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FY25 results released by Kyndryl yesterday illustrate its ongoing progression along its stated evolutionary path.
Notably, we saw revenue from Consult grow 26% in the year and the continuation of its pivot away from lower margin historic deals. Indeed, under the firm’s “Accounts” initiative (one of its Three As), Kyndryl has moved away from contracts with “substandard margins” to the tune of $900m in annualised benefits – ahead of its $850m target for FY25.
The impact of this on the fiscal figures is clear to see. FY25 revenue was down 4% (constant currency) to $15.1bn, while pretax income was $435m – a swing from the pretax loss of $168m in the prior year.
Also worthy of note are the benefits that Kyndryl’s Bridge AI delivery platform has driven. That too is generating cost savings, which the firm says are in the region of $775m in annualised savings as of year-end – again, ahead of the target ($750m). Profit is expected to improve further in the current year (FY26), based on an assumption of (just) 1% in revenue growth.
We ran an assessment on Kyndryl in the UK for TechMarketView’s latest Market Readiness Index, which helps senior tech buyers understand the ability of suppliers to deliver AI transformation. How did the company fare, what should customers take away from this, and what does this mean for suppliers playing in the same fields?
Find out here: Market Readiness Index: The Road to AI Part 2.
Posted by: Kate Hanaghan at 09:50
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results
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