Kyndryl reports $55M net loss in Q1 2027, driven by $152M workforce charges; reaffirms fiscal 2027 outlook.

Kyndryl posted revenues of $3.6 billion and a net loss of $55 million for Q1 fiscal 2027, impacted by $152 million in workforce rebalancing charges. Despite a 3% revenue decline year-over-year, the company saw strong contract signings and growth in AI-led modernization and hyperscaler-related revenues. Kyndryl expects to save $400-$500 million annually in operating expenses by fiscal 2028 from these restructuring efforts. The company reaffirmed its fiscal 2027 guidance, targeting adjusted pretax income of $600-$700 million and free cash flow of $400-$500 million.