Kyndryl (KD) investor relations material

Key customer priorities and industry trends

• Enterprises are prioritizing IT infrastructure modernization, cybersecurity, and resiliency to adapt to new technologies and regulatory changes.

• Geopolitical complexity and regulatory scrutiny are influencing long-term IT partnership decisions, especially in regulated industries.

• Modernization is seen as a continuous process, driven by evolving technology and workforce needs.

• Private cloud adoption is resurging in response to geopolitical and innovation factors.

• Trusted partnerships and engineering expertise are driving new business and expanded service scopes.

Regional performance and global delivery

• U.S. segment achieved 5% revenue growth for two consecutive quarters, attributed to competitive value propositions and new business wins.

• U.S. best practices and innovations are transferable globally, though regional priorities like data sovereignty shape value propositions in Europe and Asia.

• Application modernization and private cloud are key growth areas in Europe, with notable wins such as the Bank of Luxembourg.

• Elongated sales cycles in Europe and Asia-Pacific persist due to increased stakeholder scrutiny and regulatory complexity.

Growth drivers: Consult and hyperscalers

• Revenue from hyperscaler partnerships (AWS, Google, Azure) grew from zero to nearly $2 billion, driven by investments in skills and capabilities.

• Consult business has consistently grown, with a book-to-bill ratio above one and increasing share of overall revenue.

• Both Consult and hyperscaler segments are expected to remain key growth drivers.