IT infrastructure services provider Kyndryl (NYSE: KD) will be announcing earnings results this Tuesday after the bell. Here’s what to look for.
Kyndryl missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $3.74 billion, flat year on year. It was a slower quarter for the company, with a slight miss of analysts’ revenue estimates and revenue guidance for next quarter missing analysts’ expectations.
Is Kyndryl a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Kyndryl’s revenue to grow 1.5% year on year to $3.83 billion, a reversal from the 7.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
Analysts covering the company have generally 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 three times over the last two years.
Looking at Kyndryl’s peers in the it services & consulting segment, some have already reported their Q3 results, giving us a hint as to what we can expect. IBM delivered year-on-year revenue growth of 9.1%, beating analysts’ expectations by 1.4%, and ASGN reported a revenue decline of 1.9%, topping estimates by 0.7%. IBM traded down 1.1% following the results while ASGN was also down 8%.
Read our full analysis of IBM’s results here and ASGN’s results here.
Questions about potential tariffs and corporate tax changes have caused much volatility 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 2.9% on average over the last month. Kyndryl is down 5.6% during the same time and is heading into earnings with an average analyst price target of $42.50 (compared to the current share price of $28.92).
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