KD Kyndryl Holdings, Inc.

Overview and Growth

Kyndryl Holdings, Inc. generated $15.09B of revenue in fiscal 2026. At $15.09B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 0.2% above fiscal 2025 revenue of $15.06B, marking a year-over-year increase. Diluted earnings per share were $0.85, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS decreased by 19.0% from $1.05 in fiscal 2025, showing how the earnings change reached shareholders on a per-share basis. Diluted shares averaged 233.80M; this is the reported share base over which the company’s diluted per-share earnings were spread. Total assets stood at $12.55B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Asset turnover was 1.2x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $3.29B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 21.8%, so that share of each revenue unit remained after the cost of revenue reported for the period. Before income taxes, the company reported $414.00M of earnings, providing a bridge between the operating result and final net income. Measured against revenue, pretax income equaled 2.7%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $215.00M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 51.9%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

Total assets were $12.55B, supported by $11.26B of liabilities and $1.29B of shareholder equity. The near-term balance sheet paired $5.53B of current assets with $6.31B of current liabilities at the reporting date. Current assets covered only 0.88x of current liabilities, so current liabilities exceeded current assets at period end. Cash and equivalents totaled $2.62B, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 41.6%, excluding receivables and other current assets. The company carried $5.70B of total debt at period end, which frames its leverage and debt-service burden. Debt equaled 4.41x of book equity, describing the relative scale of borrowing and shareholder capital. Debt represented 45.4% of total assets, placing borrowing in the context of the company’s full resource base. Equity equaled 10.3% of assets, showing the shareholder-capital layer within the company’s balance sheet. The liabilities-to-assets relationship was 89.7%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 20.9% of total assets, showing the liquid cash component within the company’s broader resource base. Total assets were 20.1% higher than fiscal 2025 assets of $10.45B, measuring the company’s own balance-sheet change. Reported equity changed 2.9% from $1.33B in fiscal 2025, placing the current capital base lower year over year. Compared with $1.79B in fiscal 2025, the current cash balance moved 46.9% and finished higher.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $948.00M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. The cash-flow statement records $608.00M of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 64.1%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $340.00M, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 2.3% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 2.7% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Mar 31, 2026. Analysis generated Oct 21, 2026.