.
The company reported signings of $15.4 billion for the trailing 12 months ended Dec. 31, 2025.
In the third quarter, Kyndryl signed 11 customer contracts, surpassing $50 million each.
Adjusted EBITDA was $696 million, a decline from $704 million in the year-ago quarter.
During the quarter, the anticipated pretax margin on new contract signings remained in the high single digits, consistent with recent periods.
Kyndryl repurchased …