Kyndryl Holdings Inc Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jamie Friedman - Susquehanna Financial Group LLLP - Analyst : Hi. Congratulations on a year well done. So Martin, I, my first question is for you. I was wondering how you think of the accomplishments in '25 and your preliminary view of the positioning of the company mindshare and technology in '26. How does that set you up for the midterm cadence that you shared at the analyst day?

Question: Jamie Friedman - Susquehanna Financial Group LLLP - Analyst : And then for my follow up, I'd be interested in your perspective on where you are with the journey with the focus accounts. Are you closer to the middle or the end at this point? And what have you learned from the Kind of restructuring or the conversations at least from those accounts that, got you here, since the separation 3.5 years ago. Yeah.

Question: Tien-Tsin Huang - JPMorgan - Analyst : Hi. Thanks. Congrats on the positive urban growth milestone. Good to see that. I also like Martin to make. Discussions or going through some of the larger deals you guys want, which brings me to my question around Book to bill, do you think book to build, given some of the wins that you've had and the And the pipeline that you can still maintain this book to bill above one for the better part of fiscal '26, and I'm curious given some of the larger deals, maybe with the duration of the larger deals, maybe with the duration. Of the backlog looks like is that changing just to think about ACV maybe improving underneath it.

Question: Tien-Tsin Huang - JPMorgan - Analyst : Perfect. And just my follow-up within that was the ACV question cause I think you got it to. Consults growing in the double digit. I know it was running very hot in '25, so I think that will Give you some short-term lift and conversion, but then you have a lot of longer duration deals as well. Can you just talk about ACV and how the year will play out with consult presumably growing a little bit slower and and backlog conversion making up for it to get to that positive reference growth for the year.

Question: Ian Zaffino - Oppenheimer & Co., Inc. - Analyst : Alright, great. Thank you very much. Very good quarter. Wanted to ask on, the guide and the revenue growth that you're expecting for the year, I would have expected, with signing growth 46% or so, that might seem very conservative, so maybe kind of walk us through, how you're kind of getting there and I know that there are some legacy REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 12:30PM, KD.N - Q4 2025 Kyndryl Holdings Inc Earnings Call signings that are starting to fall off and. Maybe the better question is how do we think about, revenues maybe not just this current year but subsequent years as you know some of those legacy signings roll off and I would imagine revenues would then accelerate, but, help me understand that a little bit thanks. Yeah.

Question: Ian Zaffino - Oppenheimer & Co., Inc. - Analyst : Okay, understood. And then as a follow up, it seems like you have incredible amount of visibility, just in the business and the way the state of the contracts work and like I said earlier you're coming off this massive acceleration in the business, so how are you then thinking about I guess capital allocation, and maybe, your tolerance or your appetite to get a little bit more aggressive on that side. Thanks.

Question: Divya Goyal - Scotiabank GBM - Analyst : Thanks a lot for all the color you provided. I actually wanted to go back and circle back on the accounts discussion that we had and maybe just get a little bit more clarity on the impact of macro on some of your strategic global accounts and trying to understand what are their key priorities and could they be impacted given all the global uncertainties out there. And I also I'm also in line trying to understand what is what is the percentage of revenue that could be potentially exposed to macro uncertainties if at all. Thank you.

Question: Divya Goyal - Scotiabank GBM - Analyst : That's great. Just as a follow up for doing this discussion, here, Martin, I wanted to get a little bit more color quickly on Kindle Bridge. Is it fair to assume that Kinder Bridge can provide some additional leverage in Such uncertain macro conditions when global clients potentially pull back on new implementations or enhancements and could Kindle Bridge actually help the company uncover new opportunities here.

Question: Tyler DuPont - BofA Global Research - Analyst : Good morning, Martin and David, thanks for taking the questions. I want to start just by echoing the congratulations on the quarter, it's nice to see a return to positive constant currency growth, definitely move in the right direction there. But I wanted to first ask about growth trends in the consult business. First, maybe just discuss, the go to market and consults and if that's changed at all in recent quarters, given the solid growth that we've seen and the fact that, this component keeps increasing as a percent of total, I think it's now around 25% as a 42. How should we be anticipate the growth there and any margin dynamics among those contracts compared to the company average worth mentioning.

Question: Tyler DuPont - BofA Global Research - Analyst : Understood that that's helpful, Martin, and then just on margins, particularly from a booking lens, nice to see. Signing to maintain that 9% adjusted PTI margin profile, but given the strength and bookings that you've seen over the past several quarters, have you given any thought to maybe flexing that pricing muscle a bit harder?