Kyndryl (KD) 53rd Annual JPMorgan Global Technology, Media and Communications Conference summary

Strategic progress and business model evolution

• Achieved positive revenue growth last quarter and guided for full-year growth, marking a key turning point after three and a half years as an independent entity.

• Focused on three pillars: building alliances with major cloud providers, advancing delivery quality and automation, and restructuring unsustainable legacy contracts.

• Improved profitability and cash flow, enabling both reinvestment and capital returns, including a share repurchase program initiated in November.

• Medium-term targets include tripling cash flow and doubling profits, with mid-single-digit revenue growth as the benchmark.

Revenue growth drivers and market positioning

• Growth is driven by strong signings, with a book-to-bill ratio above one and broad-based performance across geographies, verticals, and service lines.

• Large deals in regulated industries and cloud migrations are expanding scope and deepening customer relationships.

• Partnerships with hyperscalers and SAP enable meeting customers where they are and supporting hybrid and multi-cloud strategies.

• Over 40,000 credentialed cloud experts support rapid scaling of cloud-related services.

Business resilience and consultative differentiation

• Business is insulated from economic cycles due to mission-critical, non-discretionary services and long-term contracts.

• Kyndryl Consult has grown from 10% to over 20% of revenue, expected to reach 25% and grow double digits, becoming a $3 billion business.

• Differentiation comes from deep operational insights via Kyndryl Bridge, enabling actionable recommendations and regulatory agility.

• Managed services are nearing steady state and expected to return to growth by fiscal 2027-2028.