Kyndryl Shares Plummet After Disappointing Revenue Report
Kyndryl Holdings Inc.'s shares declined by 5.38% after the company reported a larger-than-expected revenue decline in its fiscal first quarter.
The technology services giant ended the three months through June 30 with $3.61 billion in revenue, which is 3% less than a year earlier and 1.2% below the consensus estimate.
Kyndryl's broadened focus on high-stakes technology projects, such as building artificial intelligence applications, helped cushion declines in certain areas. The company's Kyndryl Consult unit reported a 10% growth in sales during the first quarter thanks to 10 deals worth over $50 million.
Kyndryl has strengthened its partnerships with cloud providers and saw hyperscaler-related revenue surge by 35% year-over-year to $530 million in the first quarter. The company's expanded partnership with Amazon Web Services Inc.'s (AWS) will equip Kyndryl employees with new AI and software modernization skills.