Filing Flows › Kyndryl Holdings (KD) › Q3 FY26
Kyndryl Holdings (KD) Q3 FY26 earnings results (third quarter fiscal 2026)
10-Q filed Feb 17, 2026
Kyndryl Holdings (KD) reported revenue of $3.9B for the third quarter fiscal 2026 (Q3 FY26), +3% from a year earlier and +4% from the quarter before. Operating margin was 2.4%, net earnings $57.0M (1.5% of revenue).
Kyndryl Holdings, Q3 FY26: revenue $3.9B (+3% year over year), operating margin 2.4%, net earnings $57.0M, operating cash flow $428M. The chart follows the revenue to costs, profit and cash.
| Q3 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $3.9B | +4% | +3% |
| Operating profit | $91.0M | -7% | -65% |
| Net earnings | $57.0M | -16% | -73% |
| Operating cash flow | $428M | +193% | +65% |
| Free cash flow | $208M | 12× | +38% |
What changed
Revenue was $3.9B in Q3 FY26, up 3% year over year and up 4% from the previous quarter. Principal Markets was the largest line at 37% of revenue. Principal Markets added $0.13B year over year (up 10%), 111% of the total change. Japan declined 2%.
Operating profit was $0.09B, a 2.4% margin (down 4.5 points year over year). Operating profit fell $0.17B even though revenue rose $0.12B versus a year earlier, so costs grew faster than sales. Total costs grew 8% against revenue growth of 3%. Net earnings were $0.06B, down 73% year over year. The effective tax rate was 37.4%.
Operating cash flow was $0.43B (up 65% year over year), 751% of net earnings. Non-cash charges added back $0.20B of depreciation and amortization and $0.02B of share-based compensation. Working capital and other items added $0.15B. Capital expenditures of $0.22B left free cash flow of $0.21B.
Questions
What was Kyndryl Holdings' revenue in the third quarter fiscal 2026?
Kyndryl Holdings (KD) reported revenue of $3.9B for the third quarter fiscal 2026 (Q3 FY26), +3% from a year earlier and +4% from the quarter before.
Was Kyndryl Holdings profitable in the third quarter fiscal 2026?
Operating profit was $91.0M (2.4% of revenue) and net earnings $57.0M.
Source: Kyndryl Holdings 10-Q on SEC EDGAR.