Kyndryl (KD) Misses Q4 Revenue and EPS Estimates, Shares Drop 25.3%

Kyndryl (NYSE:KD) reported Q4 CY2025 revenue of $3.86B, 3.1% YoY, but missed revenue and EPS estimates. Non-GAAP profit of $0.52/share was 13.7% below consensus. The stock fell 25.3% to $17.55 in after-hours trading on February 9, 2026. Supporting context: Revenue growth slowed to 3.1% from 4.8% in the prior-year period as the company expanded signings in AI, cloud, and security through hyperscaler alliances. Over the past five years, annualized revenue has declined at 4.1% and 4.8%, versus a sell-side 4.8% forward outlook. The operating margin contracted to 2.9% in Q4, down 3.7 percentage points from a year ago, while adjusted EPS of $0.52 missed by 13.7% despite a 66.3% two-year CAGR. Analysts expect full-year 2026 adjusted EPS of $1.79, implying 81.7% growth.