Kyndryl Holdings, Inc.

Kyndryl Holdings, Inc. is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries, and is described as the world’s largest IT infrastructure services provider. The Company designs, builds, manages and modernizes complex information systems, offering services across cloud services, core enterprise services, applications, data and artificial intelligence services, digital workplace services, security and resiliency services and network and edge services. The Company was formed in November 2021 from a spin-off from International Business Machines Corporation of the infrastructure services unit of IBM’s Global Technology Services segment. The Company is organized into four reportable segments by geography: United States, Japan, Principal Markets and Strategic Markets. The Company’s strategy is centered on its “three-A” initiatives – Alliances, Advanced Delivery and Accounts – which have become a core part of its operational discipline. As of March 31, 2026, approximately 45 percent of the Company’s revenue is derived from companies in the financial services industry, 17 percent from retail, travel and logistics companies, 14 percent from the industrial sector, 13 percent from healthcare companies and the public sector, and 11 percent from technology, media and telecom companies. In fiscal year 2026, the five largest customers accounted for approximately 10 percent of the Company’s revenue. As of March 31, 2026, the Company had approximately 72,000 employees in 60 countries, with approximately 90% of employees working outside the U.S. The Company’s revenue for the fiscal year ended March 31, 2026 was $13,088 million ¹, compared to $13,578 million ² in the prior year. Net income for fiscal year 2026 was $1,006 million ³, compared to a net loss of $(846) million ⁴ in the prior year. Diluted earnings per share was $4.42 ⁵ in fiscal year 2026, compared to a diluted loss per share of $(3.73) ⁶ in the prior year.

The Company’s forward-looking statements include plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook, and business trends. Management’s outlook is subject to numerous risks and uncertainties, including failure to attract new customers, retain existing customers or sell services to customers, failure to meet growth and productivity objectives and maintain the capital allocation strategy, competition, impacts of relationships with critical suppliers and partners, and failure to address and adapt to technological developments and trends. The Company’s goals for profitability and growth rely upon a number of assumptions, including the ability to make successful investments to grow and further develop the business and simplify operations. The Company may invest significantly in key strategic areas to drive long-term revenue growth and share gains, which may adversely affect near-term revenue growth and results of operations. The Company’s productivity initiatives are subject to known and unknown risks and uncertainties, including assumptions about cash expenditures, cost savings and the effectiveness of the Company’s reduced spend and risks affecting the timing and amount of workforce rebalancing charges, payments and related savings. The Company’s ability and decisions to return capital to stockholders depend on a variety of factors, including the ability to maintain and increase operating margins, cash flow generated from operations, cash and investment balances, net income and overall liquidity position, as well as debt balance, potential alternative uses of cash and anticipated future economic conditions and financial results. The Company’s capital allocation strategy includes a share repurchase program, and in November 2024, the Board of Directors authorized a share repurchase program of up to $300 million of the Company’s common stock, and in November 2025, the Board of Directors authorized an additional $400 million of repurchase capacity under this program. During the year ended March 31, 2026, the Company repurchased 11.6 million shares of its common stock at an aggregate cost of $304 million under the Share Repurchase Program.

The Company faces a number of material risks, including the inability to attract new customers, retain existing customers and sell services to customers, which could adversely impact revenue and results of operations. The Company may not meet its growth and productivity objectives and maintain its capital allocation strategy, and competition in the markets in which it operates may adversely impact results of operations. The Company’s business could be adversely impacted if it does not successfully manage and/or develop relationships with critical suppliers and partners. The Company is subject to risks relating to cybersecurity, data governance and privacy, and the regulatory environment with regard to these matters is increasingly complex. The Company is also subject to an ongoing SEC Division of Enforcement investigation relating to the Company’s cash management practices, related disclosures, the efficacy of the Company’s internal control over financial reporting, and certain other matters, and the Company cannot currently predict its final outcome. The Company has identified material weaknesses in its internal control over financial reporting, and if it fails to remediate these material weaknesses in a timely manner, it could cause investors to lose confidence in the accuracy and completeness of the Company’s financial reports. The Company’s goodwill balance as of March 31, 2026 was $786 million, which represented 6% of total consolidated assets, and the Company may be required to record impairment charges if goodwill or long-lived assets become impaired.

Management’s message to shareholders emphasizes the Company’s position as a leading provider of mission-critical enterprise technology services and its strategy centered on the “three-A” initiatives – Alliances, Advanced Delivery and Accounts. The forward-looking statements in the filing include plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook, and business trends. The strategic priorities emphasized include building and enriching trusted relationships with customers and technology partners, differentiating through scale-derived intellectual property, and providing mission-critical expertise across industries with a broad ecosystem of leading technology providers. Management also highlights the Company’s focus on its “three-A” initiatives as a core part of operational discipline to adapt to customer needs, enhance operation efficiency and accelerate investments in growth.