$KD

Kyndryl Holdings, Inc.

CIK:0001867072|SEC Filings

CONSOLIDATED INCOME STATEMENT - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CONSOLIDATED INCOME STATEMENT
Revenues	$ 3,618	$ 3,743
Cost of services	2,842	2,947
Selling, general and administrative expenses	668	646
Workforce rebalancing charges	152	25
Transaction-related costs (benefits)	(38)
Impairment expense	38
Interest expense	34	19
Other expense (income)	(10)	13
Total costs and expenses	3,687	3,651
Income (loss) before income taxes	(69)	92
Provision for income taxes	(14)	36
Net income (loss)	$ (55)	$ 56
EARNINGS (LOSS) PER SHARE
Basic earnings (loss) per share (in dollars per share)	$ (0.25)	$ 0.24
Diluted earnings (loss) per share (in dollars per share)	$ (0.25)	$ 0.23
Weighted-average basic shares outstanding (in shares)	220.6	230.2
Weighted-average diluted shares outstanding (in shares)	220.6	239.1

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss)	$ (55)	$ 56
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property, equipment and capitalized software	183	191
Depreciation of right-of-use assets	68	73
Amortization of transition costs and prepaid software	331	308
Amortization of capitalized contract costs	94	106
Amortization of acquisition-related intangible assets	6	7
Stock-based compensation	21	24
Deferred taxes	(50)	(10)
Net (gain) loss on asset sales and other	6
Change in operating assets and liabilities:
Right-of-use assets and liabilities (excluding depreciation)	(81)	(88)
Workforce rebalancing liabilities	132	3
Current accounts receivables	18	114
Lease and other receivables	(51)	(67)
Accounts payable	(320)	(269)
Taxes	(32)	27
Deferred transition costs and prepaid software (excluding amortization)	(246)	(1,259)
Capitalized contract costs (excluding amortization)	(108)	(122)
Other assets and other liabilities	(228)	781
Net cash provided by operating activities	(310)	(124)
Cash flows from investing activities:
Capital expenditures	(149)	(143)
Proceeds from disposition of property and equipment	58	45
Acquisitions and divestitures, net of cash acquired	31	1
Other investing activities, net	11	22
Net cash used in investing activities	(49)	(74)
Cash flows from financing activities:
Debt repayments	(52)	(36)
Common stock repurchases	(64)	(62)
Common stock repurchases for tax withholdings	(13)	(67)
Other financing activities, net	(23)	(5)
Net cash provided by (used in) financing activities	(152)	(170)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(4)	46
Net change in cash, cash equivalents and restricted cash	(515)	(323)
Cash, cash equivalents and restricted cash at beginning of period	2,626	1,789
Cash, cash equivalents and restricted cash at end of period	2,111	1,466
Supplemental data:
Income taxes paid, net of refunds received	76	67
Interest paid on debt	$ 50	$ 39

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Jun. 30, 2026	Mar. 31, 2026
Current assets:
Cash and cash equivalents	$ 2,104	$ 2,623
Restricted cash	6	3
Accounts receivable (net of allowances for credit losses of $5 at June 30, 2026 and $7 at March 31, 2026)	1,248	1,300
Deferred costs (current portion)	1,146	1,166
Prepaid expenses and other current assets	564	436
Total current assets	5,069	5,528
Property and equipment, net	2,477	2,517
Operating right-of-use assets, net	859	853
Deferred costs (noncurrent portion)	1,822	1,880
Deferred taxes	248	240
Goodwill	784	786
Intangible assets, net	161	165
Pension assets	226	222
Other noncurrent assets	380	360
Total assets	12,026	12,551
Current liabilities:
Accounts payable	1,052	1,346
Value-added tax and income tax liabilities	241	278
Current portion of long-term debt and short-term debt	1,781	1,796
Accrued compensation and benefits	415	463
Deferred income (current portion)	876	888
Operating lease liabilities (current portion)	264	265
Accrued contract costs	339	369
Other accrued expenses and liabilities	1,011	903
Total current liabilities	5,980	6,307
Long-term debt	2,289	2,293
Retirement and nonpension postretirement benefit obligations	489	490
Deferred income (noncurrent portion)	378	390
Operating lease liabilities (noncurrent portion)	596	602
Other noncurrent liabilities	1,125	1,176
Total liabilities	10,859	11,259
Commitments and contingencies
Stockholders' equity
Common stock, par value $0.01 per share, and additional paid-in capital (shares authorized: 1,000.0; shares issued: June 30, 2026 - 247.2, March 31, 2026 - 244.4)	4,722	4,701
Accumulated deficit	(1,924)	(1,869)
Treasury stock, at cost (shares: June 30, 2026 - 27.8, March 31, 2026 - 21.7)	(659)	(582)
Accumulated other comprehensive income (loss)	(1,069)	(1,074)
Total stockholders' equity before non-controlling interests	1,070	1,175
Non-controlling interests	97	117
Total equity	1,167	1,293
Total liabilities and equity	$ 12,026	$ 12,551