Kyndryl Holdings, the provider of information-technology-infrastructure services that was spun off from International Business Machines in 2021, has reported a narrower than expected loss for its fiscal second quarter. The company reported a loss of $142 million or 62 cents per share for the three months ended Sept. 30, compared to a loss of $281 million or $1.24 per share in the same period last year.
When excluding one-time items and workforce-rebalancing charges, Kyndryl's adjusted loss was 5 cents per share, beating analysts' expectations of a 13-cent loss. Despite a 3% decline in revenue to $4.07 billion, which reflects the company's strategic shift away from unprofitable third-party content in customer contracts, Kyndryl's performance remains stable.
"We sit at the center of the secular trends that our customers want to be a part of," says Chief Executive Martin Schroeter. He adds that customers are recognizing the benefits of automation and driving the company's growth.
Despite a broader slowdown in enterprise-technology spending, Kyndryl is confident in its demand, as it provides essential services rather than discretionary ones.