Kyndryl (KD) Q4 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, May 6, 2026 astatine 12:17 PM CDT 37 min read

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DATE

Wednesday, May 6, 2026 astatine 8:30 a.m. ET

CALL PARTICIPANTS

• Chairman and Chief Executive Officer — Martin J. Schroeter

• Chief Financial Officer — Harsh Chugh

• Vice President, Investor Relations — Lori Chaitman

Full Conference Call Transcript

Martin Schroeter: Thank you, Lori, and acknowledgment to each of you for joining us. In our fiscal twelvemonth 2026, we delivered adjusted pretax income maturation and borderline enlargement and generated implicit $400 cardinal successful escaped currency flow. This show comes against the backdrop of an situation that has continued to widen income cycles and weighed connected our gross and signings performance. Customers are telling america that they are anxious to clasp innovative solutions and modernization strategies, yet they are progressively thoughtful and deliberate successful their IT decision-making driven by the dynamic of sovereignty, AI and cyber preparedness, aiming to equilibrium translation with operational stableness successful today's analyzable environment.

Considering these dynamics, we proceed to put successful Kyndryl Consult, our confederation partnerships and our agentic AI capabilities, each portion supporting and modernizing our customers' astir analyzable mission-critical IT environments. Our strategical absorption remains unchanged. We're focused connected increasing our revenues and net and generating currency to reinvest successful our business. The palmy execution and continuation of our precocious transportation initiative, the expanding usage of AI crossed our ain operations and the caller workforce rebalancing actions gives america assurance that we're progressing toward our multiyear objectives. Both Harsh and I volition sermon this successful much detail. We volition present sustainable profitable maturation by expanding high-value consult engagements, deepening capabilities with our confederation partners and delivering innovative AI-led modernization services.

As much post-spin signings person into gross successful fiscal '27 and '28, these maturation investments paired with our ain usage of innovation to thrust productivity presumption america to execute higher profitability going forward. On today's call, I'll item the underlying maturation drivers that are strengthening our operations and the targeted actions we're taking successful fiscal '27 to beforehand america towards our fiscal '28 goals. Let maine commencement with Kyndryl Consult. In fiscal '26, Kyndryl Consult again delivered double-digit gross growth, our 3rd consecutive twelvemonth of beardown performance. We've invested heavy successful Kyndryl Consult, including processing and hiring forward-deployed engineers and quality systems architects and our AI innovation labs, wherever we co-create Agentic solutions astatine standard with customers.