Latest news with #KyndrylBridge
Time of India
6 days ago
- Business
- Time of India
AI infrastructure in Action: Think Digital Act Hybrid
Do you know that Indian factories now pour around ₹5.7 trillion every year—about US $69 billion—just into keeping their machines running? World-Bank data put India's 2023 manufacturing output at US $461 billion, and maintenance-economics studies show that routine upkeep typically consumes about 15 percent of production cost even in well-run plants. The drain deepens whenever equipment fails without warning. A nationwide reliability survey found that 88 percent of industrial sites suffer at least one unplanned outage every month, and every lost hour costs the average plant roughly ₹7 million in scrap, overtime and idle labour. Pharmaceutical facilities feel the pain most sharply: recent research tracking disruption across life-science manufacturers shows downtime incidents lasting eight hours or more and losses that can top £5 million—about ₹52 crore—per hour once sterility has been breached. The good news is that the numbers flip when factories move from calendar-based greasing to data-driven care. A cross-industry study of predictive-maintenance programmes reports about a 25 percent cut in maintenance spend and a 10–20 percent boost in equipment availability after plants fitted vibration, temperature or energy sensors and began using machine-learning models to flag anomalies early . Multiply those averages across India's manufacturing ledger and more than a trillion rupees a year could stay on the shop-floor instead of vanishing into unplanned downtime. For decision makers in manufacturing industry, the route to those gains is straightforward. Begin by mapping which utilities / equipment / asset have the greatest impact on production integrity and uptime, then put continuous, always-on guardrails around that short list first. Feed the resulting data into a secure, vendor-neutral platform so operations, quality and IT share one source of truth; let anomaly alerts open work orders automatically; wrap the flow in zero-trust policies. Field evidence shows every rupee invested in this disciplined approach returns three to five rupees in avoided downtime while simultaneously hardening the plant's cyber posture. Several Indian manufacturers have already moved from pilot to production with exactly this playbook—most notably Dr. Reddy's Laboratories , which chose Kyndryl as its partner to make the vision real. This is the logic behind the partnership announced in April 2025 between Kyndryl and Dr. Reddy's Laboratories. Under the agreement, Kyndryl is deploying its open integration platform, Kyndryl Bridge, to monitor every data-centre workload and every production asset across the pharma major's global network. The goal is a Zero-Touch operations model that uses AI to predict failures, trigger auto-remediation and cut manual interventions by about 60 percent, all from a single analytics dashboard that also simplifies compliance reporting. Where traditional industrial-automation companies focus on selling the drives, controllers and sensors themselves, Kyndryl lives in the connective tissue: it ingests raw analogue loops alongside modern digital tags, normalises them into secure MQTT or OPC UA streams, applies zero-trust policies so a IoT device can talk to the cloud without inviting ransomware, and keeps the entire hybrid stack patched and audited 24 × 7. In short, plants that wait for machines to fail pay twice—once for emergency repairs and again for lost production. Plants that 'sense analogue, think digital and act hybrid,' with services like Kyndryl's stitching old and new together, turn maintenance from a cost centre into a fountain of uptime, yield and margin. In a market where a single afternoon of sterile downtime can erase a quarter's profit, adopting Industry 4.0/5.0 maintenance is no longer an experiment; it is a balance-sheet imperative. The author is Kaustubh Ramchandra Purohit, Customer Technology Advisor, Kyndryl IndiaNote: This article is a part of ETCIO'S Brand Connect Initiative.
Yahoo
12-06-2025
- Business
- Yahoo
KD Q1 Earnings Call: Kyndryl Highlights Consulting Momentum and Expanding Margins
IT infrastructure services provider Kyndryl (NYSE:KD) reported Q1 CY2025 results exceeding the market's revenue expectations , but sales fell by 1.3% year on year to $3.8 billion. Guidance for next quarter's revenue was better than expected at $3.78 billion at the midpoint, 0.6% above analysts' estimates. Its non-GAAP profit of $0.52 per share was 2.7% above analysts' consensus estimates. Is now the time to buy KD? Find out in our full research report (it's free). Revenue: $3.8 billion vs analyst estimates of $3.77 billion (1.3% year-on-year decline, 0.8% beat) Adjusted EPS: $0.52 vs analyst estimates of $0.51 (2.7% beat) Adjusted EBITDA: $698 million vs analyst estimates of $709.7 million (18.4% margin, 1.7% miss) Revenue Guidance for Q2 CY2025 is $3.78 billion at the midpoint, roughly in line with what analysts were expecting Operating Margin: 4.2%, up from 1% in the same quarter last year Market Capitalization: $9.26 billion Kyndryl's first quarter results were propelled by continued growth in its consulting segment and the successful execution of its three strategic initiatives—accounts, alliances, and advanced delivery. CEO Martin Schroeter emphasized that signings increased 48% year over year, driven by demand for cloud migration, hybrid IT environments, and cybersecurity services. Kyndryl Consult, in particular, delivered above-market growth, with revenue rising more than 25% during the year. Schroeter highlighted the company's ability to secure large, multi-year contracts across multiple sectors, including a $1 billion agreement with a financial services client and expanded relationships in healthcare and retail. These wins reflect Kyndryl's expanded capabilities and reputation for managing mission-critical technology. Looking ahead, Kyndryl's management expects to sustain positive revenue momentum through a combination of margin expansion and increased demand for digital transformation services. CFO David Wyshner noted that the company anticipates double-digit revenue growth in Kyndryl Consult and a 50% increase in hyperscaler-related revenue for the year, reflecting growing partnerships with major cloud providers. Schroeter stated, 'Our business providing mission critical services under multi-year contracts means that we are significantly insulated from, although not immune to, macro factors.' The company also aims to drive further operational efficiencies and invest in consulting capabilities, Kyndryl Bridge (its AI-powered platform), and strategic alliances to support long-term profitability and cash flow targets set for the next several years. Management attributed the quarter's performance to significant consult signings, the expansion of cloud partnerships, and the impact of efficiency initiatives that improved margins. Consulting segment outperformance: Kyndryl Consult revenue grew over 25% for the year, with signings up 50%, fueled by demand for digital transformation projects such as cloud migration and application modernization. Management highlighted that consulting contracts typically convert to revenue faster than managed services and are accretive to company margins. Large deal momentum: The company secured multiple large contracts, including a $1 billion, six-year deal with a financial services firm and expanded agreements in healthcare and retail. Management sees these deals as expanding both the scope of services and the proportion of revenue from higher-margin offerings. Growth in hyperscaler alliances: Revenue from partnerships with major cloud providers more than doubled year over year, surpassing $1.2 billion. Management expects this trend to continue as enterprises modernize IT infrastructure and leverage AI capabilities. Margin improvement from strategic initiatives: The accounts, alliances, and advanced delivery ('3A') initiatives have become core to Kyndryl's operating model, delivering annualized savings and contributing to a 3.2 percentage point year-over-year increase in operating margin. Management noted that over 75% of targeted account savings have already been realized. Book-to-bill ratio and backlog: With a book-to-bill ratio above 1, Kyndryl is converting signings into a growing backlog, supporting future revenue visibility. Management reported 70-75% of annual revenue is already under contract at the start of the year, indicating strong predictability in the business. Management expects future performance to be shaped by consulting growth, expanded cloud partnerships, and ongoing operational efficiency gains. Consulting and advisory growth: The company forecasts continued double-digit growth in consulting revenue, underpinned by demand for cloud optimization, cybersecurity, and AI governance services. Management is increasing investment in consulting talent and capabilities to capture this demand. Expanding hyperscaler partnerships: Kyndryl anticipates a 50% increase in hyperscaler (major cloud provider) related revenue, driven by customer migration to hybrid and public cloud environments. These partnerships are expected to enhance both revenue growth and margin profile. Operational leverage and margin expansion: The shift toward post-spin, higher-margin contracts and the maturation of its 3A initiatives are projected to drive further operating margin improvement. Management cautioned that legacy contract roll-offs and ongoing investment in growth areas may moderate the pace of revenue acceleration in the near term. In the coming quarters, the StockStory team will be watching (1) the pace of consulting and hyperscaler-related revenue growth, (2) progress on expanding operating margins through efficiency initiatives, and (3) the scale and profitability of new large multi-year contracts. The evolution of Kyndryl Bridge and its impact on customer adoption will also be a key marker of success. Kyndryl currently trades at a forward P/E ratio of 19.4×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. 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Yahoo
14-05-2025
- Business
- Yahoo
Kyndryl CFO: The strategy powering growth amid uncertainty
Good morning. Kyndryl's story is one of steady execution, cultural reinvention, and a return to growth. When Kyndryl was spun off by IBM in late 2021, the company had to establish itself as a dominant provider of IT infrastructure services amid naysayers and doubters. Its biggest challenge: transforming a legacy operation with declining revenues and low margins into a profitable, nimble, and growing global leader. But this wasn't Kyndryl CFO David Wyshner's first time at bat. In the past 20 years, Kyndryl's spinoff from IBM is the sixth one he's been involved in, including leading Wyndham Worldwide's separation into a privately acquired business and two public companies as CFO. Over the years, I've spoken with Wyshner about Kyndryl's progress, such as landing on the Fortune 500 for the first time in 2023. We recently talked about the company's consistent growth. Kyndryl, led by CEO Martin Schroeter, operates essential IT systems for financial institutions, airlines, retailers, and industrial companies. Even amid macroeconomic uncertainty, demand for these services remains strong, Wyshner said. He affirms that Kyndryl's focus on modernization, cloud transformation, cybersecurity, and AI-enabled operations has insulated its growth from broader economic headwinds. 'What we do is mission critical,' Wyshner told me. 'Our services are not discretionary—they're essential for our customers' operations, especially in times of uncertainty.' For its fiscal year that ended March 31, Kyndryl reported record signings of $18.2 billion—a 46% year-over-year increase—and returned to constant-currency revenue growth for the first time since the spinoff. Adjusted EBITDA rose 6% to $2.5 billion, and adjusted pretax income nearly tripled to $482 million. The company also delivered positive net income, a sharp turnaround from losses in prior years. Net income swung from a net loss of $340 million last year to a profit of $252 million. Kyndryl's 'Three-As' strategy—alliances, advanced delivery, and accounts—is paying off, Wyshner said. For example, revenue from alliances with cloud hyperscalers like Microsoft Azure, AWS, and Google Cloud reached $1.2 billion last year. The launch of its AI-powered open integration platform, Kyndryl Bridge, freed up more than 13,000 delivery professionals and generated $775 million in annualized savings, he said. The company also has addressed low-margin contracts inherited from IBM, replacing them with higher-margin, strategic deals. Last year, this effort delivered $900 million in annualized benefits. But making a spinoff successful is no small feat. Few corporate spinoffs deliver value, according to research. I asked Wyshner if he could point to at least three important elements that can help a spinoff beat the odds. 'Number one is getting the right team and the right culture in place,' he told me. 'We've really benefited from having a senior team that works well together and is focused on execution." Number two is setting the right expectations, both internally and externally. "We were spun out as a turnaround, and our business model operates under long-term contracts—so change takes time," he said. And the third element comes back to execution: "Making progress on the things that really move the needle," Wyshner said. When there's a lot of change going on, it's easy to get distracted by aspects that may not have a large impact and take attention away from things that really do matter, he said. When launching, Kyndryl was in the spotlight to deliver a turnaround story. Being just below break-even in its first year meant that 'we had a lot of work to do,' Wyshner said. Sheryl *****CFO Daily survey: By sharing your perspective in a short survey on tariffs, your experience can help others turn risk into resilience. Please take a few minutes to complete the survey and join your peers in shaping how the Office of the CFO navigates this era of trade uncertainty. Share your voice—you can complete our survey here. Thank you! This story was originally featured on
Yahoo
13-05-2025
- Business
- Yahoo
Kyndryl (NYSE:KD) Posts Better-Than-Expected Sales In Q1, Quarterly Revenue Guidance Slightly Exceeds Expectations
IT infrastructure services provider Kyndryl (NYSE:KD) reported revenue ahead of Wall Street's expectations in Q1 CY2025, but sales fell by 1.3% year on year to $3.8 billion. Guidance for next quarter's revenue was better than expected at $3.78 billion at the midpoint, 0.6% above analysts' estimates. Its non-GAAP profit of $0.52 per share was 2.7% above analysts' consensus estimates. Is now the time to buy Kyndryl? Find out in our full research report. Revenue: $3.8 billion vs analyst estimates of $3.77 billion (1.3% year-on-year decline, 0.8% beat) Adjusted EPS: $0.52 vs analyst estimates of $0.51 (2.7% beat) Adjusted EBITDA: $698 million vs analyst estimates of $709.7 million (18.4% margin, 1.7% miss) Revenue Guidance for Q2 CY2025 is $3.78 billion at the midpoint, roughly in line with what analysts were expecting Operating Margin: 4.9%, up from 1% in the same quarter last year Free Cash Flow was $341 million, up from -$31.33 million in the same quarter last year Market Capitalization: $7.74 billion "Fiscal 2025 was another year of strong execution on our strategy. In addition to returning to constant-currency revenue growth in the fourth quarter, we strengthened our leadership in innovative mission-critical technology services. We expanded our capabilities in cloud, modernization, applications, AI and security, and we further differentiated our services with Kyndryl Bridge," said Kyndryl Chairman and Chief Executive Officer Martin Schroeter. Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE:KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers. Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $15.06 billion in revenue over the past 12 months, Kyndryl is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it's challenging to maintain high growth rates when you've already captured a large portion of the addressable market. For Kyndryl to boost its sales, it likely needs to adjust its prices, launch new offerings, or lean into foreign markets. As you can see below, Kyndryl's demand was weak over the last four years. Its sales fell by 6% annually, a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a stretched historical view may miss recent innovations or disruptive industry trends. Kyndryl's annualized revenue declines of 6% over the last two years align with its four-year trend, suggesting its demand has consistently shrunk. This quarter, Kyndryl's revenue fell by 1.3% year on year to $3.8 billion but beat Wall Street's estimates by 0.8%. Company management is currently guiding for a 1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection indicates its newer products and services will catalyze better top-line performance, it is still below average for the sector. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Although Kyndryl was profitable this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 3.6% over the last five years. Unprofitable business services companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. On the plus side, Kyndryl's operating margin rose by 11.2 percentage points over the last five years. Still, it will take much more for the company to show consistent profitability. This quarter, Kyndryl generated an operating profit margin of 4.9%, up 3.9 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses. We track the change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Kyndryl's full-year EPS flipped from negative to positive over the last three years. This is encouraging and shows it's at a critical moment in its life. In Q1, Kyndryl reported EPS at $0.52, up from negative $0.01 in the same quarter last year. This print beat analysts' estimates by 2.7%. Over the next 12 months, Wall Street expects Kyndryl's full-year EPS of $1.18 to grow 75.6%. It was good to see Kyndryl beat analysts' revenue and EPS expectations. On the other hand, its EPS missed. Overall, this print was decent. The stock remained flat at $33.01 immediately following the results. Is Kyndryl an attractive investment opportunity right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
09-05-2025
- Business
- Yahoo
Kyndryl Announces Operational Leadership Rotation
NEW YORK, May 9, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, announced today a leadership rotation in some Delivery, Practice and Country roles. Xerxes Cooper will become Global Leader of Kyndryl Delivery, responsible for leading Kyndryl's delivery organization that provides mission-critical enterprise technology services to thousands of customers in more than 60 countries. Previously, Cooper was President of Kyndryl Strategic Markets where he grew signings, increased new business wins, scaled Kyndryl Consult and improved profitability. Petra Goude has been appointed President of Kyndryl Strategic Markets overseeing select countries across Europe, Asia-Pacific, the Middle East and Latin America. Previously, Goude led the Core Enterprise and zCloud practice, where she drove digital transformation for customers by modernizing their mission-critical core systems with the breadth and depth of Kyndryl's capabilities. Jamie Rutledge has been named President of Kyndryl U.S. He was previously the Global Leader of Kyndryl Delivery, where he was instrumental to the development of Kyndryl Bridge, the Company's AI-enabled operating platform. As part of the Company's 3A's strategy, Rutledge successfully led the Advanced Delivery initiative, substantially growing the adoption of Kyndryl Bridge and its use of GenAI and Agentic AI, delivering new value for customers. Hassan Zamat has been appointed Global Practice Leader for Core Enterprise and zCloud, which provides world-class services for customers as they design, modernize and manage their hybrid IT environments. In his previous role, he led Kyndryl's Accounts initiative as part of the Company's 3A's strategy, which has had a significant positive impact on Kyndryl's transformation. "These exceptional leaders have been instrumental in executing our 3A's strategy – delivering success for our customers and profitable growth for Kyndryl," said Elly Keinan, Group President, Kyndryl. "Each has been essential to implementing our key growth initiatives, such as collaborating with our Alliance partners, modernizing customers' technology environments with GenAI and Agentic AI, and cultivating our culture as an employer of choice." About KyndrylKyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit Kyndryl Investor Contact:investors@ Kyndryl Media Contact:press@ View original content to download multimedia: SOURCE Kyndryl Sign in to access your portfolio
