Kyndryl

Kyndryl just posted 3% revenue growth, a real shift for a business that has been shrinking for years. Their cloud partnerships pulled in 500 million dollars in a single quarter, up 58% year over year, while their consulting arm grew 24%. One out of every four new contracts they sign now includes AI work, putting them right where corporate spending is heading.

The business is throwing off cash. Adjusted EBITDA hit 696 million dollars in the quarter, operating cash flow came in at 427 million, and they signed eleven separate contracts worth more than 50 million dollars each. Management has now bought back 349 million dollars of stock, retiring 5% of shares outstanding since late 2024.

Kyndryl just replaced three of its top finance and legal officers with interim leaders all on the same day: a new CFO, general counsel, and corporate controller. On top of that, they're delaying their quarterly SEC filing while a review wraps up. Management says the numbers don't need to change, but that's a lot of turnover during an active review.

Even with the consulting wins, full-year revenue is still expected to decline 2% to 3% in constant currency. Total signings over the last twelve months were 15.4 billion dollars, well below the 18 billion the business used to clear, and the company hasn't proven it can replace shrinking legacy work fast enough to flip back into real growth.