Kyndryl reported fiscal 2026 revenue of $15.1 billion as enterprises increased spending on agentic AI, cloud modernization, cybersecurity, and automation services to modernize mission-critical IT infrastructure.
Kyndryl said its strategy around AI-enabled operations and hyperscaler partnerships continued to strengthen profitability and long-term contract quality despite flat annual revenue growth.
Kyndryl posted pretax income of $414 million for fiscal 2026, compared with $435 million in the previous year, while adjusted pretax income increased 21 percent to $581 million. Adjusted EBITDA rose 6 percent to $2.7 billion, highlighting improving operational efficiency and margin expansion. Net income reached $198 million, or $0.85 per diluted share, compared with $252 million a year earlier.
Kyndryl said disciplined execution, AI-enabled delivery models, and stronger contract economics supported its profitability targets heading into fiscal 2027.
A major growth driver for the company was hyperscaler-related business. Kyndryl generated $1.9 billion in hyperscaler-related revenue during fiscal 2026, representing 59 percent growth and surpassing its internal target of $1.8 billion. The company has been expanding partnerships across public cloud ecosystems to support enterprise migration and hybrid cloud deployments.
Kyndryl Consult also delivered strong growth momentum. Revenue from the consulting business increased 18 percent year-over-year to $3.5 billion, while annual signings reached $4 billion. The company said enterprises are increasingly seeking advisory and implementation support for AI adoption, cloud transformation, and IT modernization programs.
Total signings for fiscal 2026 reached $13.5 billion, including 38 contracts valued at more than $50 million. More than 30 percent of those large deals involved new scope and new customers, doubling from approximately 15 percent in the previous year. The company noted that projected pretax margins on fiscal 2026 signings were in the high-single-digit range, reflecting improved contract quality and pricing discipline.
Artificial intelligence remained central to Kyndryl’s growth strategy during the year. The company launched its Kyndryl Agentic AI Framework to help enterprises deploy and scale agentic AI across on-premises, cloud, and hybrid environments. It also introduced new offerings including Agentic AI Digital Trust, agentic AI services for mainframe modernization, workforce readiness tools, and Agentic Service Management for autonomous IT operations.
Kyndryl said its Advanced Delivery initiative, powered by AI-enabled automation through the Kyndryl Bridge platform, continued to drive margin expansion and operational efficiencies. CEO Martin Schroeter said enterprises are increasingly relying on Kyndryl’s engineering expertise to modernize complex IT environments while improving resilience and business value.
