Kyndryl reports a 3.2% year-over-year revenue drop for Q1 fiscal 2027, missing market expectations.
Kyndryl Holdings Inc (KD) saw its shares plummet 10% in early trading Wednesday after reporting a 3.2% year-over-year revenue decline for the first quarter of fiscal 2027. The company, which provides enterprise IT infrastructure services, posted results for the period ending June 30, falling short of analyst projections.
Revenue for the quarter totaled $1.23 billion, down from $1.27 billion in the same period last year. The adjusted loss per share widened compared to the prior year, reflecting ongoing challenges in its core business segments. Market consensus had anticipated a smaller decline, with estimates hovering around a 1.5% drop.
The decline marks the third consecutive quarter of year-over-year revenue contraction for Kyndryl, raising concerns about its growth trajectory amid competitive pressures in the IT services sector.