IT infrastructure specialist Kyndryl Holdings (KD 1.15%) is heading into the weekend on a high note. The company's share price rose by more than 10% over the course of the week, according to data compiled by S&P Global Market Intelligence, on news of encouraging quarterly results.
Headline figures went in opposite directions
For its third quarter of fiscal 2025, Kyndryl posted revenue of $3.74 billion, which was down from the nearly $3.94 billion it earned in the same period of fiscal 2024. It also missed the consensus analyst estimate of $3.83 billion.
The bottom-line dynamic was notably more positive. The company, which has attracted notice with its utilization of artificial intelligence (AI) in its offerings, flipped into the black with non-GAAP (adjusted) net income coming in at $124 million against the year-ago loss of $11 million. The former shakes out to $0.51 per share, well higher than the average $0.43 pundit projection.
Kyndryl attributed that outperformance to factors such as "strong signings growth," pointing in particular to the double-digit improvement in revenue from its Kyndryl Consult unit.
NYSE: KD
Key Data Points
Earnings and adjusted cash flow guidance raised
This led Kyndryl to raise certain guidance items for the entirety of fiscal 2025. It now feels it will book a pre-tax income of at least $475 million. If achieved, this would mean year-over-year growth of $310 million at a minimum. It also upped its forecast for adjusted cash flow; this is now anticipated to be roughly $350 million. As for revenue, on a constant-currency basis, it should rise 2% from the fiscal 2024 level.
