Kyndryl (KD) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

SEC matter and disclosure

• Voluntary SEC disclosure request is ongoing, with full cooperation and no financial restatements involved.

• Material weaknesses identified relate to disclosure processes, with a remediation plan underway.

Business transformation and growth drivers

• Shift from IBM-centric to a broader ecosystem, including hyperscaler and Broadcom partnerships, now representing a $2 billion run-rate business.

• New signings post-spin are increasing, expected to reach 90%+ by 2028, with disciplined deal margins in the mid-20s GP and high single-digit PTI.

• Gross profit bookings outpace billings ($4B booked vs $3.3B billed in the last 12 months), supporting confidence in long-term targets.

• Modernization, private cloud, security, and agentic AI are key areas of customer engagement and growth.

Industry trends and customer needs

• Data sovereignty, agentic AI, and cybersecurity are driving complexity and opportunity in IT decision-making.

• Customers increasingly operate across mainframe, private cloud, and hyperscaler environments, with platform choice driven by regulation and strategic needs.

• Regulatory pressures and evolving governance around AI and data are lengthening sales cycles but also deepening customer relationships.