Equity Profile

KD

Kyndryl Holdings, Inc.

Information TechnologyIT Consulting & Other Services$3.0B

May12Thu

Pre-Earnings Brief

UpcomingQ1-2027After Close5:00 PM EDT

Company Snapshot

Kyndryl Holdings, Inc. is an IT consulting and services company that focuses on managing and modernizing IT infrastructure for businesses....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a critical measure of a company's profitability and will indicate how well Kyndryl is managing its costs and generating income.

N/A

Revenue Growth

Revenue growth is essential to assess Kyndryl's ability to attract new clients and expand its services, especially in a competitive IT landscape.

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 IT consulting and services company that focuses on managing and modernizing IT infrastructure for businesses. As a key player in the Information Technology sector, Kyndryl is positioned to benefit from trends in cloud computing and digital transformation, which are increasingly important for companies looking to improve efficiency and innovation.

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, falling short of expectations by over 44%. This disappointing performance led to a significant drop in the stock price the following day.

Management Promises & Guidance

Focus on improving operational efficiency.
Commitment to enhancing customer service and support.
Plans to expand service offerings in cloud and digital transformation.

Expectations

Wall Street Expectations

Market expectations are cautious following Kyndryl's recent earnings misses, with investors looking for signs of recovery in profitability and revenue growth.

Bull Case

If Kyndryl can demonstrate improved operational efficiency and client retention, it may regain investor confidence and drive stock price recovery.

Bear Case

Continued underperformance in earnings and revenue could lead to further declines in stock price, as investors may lose faith in the company's turnaround strategy.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be this quarter, and how does it compare to previous estimates?

Given Kyndryl's recent earnings misses, the EPS figure will be crucial in determining if the company is on the right track.

What is the current client retention rate, and how has it changed compared to previous quarters?

Client retention is a key indicator of Kyndryl's service effectiveness and will impact future revenue growth.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Kyndryl's potential for operational improvements and client retention, which could lead to better-than-expected results this quarter.

Supporting Evidence

Kyndryl has a strong track record of beating EPS estimates 75% of the time, suggesting potential upside.

Options pricing indicates a lower expected move than historical averages, implying that the market may be overly cautious.

Recent investments in cloud services could yield positive results that are not fully reflected in current expectations.

Key Risk

If the client retention rate shows significant improvement, it could lead to a reassessment of Kyndryl's growth prospects.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is critical as Kyndryl seeks to recover from recent earnings disappointments and demonstrate its growth potential.

Bull Confirmed If

An EPS of $0.25 or higher would indicate a positive turnaround and strengthen investor confidence.

Bear Confirmed If

An EPS below $0.18 would confirm ongoing struggles and likely lead to further stock declines.

Pre-Earnings Positioning

Options Market

Implied Move

±3.6%

Historical Avg

±9.6%

Pricing cheap

The options market is pricing a modest move around the earnings report, indicating uncertainty among investors about the upcoming results.

Options are pricing ±3.6% while KD has averaged ±9.6% over the last 8 prints — setup is pricing cheap.

Detail

ATM IV

0.6%

30d HV

54.8%

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

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 but in-line report may lead to muted stock movement as investors weigh the implications of management's commentary.

Miss

If Kyndryl misses expectations again, history suggests a potential drop of around 32.83%, reinforcing negative sentiment.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on operational efficiency improvements.
2Details on new client acquisitions and retention strategies.
3Insights into revenue growth from cloud services.
4Management's outlook on market conditions and competition.
5Any changes to guidance or expectations for the upcoming quarters.

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Company Snapshot

Kyndryl Holdings, Inc. is an IT consulting and services company that focuses on managing and modernizing IT infrastructure for businesses....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a critical measure of a company's profitability and will indicate how well Kyndryl is managing its costs and generating income.

N/A

Revenue Growth

Revenue growth is essential to assess Kyndryl's ability to attract new clients and expand its services, especially in a competitive IT landscape.

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

In the last quarter, Kyndryl reported an EPS of $0.18, falling short of expectations by over 44%. This disappointing performance led to a significant drop in the stock price the following day.

Management Promises & Guidance

Focus on improving operational efficiency.
Commitment to enhancing customer service and support.
Plans to expand service offerings in cloud and digital transformation.

Expectations

Wall Street Expectations

Market expectations are cautious following Kyndryl's recent earnings misses, with investors looking for signs of recovery in profitability and revenue growth.

Bull Case

If Kyndryl can demonstrate improved operational efficiency and client retention, it may regain investor confidence and drive stock price recovery.

Bear Case

Continued underperformance in earnings and revenue could lead to further declines in stock price, as investors may lose faith in the company's turnaround strategy.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be this quarter, and how does it compare to previous estimates?

Given Kyndryl's recent earnings misses, the EPS figure will be crucial in determining if the company is on the right track.

What is the current client retention rate, and how has it changed compared to previous quarters?

Client retention is a key indicator of Kyndryl's service effectiveness and will impact future revenue growth.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Kyndryl's potential for operational improvements and client retention, which could lead to better-than-expected results this quarter.

Supporting Evidence

Kyndryl has a strong track record of beating EPS estimates 75% of the time, suggesting potential upside.

Options pricing indicates a lower expected move than historical averages, implying that the market may be overly cautious.

Recent investments in cloud services could yield positive results that are not fully reflected in current expectations.

Key Risk

If the client retention rate shows significant improvement, it could lead to a reassessment of Kyndryl's growth prospects.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is critical as Kyndryl seeks to recover from recent earnings disappointments and demonstrate its growth potential.

Bull Confirmed If

An EPS of $0.25 or higher would indicate a positive turnaround and strengthen investor confidence.

Bear Confirmed If

An EPS below $0.18 would confirm ongoing struggles and likely lead to further stock declines.

Pre-Earnings Positioning

Options Market

Implied Move

±3.6%

Historical Avg

±9.6%

Pricing cheap

The options market is pricing a modest move around the earnings report, indicating uncertainty among investors about the upcoming results.

Options are pricing ±3.6% while KD has averaged ±9.6% over the last 8 prints — setup is pricing cheap.

Detail

ATM IV

0.6%

30d HV

54.8%

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

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 but in-line report may lead to muted stock movement as investors weigh the implications of management's commentary.

Miss

If Kyndryl misses expectations again, history suggests a potential drop of around 32.83%, reinforcing negative sentiment.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on operational efficiency improvements.
2Details on new client acquisitions and retention strategies.
3Insights into revenue growth from cloud services.
4Management's outlook on market conditions and competition.
5Any changes to guidance or expectations for the upcoming quarters.