Kyndryl's Mixed Q1 Results Weighed Down by Workforce Charges

Kyndryl's latest quarter brought mixed results, as revenue fell short of expectations and losses widened due to $152 million in workforce rebalancing charges. Despite this, new contract signings surged to $3.9 billion.

The IBM spin-off reported $3.62 billion in first-quarter revenue, below forecasts. However, it posted a pretax loss after booking the aforementioned charges, which are part of its plan to cut annual operating costs by $400 million to $500 million by fiscal 2028.

Kyndryl's Principal Markets segment saw a 7% decline in revenue, indicating some customers may be taking longer to greenlight work. Nevertheless, total signings increased from $3.2 billion the previous year, including 10 deals above $50 million.