Kyndryl Holdings Revenue Rises 3% to $3.86B in Q3 FY2025

Kyndryl Holdings reported revenue of $3.86 billion for the three months ending December 31, 2025, up 3.1% from $3.74 billion in the same period a year earlier. For the nine months ending December 31, revenue reached $11.32 billion, a modest increase of 0.6% from $11.26 billion in the prior-year period. Read more earnings reports.

Diluted earnings per share came in at $0.25 for the quarter, down from $0.89 a year earlier. For the nine-month period, diluted EPS held steady at $0.77, matching the prior year despite a lower weighted average share count.

Cost of revenue rose to $3.02 billion in the quarter from $2.98 billion a year earlier, while selling, general and administrative expenses climbed to $672 million from $647 million. For the nine-month period, cost of revenue declined to $8.88 billion from $8.94 billion, though SG&A expenses increased to $1.98 billion from $1.95 billion.

The company generated $450 million in cash from operations for the nine months ending December 31, 2025, up 25% from $361 million in the prior-year period. Cash used in investing activities totaled $436 million, more than double the $199 million deployed a year earlier. Cash used in financing activities rose to $448 million from $172 million.

Cash and restricted cash stood at $1.35 billion as of December 31, 2025, down from $1.51 billion a year earlier and $1.79 billion at the end of the prior fiscal year. Total assets increased to $11.28 billion from $10.45 billion at March 31, 2025.

Total liabilities rose to $9.97 billion as of December 31, 2025, from $9.12 billion at the end of the prior fiscal year. Long-term debt remained unchanged at $2.90 billion. Current liabilities climbed to $5.04 billion from $4.30 billion.

Stockholders' equity declined slightly to $1.19 billion from $1.22 billion at March 31, 2025. The company's accumulated deficit narrowed to $1.89 billion from $2.07 billion. Common shares outstanding increased to 225.4 million from 238.2 million issued shares reported at fiscal year-end.

Interest expense declined to $21 million in the quarter from $24 million a year earlier. For the nine-month period, interest expense dropped to $60 million from $77 million. Income tax expense fell to $34 million in the quarter from $43 million and to $100 million for the nine months from $134 million.