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Kyndryl Achieves Profitability in Q2 Amid Strategic Revenue Changes
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Heartspace News Desk
•Source: Reuters
TL;DR
Kyndryl's Q2 saw revenue decline by about 1% to $3.72 billion, but the company reported a $68 million net profit, reversing last year's $43 million loss due to portfolio restructuring and low-margin contract reductions. Increased revenue from hyperscaler partnerships, up 65% to $440 million, puts Kyndryl on track to exceed its $1.8 billion fiscal year goal, and the company reaffirmed its forecast of 1% constant-currency revenue growth for fiscal year 2026.
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Key takeaways
- Kyndryl Holdings, spun off from IBM, reported a profitable second quarter despite a revenue decrease of approximately 1% to $3
- 72 billion, according to Reuters
- The company achieved a net income of $68 million, a considerable improvement compared to the $43 million loss reported during the same period last year
Kyndryl Holdings, spun off from IBM, reported a profitable second quarter despite a revenue decrease of approximately 1% to $3.72 billion, according to Reuters. The company achieved a net income of $68 million, a considerable improvement compared to the $43 million loss reported during the same period last year. This positive shift is attributed to strategic portfolio restructuring, including the reduction of low-margin contracts. Revenue generated from hyperscaler partnerships increased by 65% to $440 million. Consequently, Kyndryl is on pace to surpass its fiscal year hyperscaler revenue target of $1.8 billion. The company reaffirmed its forecast of 1% constant-currency revenue growth for fiscal year 2026.
Related Topics
Kyndrylprofitabilityrevenuehyperscalerscloud providerscontract renegotiation
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