Equity Profile

KD

Kyndryl Holdings, Inc.

Information TechnologyIT Consulting & Other Services$2.7B

May12Thu

Pre-Earnings Brief

UpcomingQ1-2027After Close5:00 PM EDT

Company Snapshot

Kyndryl Holdings, Inc. is an information technology services company that focuses on IT consulting and other services....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and performance, which investors closely monitor.

N/A

Revenue Growth

Revenue growth reflects the company's ability to attract and retain clients in a competitive market.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

KD Q1-2027 Earnings Preview

Context

Company Snapshot

Kyndryl Holdings, Inc. is an information technology services company that focuses on IT consulting and other services. With a market cap of $3 billion, Kyndryl plays a significant role in helping organizations manage their IT infrastructure, which is increasingly important as businesses adopt cloud solutions and digital transformation strategies.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

63%

Avg EPS Surprise

+57.64%

Avg Stock Reaction

-8.05%

Last Quarter Recap

In the last quarter, Kyndryl reported an EPS of $0.18, which was significantly below the expected $0.32, resulting in a 10.75% drop in stock price the following day. This marked a continuation of disappointing earnings performance, raising concerns among investors.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall expectations for Kyndryl's upcoming earnings report are cautious, given the company's recent history of missing earnings estimates. Investors will be looking for signs of improvement in profitability and revenue growth.

Bull Case

The optimistic view hinges on Kyndryl delivering better-than-expected EPS and showing signs of revenue growth, which could restore investor confidence and lead to a positive stock reaction.

Bear Case

Conversely, if Kyndryl misses earnings expectations again, it could lead to further declines in stock price, as investors may lose faith in the company's ability to turn around its performance.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for this quarter, and how does it compare to analyst expectations?

Given the company's recent struggles with earnings, the EPS figure will be crucial in determining market sentiment and stock movement.

What are the trends in client retention and revenue growth?

Understanding client retention and revenue growth trends will provide insight into Kyndryl's operational health and future prospects.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Kyndryl's potential for recovery as it has historically shown a 75% EPS beat rate, indicating that the company can exceed expectations despite recent struggles.

Supporting Evidence

Options are pricing a 3.6% move, while the stock has averaged a 9.6% move historically, suggesting a potential for a larger reaction.

The company's recent EPS surprises show that it can outperform expectations, as seen in the previous quarters.

The historical setup pattern indicates a tendency for the stock to hold its direction after earnings, which may not be fully accounted for in current sentiment.

Key Risk

If Kyndryl reports an EPS above $0.25, it could significantly shift market sentiment and challenge the current cautious consensus.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is critical as Kyndryl seeks to recover from previous earnings misses and demonstrate a path to profitability.

Bull Confirmed If

An EPS of $0.25 or higher alongside positive revenue growth would confirm the bull case.

Bear Confirmed If

An EPS below $0.18 would reinforce the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±3.6%

Historical Avg

±9.6%

Pricing cheap

The options market is pricing in a modest move of about 3.6% following the earnings report, suggesting that traders are uncertain about the outcome.

Options are pricing a smaller move than the stock has historically averaged, indicating a potentially undervalued setup.

Detail

ATM IV

0.6%

30d HV

54.8%

Calls (8K)P/C Ratio: 0.17Puts (13K)

Edge

Historical Setup Match

Cross-company pattern from 28 similar setups.

Prior-quarter miss + options pricing cheap setup in Information Technology

n=28

Fade rate: 9 of 28 (32%)

This setup has occurred 28 times across Information Technology in the last 2 years. 19 of 28 (68%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 8.2%, with a raw directional average of +4.0% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Kyndryl beats expectations, history suggests a potential stock increase of around 0.22%, confirming a positive turnaround narrative.

In-Line / Cautious

A cautious in-line report may lead to muted stock movement, as investors weigh the potential for future growth against current performance.

Miss

If the company misses expectations again, history suggests a significant decline of around 32.83%, which could further erode investor confidence.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on client retention rates and how they compare to previous quarters.
2Details on revenue growth and any new contracts or partnerships.
3Management's outlook on future earnings and operational improvements.
4Insights into cost management strategies and their impact on profitability.
5Responses to analyst questions regarding competitive positioning in the IT consulting space.

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Company Snapshot

Kyndryl Holdings, Inc. is an information technology services company that focuses on IT consulting and other services....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and performance, which investors closely monitor.

N/A

Revenue Growth

Revenue growth reflects the company's ability to attract and retain clients in a competitive market.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

KD Q1-2027 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

63%

Avg EPS Surprise

+57.64%

Avg Stock Reaction

-8.05%

Last Quarter Recap

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

The optimistic view hinges on Kyndryl delivering better-than-expected EPS and showing signs of revenue growth, which could restore investor confidence and lead to a positive stock reaction.

Bear Case

Conversely, if Kyndryl misses earnings expectations again, it could lead to further declines in stock price, as investors may lose faith in the company's ability to turn around its performance.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for this quarter, and how does it compare to analyst expectations?

Given the company's recent struggles with earnings, the EPS figure will be crucial in determining market sentiment and stock movement.

What are the trends in client retention and revenue growth?

Understanding client retention and revenue growth trends will provide insight into Kyndryl's operational health and future prospects.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Kyndryl's potential for recovery as it has historically shown a 75% EPS beat rate, indicating that the company can exceed expectations despite recent struggles.

Supporting Evidence

Options are pricing a 3.6% move, while the stock has averaged a 9.6% move historically, suggesting a potential for a larger reaction.

The company's recent EPS surprises show that it can outperform expectations, as seen in the previous quarters.

The historical setup pattern indicates a tendency for the stock to hold its direction after earnings, which may not be fully accounted for in current sentiment.

Key Risk

If Kyndryl reports an EPS above $0.25, it could significantly shift market sentiment and challenge the current cautious consensus.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is critical as Kyndryl seeks to recover from previous earnings misses and demonstrate a path to profitability.

Bull Confirmed If

An EPS of $0.25 or higher alongside positive revenue growth would confirm the bull case.

Bear Confirmed If

An EPS below $0.18 would reinforce the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±3.6%

Historical Avg

±9.6%

Pricing cheap

The options market is pricing in a modest move of about 3.6% following the earnings report, suggesting that traders are uncertain about the outcome.

Options are pricing a smaller move than the stock has historically averaged, indicating a potentially undervalued setup.

Detail

ATM IV

0.6%

30d HV

54.8%

Calls (8K)P/C Ratio: 0.17Puts (13K)

Edge

Historical Setup Match

Cross-company pattern from 28 similar setups.

Prior-quarter miss + options pricing cheap setup in Information Technology

n=28

Fade rate: 9 of 28 (32%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Kyndryl beats expectations, history suggests a potential stock increase of around 0.22%, confirming a positive turnaround narrative.

In-Line / Cautious

A cautious in-line report may lead to muted stock movement, as investors weigh the potential for future growth against current performance.

Miss

If the company misses expectations again, history suggests a significant decline of around 32.83%, which could further erode investor confidence.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on client retention rates and how they compare to previous quarters.
2Details on revenue growth and any new contracts or partnerships.
3Management's outlook on future earnings and operational improvements.
4Insights into cost management strategies and their impact on profitability.
5Responses to analyst questions regarding competitive positioning in the IT consulting space.