Kyndryl aims to generate $1 billion in revenue from hyperscalers by fiscal year 2025. In the second quarter, the company recognized $260 million in revenue from customers using services from large-scale cloud providers. The company's net loss narrowed to $43 million in the quarter ended Sept. 30, compared with a net loss of $142 million in the same period last year. CEO Martin Schroeter expects a continued focus on data security and system resiliency to drive demand for Kyndryl's services.
Key takeaways:
- Kyndryl, the former infrastructure services business of IBM, beat second-quarter revenue estimates due to increased demand for its consulting services related to generative AI technology.
- The company's second-quarter revenue fell by 7% to $3.77 billion, slightly above the average estimate of $3.72 billion by four analysts polled by LSEG.
- Kyndryl aims to generate $1 billion in revenue in its fiscal year 2025 from hyperscalers, with $260 million recognized in the second quarter from customers using services from large-scale cloud providers.
- The company narrowed its net loss to $43 million in the quarter ended Sept. 30, compared with a net loss of $142 million in the year-ago-period.