Filing Flows › Kyndryl Holdings (KD) › Q1 FY26
Kyndryl Holdings (KD) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Aug 5, 2025
Kyndryl Holdings (KD) reported revenue of $3.7B for the first quarter fiscal 2026 (Q1 FY26), +0.1% from a year earlier and -2% from the quarter before. Operating margin was 2.5%, net earnings $56.0M (1.5% of revenue).
Kyndryl Holdings, Q1 FY26: revenue $3.7B (+0.1% year over year), operating margin 2.5%, net earnings $56.0M, operating cash flow −$124M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $3.7B | -2% | +0.1% |
| Operating profit | $92.0M | -23% | +44% |
| Net earnings | $56.0M | -19% | +409% |
| Operating cash flow | −$124M | -121% | — |
What changed
Revenue was $3.7B in Q1 FY26, roughly flat year over year and down 2% from the previous quarter. Principal Markets was the largest line at 36% of revenue. Principal Markets added $0.04B year over year (up 3%), 1025% of the total change. United States declined 8%.
Operating profit was $0.09B, a 2.5% margin (up 0.7 points year over year). Of the extra revenue versus a year earlier, 700% reached operating profit, above the 2% margin then. Total costs fell 1% while revenue was flat. Net earnings were $0.06B, up 409% year over year. The effective tax rate was 39.1%.
Operating cash flow was −$0.12B. Non-cash charges added back $0.20B of depreciation and amortization and $0.02B of share-based compensation. Working capital and other items used $0.40B. Capital expenditures of $0.14B exceeded it, leaving free cash flow of −$0.27B.
Questions
What was Kyndryl Holdings' revenue in the first quarter fiscal 2026?
Kyndryl Holdings (KD) reported revenue of $3.7B for the first quarter fiscal 2026 (Q1 FY26), +0.1% from a year earlier and -2% from the quarter before.
Was Kyndryl Holdings profitable in the first quarter fiscal 2026?
Operating profit was $92.0M (2.5% of revenue) and net earnings $56.0M.
Source: Kyndryl Holdings 10-Q on SEC EDGAR.