Kyndryl insiders say there's little new business
Special report Kyndryl, the managed infrastructure services business spun out of IBM in 2021, earlier this month repeated its somewhat glum prediction that its revenue will shrink by two to four percent for its fiscal 2025, the year ending March 31.
That rate of decline is a bit better than what we saw in Q1 FY2025, the three months to June 30, 2024, and the following quarter, which saw constant-currency revenue slippage of eight percent and seven percent, respectively. But it's consistent with the previous four years, in which revenue fell from $18.65 billion in FY2021 to $17.20 billion in FY2022 to $17 billion in FY2023 to $16.1 billion in FY2024.
But in Q4 FY2025, Kyndryl anticipates positive revenue growth in constant-currency compared to the same quarter a year prior. It attributes that projection in part to unspecified "signings growth."
We heard last month from several laid-off Kyndryl employees that the outfit has not been winning new IT service contracts and has been laying workers off as a result.
