By Will Feuer
Kyndryl Holdings narrowed its fiscal second-quarter loss as the provider of information-technology-infrastructure services cut costs ahead of schedule.
The company, which was spun off from International Business Machines in 2021, reported a loss of $142 million, or 62 cents a share, for the three months ended Sept. 30, narrowed from a loss of $281 million, or $1.24 a share, in the same period last year.
Stripping out workforce-rebalancing charges and other one-time items, Kyndryl reported an adjusted loss of 5 cents a share. Analysts surveyed by FactSet expected an adjusted loss of 13 cents a share.
Revenue fell about 3%, to $4.07 billion. Analysts surveyed by FactSet expected sales of $3.91 billion.
The drop in revenue reflects Kyndryl’s effort to get out of unprofitable or low-margin third-party content in customer contracts.
“We sit at the center of the secular trends that our customers want to be a part of,” Chief Executive Martin Schroeter said in an interview. “Customers are now seeing how much automation improves how they operate and so they’re now pulling us faster on this journey than what we’d assumed.”
Demand, he said, has remained stable despite the broader slowdown in enterprise-technology spending. “We’re not discretionary,” he said, adding that he expects demand to keep holding up.
Write to Will Feuer at [email protected]
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