Kyndryl Holdings Inc. saw its stock price climb by 30% following the release of its second-quarter fiscal 2027 financial results. The company reported revenue of $3.9 billion, exceeding analyst expectations by approximately $50 million despite a 1.9% year-over-year decline.
The growth was driven by the Kyndryl Consult division, which saw revenue increase by 4.2% year-over-year. This unit, which focuses on strategic professional services and AI-related projects, generated $3.6 billion over the past 12 months, with new contract signings rising by 19.1%.
Revenue related to hyperscalers reached over $500 million in the second quarter, marking a 27.2% increase compared to the previous year. The company also reported an adjusted net income of $92 million, or $0.42 per share, surpassing the consensus estimate of $0.41 per share.
Kyndryl is implementing a cost-reduction program expected to save up to $500 million annually starting in fiscal year 2028. The second-quarter results exclude a $38 million charge related to workforce reductions. For the current fiscal year, the company forecasts adjusted pretax income between $600 million and $700 million.
