On Tuesday, Kyndryl Holdings, Inc. (NYSE:KD) reported a second-quarter earnings beat, highlighting its expansion of AI services in the U.K., France, Singapore, and India, alongside increased share buybacks.

The provider of IT infrastructure services reported second-quarter adjusted earnings per share of 38 cents, beating the analyst consensus estimate of 36 cents.

Quarterly revenues of $3.721 billion (down 1% year over year) marginally missed the Street view of $3.840 billion. Sales fell 3.7% in constant currency.

Also Read: IBM’s Quantum Roadmap Sets Stage For Real Profits Before 2030

On a constant-currency basis, the decline mirrors efforts to exit inherited no-margin and low-margin third-party content. Longer sales cycles also weighed on year-over-year comparisons.

Segments

Kyndryl’s hyperscaler cloud revenue soared 65% to $440 million this quarter. At this pace, the $1.8 billion 2026 target looks squarely in sight, the company said.

In the second quarter, Kyndryl Consult revenues grew 28% year-over-year. Kyndryl Consult signings have grown 11% over the last twelve months.

Kyndryl’s book-to-bill stayed above 1 for a fifth ...