Kyndryl (NYSE: KD) reported Q2 EPS of ($0.05), $1.19 better than the analyst estimate of ($1.24). Revenue for the quarter came in at $4.1 billion versus the consensus estimate of $4.18 billion.

OUTLOOK:

Kyndryl is raising its fiscal 2024 adjusted pretax income outlook, which it now expects to be at least $140 million, compared to its prior outlook of at least $100 million. The Company is also raising its fiscal 2024 adjusted EBITDA margin outlook, now expecting it to be approximately 14.5%, compared to its prior outlook of approximately 14%.

The Company is raising its fiscal 2024 targets primarily because of the benefits from its three-A initiatives, as discussed above, and noted that it continues to expect its fiscal 2024 adjusted free cash flow will be positive. Kyndryl is narrowing its outlook for constant-currency revenue growth to (6%) to (7%), which represents the stronger end of its prior estimate of (6%) to (8%).

For earnings history and earnings-related data on Kyndryl (KD) click here.