Kyndryl Holdings Inc(NYSE:KD) 
Kyndryl Holdings, Inc. is an American multinational information technology infrastructure services provider that designs, builds, manages and develops large-scale information systems. It was created from the spin-off of IBM's infrastructure services business.
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At a glance:
- Global IT Infrastructure Services Pure-Play (Former IBM Managed Infrastructure): Kyndryl operates as a focused provider of IT infrastructure services and support, following its separation from IBM, with an emphasis on running and modernizing enterprise-critical systems.
- Revenue Mix Skewed to Long-Term Enterprise and Mainframe/Hybrid Environments: The company’s work often centers on complex, regulated, and mission-critical environments (e.g., hybrid cloud, data center operations, networks), typically delivered under multi-year service engagements.
- Transformation Focus: Modernization, Cloud Adoption, and Automation: Strategic priorities include shifting clients from legacy infrastructure toward modern architectures, improving delivery through automation, and expanding higher-value consulting/implementation capabilities.
- Profitability and Cash Flow Improvement Often Tied to Contract Resets and Cost Actions: Financial performance is commonly influenced by pricing/renewal dynamics of large contracts, workforce and delivery efficiency initiatives, and ongoing efforts to improve margins and cash generation.
- Key Risks: Client Concentration, Competitive IT Services Market, and Execution on Turnaround: Results can be sensitive to large-client renewals, pricing pressure from major IT services competitors, and the company’s ability to execute operational improvements while investing in growth areas.
Bull Thesis:
- Significant Margin Expansion and Profitability Improvement: Kyndryl is actively shedding low-margin legacy contracts and pivoting towards higher-value, cloud-centric services. This strategic shift, combined with cost optimization efforts, is leading to consistent improvements in gross and operating margins, signaling a healthier underlying business model.
- Deepening Strategic Alliances with Hyperscalers: The company has forged and deepened critical partnerships with major cloud providers like AWS, Microsoft Azure, and Google Cloud. These alliances are crucial for delivering modern IT solutions, expanding Kyndryl's capabilities, and capturing a larger share of the rapidly growing hybrid cloud and multi-cloud market.
- Large and Sticky Global Enterprise Client Base: Inherited from IBM, Kyndryl boasts a massive, global base of enterprise clients with long-standing relationships. This provides a stable foundation for cross-selling new, higher-value services and offers significant opportunities for growth within existing accounts as clients undergo digital transformation.
- Strong Market Demand for Hybrid IT and Managed Services: The overall market for complex IT infrastructure management, hybrid cloud integration, cybersecurity, and digital workplace services remains robust. Kyndryl is well-positioned to capitalize on enterprises' increasing need for expert assistance in managing their evolving and complex IT environments.
Bear Thesis:
- Persistent Revenue Decline and Growth Challenges: Despite improvements in profitability metrics, Kyndryl continues to report year-over-year revenue declines. The challenge lies in accelerating the growth of new, higher-value services fast enough to offset the ongoing contraction from legacy contracts and achieve overall top-line growth.
- Execution Risk of Strategic Transformation: Transforming a massive, legacy IT services business is inherently complex and carries significant execution risk. Challenges include upskilling a large workforce, developing competitive new offerings, winning new deals against established players, and managing the transition away from legacy systems and contracts effectively.
- Intense Competitive Landscape: The IT services market is highly competitive, with strong players ranging from global consultancies (Accenture, TCS, Wipro) to specialized cloud integrators and hyperscaler professional services. Kyndryl must continually differentiate its offerings and value proposition to win and retain market share.
- Longer-Than-Expected Path to Consistent Free Cash Flow and Net Profitability: While gross margins are improving, achieving consistent positive free cash flow and strong net profitability might take longer than anticipated. The ongoing investments in new capabilities, workforce transformation, and the costs associated with exiting legacy contracts could continue to weigh on the bottom line in the near to medium term.
Main Competitors:
- Accenture plc ($ACN) (Technology Consulting & Managed Services), Accenture is a global professional services company providing a broad range of services in strategy, consulting, technology, and operations. They compete directly with Kyndryl for large enterprise IT transformation projects, cloud migration, managed services, and application modernization, often targeting the same large enterprise clients with a broader portfolio that includes higher-value consulting.
- Tata Consultancy Services Ltd. ($TCS.NS) (IT Services & Consulting), TCS is one of the largest IT services companies globally, offering a comprehensive suite of services including consulting, application development, infrastructure services, cloud services, and business process services. They compete with Kyndryl on cost-effective delivery, global scale, and a strong presence in application services and digital transformation, often vying for the same large enterprise outsourcing contracts.
- DXC Technology Company ($DXC) (Global IT Services), DXC Technology is a global IT services company providing a range of services including cloud, applications, security, and IT outsourcing. DXC is a direct competitor to Kyndryl, particularly in traditional IT outsourcing, mainframe services, and managed infrastructure services for large, complex enterprise environments, often having similar legacy client bases and operational focus.
- Capgemini SE ($CAP.PA) (Consulting, Technology & Outsourcing Services), Capgemini is a French multinational information technology services and consulting company. They offer services in consulting, digital transformation, technology, and engineering. They compete with Kyndryl across various IT services, including cloud, data, applications, and infrastructure management, often emphasizing digital transformation and industry-specific solutions for large enterprises.
Moat:
Kyndryl's primary moat lies in its deep expertise and long-standing relationships in managing complex, mission-critical IT infrastructure for large enterprises, particularly in hybrid cloud environments and legacy systems like mainframes. Their strength is in operational excellence, reliability, and the ability to integrate diverse technologies across global operations. However, the IT services market is intensely competitive and rapidly evolving. Kyndryl faces competition from established global IT services giants (like those listed above) who offer similar or broader portfolios, often with stronger digital transformation capabilities or more aggressive pricing. Additionally, cloud hyperscalers (AWS, Azure, GCP) are increasingly offering their own professional and managed services, potentially disintermediating traditional providers. Kyndryl's challenge is to leverage its foundational strengths while rapidly modernizing its service offerings, expanding partnerships, and investing in new skills (e.g., AI, cybersecurity, cloud-native) to remain competitive and grow beyond its legacy base.
Income Statements:
Quarterly
Annual
| Unit: USD | 2026-03-31 | 2025-12-31 | 2025-09-30 | 2025-06-30 | 2025-03-31 | 2024-12-31 | 2024-09-30 | 2024-06-30 | 2024-03-31 | 2023-12-31 | 2023-09-30 | 2023-06-30 | 2023-03-31 | 2022-12-31 | 2022-09-30 | 2022-06-30 | 2021-12-31 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
revenues | 3,769,000,000 | 3,859,000,000 | 3,721,000,000 | 3,743,000,000 | 3,774,000,000 | 3,739,000,000 | |||||||||||
cost of services | 2,920,000,000 | 3,016,000,000 | 2,920,000,000 | 2,947,000,000 | 3,024,000,000 | 2,934,000,000 | |||||||||||
selling, general and administrative expenses | 678,000,000 | 672,000,000 | 659,000,000 | 646,000,000 | 647,000,000 | 657,000,000 | 717,000,000 | 705,000,000 | 634,000,000 | 720,000,000 | 783,000,000 | 731,000,000 | 706,000,000 | 694,000,000 | |||
workforce rebalancing charges | -1,000,000 | 16,000,000 | 19,000,000 | 25,000,000 | 39,000,000 | 36,000,000 | -76,000,000 | 19,000,000 | 39,000,000 | 58,000,000 | 55,000,000 | 10,000,000 | 3,000,000 | 4,000,000 | |||
transaction-related costs | 3,000,000 | 38,000,000 | 20,000,000 | 615,000,000 | -77,000,000 | 48,000,000 | 42,000,000 | 46,000,000 | 48,000,000 | 68,000,000 | 103,000,000 | ||||||
interest expense | 29,000,000 | 21,000,000 | 20,000,000 | 19,000,000 | 25,000,000 | 28,000,000 | -28,000,000 | 31,000,000 | 31,000,000 | 29,000,000 | 29,000,000 | 27,000,000 | 19,000,000 | 20,000,000 | |||
other expense | 8,000,000 | 6,000,000 | 5,000,000 | 13,000,000 | 44,000,000 | 1,000,000 | 21,000,000 | 8,000,000 | 5,000,000 | 19,000,000 | 30,000,000 | -10,000,000 | -3,000,000 | ||||
total costs and expenses | 3,636,000,000 | 3,768,000,000 | 3,622,000,000 | 3,651,000,000 | 3,779,000,000 | 3,675,000,000 | 8,193,000,000 | 3,883,000,000 | 4,182,000,000 | 4,302,000,000 | 4,543,000,000 | 4,441,000,000 | 4,399,000,000 | 4,493,000,000 | |||
income before income taxes | 133,000,000 | 91,000,000 | 98,000,000 | 92,000,000 | -5,000,000 | 64,000,000 | -1,738,000,000 | 53,000,000 | -109,000,000 | -109,000,000 | -288,000,000 | -138,000,000 | -219,000,000 | -205,000,000 | |||
provision for income taxes | 115,000,000 | 34,000,000 | 30,000,000 | 36,000,000 | 38,000,000 | 53,000,000 | 271,000,000 | 65,000,000 | 33,000,000 | 32,000,000 | 450,000,000 | -32,000,000 | 61,000,000 | 45,000,000 | |||
net income | 17,000,000 | 57,000,000 | 68,000,000 | 56,000,000 | -43,000,000 | 11,000,000 | -2,009,000,000 | -12,000,000 | -142,000,000 | -141,000,000 | -737,000,000 | -106,000,000 | -281,000,000 | -250,000,000 | |||
yoy | -258.14% | 409.09% | -69.72% | -107.80% | 172.59% | -88.68% | -49.47% | -43.60% | |||||||||
qoq | -70.18% | -16.18% | 21.43% | -490.91% | -100.55% | 16641.67% | -91.55% | 0.71% | -80.87% | 595.28% | -62.28% | 12.40% | |||||
basic earnings per share | 0.08 | 0.25 | 0.29 | 0.24 | -0.19 | 0.05 | -8.99 | -0.05 | -0.62 | -0.62 | -3.25 | -0.47 | -1.24 | -1.11 | |||
diluted earnings per share | 0.08 | 0.25 | 0.29 | 0.23 | -0.19 | 0.05 | -8.99 | -0.05 | -0.62 | -0.62 | -3.25 | -0.47 | -1.24 | -1.11 | |||
weighted-average basic shares outstanding | 228.3 | 227.7 | 230.6 | 230.2 | 231.6 | 230.5 | 224.1 | 229.6 | 229.1 | 227.9 | 226.7 | 227 | 226.8 | 225.3 | |||
weighted-average diluted shares outstanding | 233.8 | 232.5 | 235.9 | 239.1 | 231.6 | 235.8 | 224.1 | 229.6 | 229.1 | 227.9 | 226.7 | 227 | 226.8 | 225.3 | |||
revenues * | 6,455,000,000 | 3,936,000,000 | 4,073,000,000 | 4,193,000,000 | 4,255,000,000 | 4,303,000,000 | 4,179,000,000 | 4,288,000,000 | |||||||||
cost of services ** | 6,495,000,000 | 3,184,000,000 | 3,422,000,000 | 3,449,000,000 | 3,612,000,000 | 3,596,000,000 | 3,613,000,000 | 3,677,000,000 | |||||||||
impairment expense |
Balance Sheets:
Quarterly
Annual
| Unit: USD | 2026-03-31 | 2025-12-31 | 2025-09-30 | 2025-06-30 | 2025-03-31 | 2024-12-31 | 2024-09-30 | 2024-06-30 | 2024-03-31 | 2023-12-31 | 2023-09-30 | 2023-06-30 | 2023-03-31 | 2022-12-31 | 2022-09-30 | 2022-06-30 | 2021-12-31 | 2021-09-30 |
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assets: | ||||||||||||||||||
current assets: | ||||||||||||||||||
cash and cash equivalents | 2,623,000,000 | 1,348,000,000 | 1,331,000,000 | 1,462,000,000 | 1,786,000,000 | 1,501,000,000 | 1,325,000,000 | 1,269,000,000 | 1,553,000,000 | 1,688,000,000 | 1,408,000,000 | 1,507,000,000 | 1,847,000,000 | 2,002,000,000 | 1,888,000,000 | 1,871,000,000 | 2,223,000,000 | 735,000,000 |
restricted cash | 3,000,000 | 4,000,000 | 5,000,000 | 4,000,000 | 3,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 1,000,000 | 2,000,000 | 3,000,000 | 14,000,000 | 12,000,000 | 14,000,000 | 12,000,000 | 17,000,000 | 17,000,000 | 16,000,000 |
accounts receivable | 1,300,000,000 | 1,353,000,000 | 1,316,000,000 | 1,277,000,000 | 1,345,000,000 | 1,374,000,000 | 1,441,000,000 | 1,440,000,000 | 1,599,000,000 | 1,658,000,000 | 1,663,000,000 | 1,490,000,000 | 1,746,000,000 | |||||
deferred costs | 1,166,000,000 | 1,089,000,000 | 1,101,000,000 | 1,144,000,000 | 1,009,000,000 | 889,000,000 | 994,000,000 | 1,029,000,000 | 1,081,000,000 | 924,000,000 | 952,000,000 | 1,075,000,000 | 1,070,000,000 | 927,000,000 | 973,000,000 | 1,092,000,000 | 920,000,000 | 1,142,000,000 |
prepaid expenses and other current assets | 436,000,000 | 532,000,000 | 538,000,000 | 580,000,000 | 446,000,000 | 529,000,000 | 623,000,000 | 613,000,000 | 514,000,000 | 578,000,000 | 566,000,000 | 567,000,000 | 510,000,000 | 486,000,000 | 512,000,000 | 522,000,000 | 337,000,000 | 217,000,000 |
total current assets | 5,528,000,000 | 4,325,000,000 | 4,291,000,000 | 4,468,000,000 | 4,589,000,000 | 4,297,000,000 | 4,387,000,000 | 4,355,000,000 | 4,747,000,000 | 4,851,000,000 | 4,593,000,000 | 4,653,000,000 | 4,963,000,000 | 4,967,000,000 | 4,964,000,000 | 5,404,000,000 | 5,777,000,000 | 3,856,000,000 |
property and equipment | 2,517,000,000 | 2,621,000,000 | 2,628,000,000 | 2,634,000,000 | 2,570,000,000 | 2,490,000,000 | 2,735,000,000 | 2,690,000,000 | 2,674,000,000 | 2,806,000,000 | 2,646,000,000 | 2,750,000,000 | 2,779,000,000 | 2,762,000,000 | 2,592,000,000 | 2,651,000,000 | 2,923,000,000 | 3,480,000,000 |
operating right-of-use assets | 853,000,000 | 855,000,000 | 869,000,000 | 849,000,000 | 731,000,000 | 702,000,000 | 805,000,000 | 829,000,000 | 864,000,000 | 915,000,000 | 898,000,000 | 932,000,000 | 964,000,000 | 1,115,000,000 | 1,093,000,000 | 1,173,000,000 | 1,361,000,000 | 1,166,000,000 |
deferred taxes | 240,000,000 | 281,000,000 | 227,000,000 | 222,000,000 | 204,000,000 | 184,000,000 | 209,000,000 | 207,000,000 | 220,000,000 | 208,000,000 | 186,000,000 | 190,000,000 | 248,000,000 | 478,000,000 | 481,000,000 | 525,000,000 | 675,000,000 | 845,000,000 |
goodwill | 786,000,000 | 787,000,000 | 791,000,000 | 793,000,000 | 790,000,000 | 787,000,000 | 790,000,000 | 786,000,000 | 805,000,000 | 809,000,000 | 806,000,000 | 807,000,000 | 812,000,000 | 812,000,000 | 811,000,000 | 815,000,000 | 732,000,000 | 1,201,000,000 |
intangible assets | 165,000,000 | 167,000,000 | 168,000,000 | 168,000,000 | 218,000,000 | 219,000,000 | 227,000,000 | 222,000,000 | 188,000,000 | 192,000,000 | 188,000,000 | 187,000,000 | 171,000,000 | 158,000,000 | 139,000,000 | 154,000,000 | 36,000,000 | 47,000,000 |
pension assets | 222,000,000 | 179,000,000 | 173,000,000 | 166,000,000 | 148,000,000 | 130,000,000 | 123,000,000 | 109,000,000 | 105,000,000 | 105,000,000 | 97,000,000 | 100,000,000 | 94,000,000 | 58,000,000 | 54,000,000 | 58,000,000 | 58,000,000 | 35,000,000 |
other noncurrent assets | 360,000,000 | 221,000,000 | 206,000,000 | 227,000,000 | 162,000,000 | 85,000,000 | 67,000,000 | 66,000,000 | 67,000,000 | 97,000,000 | 158,000,000 | 245,000,000 | 267,000,000 | 315,000,000 | 338,000,000 | 367,000,000 | ||
total assets | 12,551,000,000 | 11,276,000,000 | 11,244,000,000 | 11,495,000,000 | 10,452,000,000 | 9,925,000,000 | 10,396,000,000 | 10,163,000,000 | 10,590,000,000 | 10,969,000,000 | 10,602,000,000 | 10,986,000,000 | 11,464,000,000 | 11,851,000,000 | 11,629,000,000 | 12,304,000,000 | 13,213,000,000 | 12,063,000,000 |
liabilities: | ||||||||||||||||||
current liabilities: | ||||||||||||||||||
accounts payable | 1,346,000,000 | 1,242,000,000 | 1,117,000,000 | 1,144,000,000 | 1,351,000,000 | 1,147,000,000 | 1,240,000,000 | 1,337,000,000 | 1,408,000,000 | 1,477,000,000 | 1,246,000,000 | 1,626,000,000 | 798,000,000 | |||||
value-added tax and income tax liabilities | 278,000,000 | 327,000,000 | 286,000,000 | 289,000,000 | 256,000,000 | 259,000,000 | 298,000,000 | 304,000,000 | 327,000,000 | 332,000,000 | 308,000,000 | 359,000,000 | 347,000,000 | 245,000,000 | 264,000,000 | 274,000,000 | 357,000,000 | |
current portion of long-term debt and short-term debt | 1,796,000,000 | |||||||||||||||||
accrued compensation and benefits | 463,000,000 | 370,000,000 | 459,000,000 | 437,000,000 | 652,000,000 | 492,000,000 | 538,000,000 | 414,000,000 | 609,000,000 | 559,000,000 | 609,000,000 | 473,000,000 | 533,000,000 | 388,000,000 | 534,000,000 | 503,000,000 | 381,000,000 | 471,000,000 |
deferred income | 888,000,000 | 759,000,000 | 827,000,000 | 854,000,000 | 746,000,000 | 782,000,000 | 856,000,000 | 805,000,000 | 825,000,000 | 793,000,000 | 790,000,000 | 785,000,000 | 820,000,000 | 817,000,000 | 726,000,000 | 774,000,000 | 872,000,000 | 875,000,000 |
operating lease liabilities | 265,000,000 | 285,000,000 | 291,000,000 | 289,000,000 | 274,000,000 | 259,000,000 | 278,000,000 | 271,000,000 | 285,000,000 | 257,000,000 | 274,000,000 | 307,000,000 | 316,000,000 | 329,000,000 | 322,000,000 | 350,000,000 | 360,000,000 | 328,000,000 |
accrued contract costs | 369,000,000 | 472,000,000 | 415,000,000 | 463,000,000 | 437,000,000 | 361,000,000 | 404,000,000 | 446,000,000 | 487,000,000 | 514,000,000 | 509,000,000 | 351,000,000 | 346,000,000 | 402,000,000 | 436,000,000 | 476,000,000 | 585,000,000 | 570,000,000 |
other accrued expenses and liabilities | 903,000,000 | 783,000,000 | 679,000,000 | 640,000,000 | 454,000,000 | 506,000,000 | 500,000,000 | 523,000,000 | 521,000,000 | 593,000,000 | 628,000,000 | 556,000,000 | 624,000,000 | 604,000,000 | 606,000,000 | 653,000,000 | 744,000,000 | 493,000,000 |
total current liabilities | 6,307,000,000 | 5,043,000,000 | 4,197,000,000 | 4,242,000,000 | 4,300,000,000 | 3,935,000,000 | 4,249,000,000 | 4,231,000,000 | 4,589,000,000 | 5,152,000,000 | 4,485,000,000 | 4,591,000,000 | 4,868,000,000 | 4,607,000,000 | 4,579,000,000 | 4,609,000,000 | 4,544,000,000 | 3,709,000,000 |
long-term debt | 2,293,000,000 | 2,295,000,000 | 3,004,000,000 | 3,014,000,000 | 3,042,000,000 | 3,072,000,000 | 3,106,000,000 | 3,109,000,000 | 3,112,000,000 | 2,629,000,000 | 3,123,000,000 | 3,149,000,000 | 3,111,000,000 | 3,097,000,000 | 3,101,000,000 | 3,107,000,000 | 3,128,000,000 | 280,000,000 |
retirement and nonpension postretirement benefit obligations | 490,000,000 | 544,000,000 | 513,000,000 | 517,000,000 | 483,000,000 | 475,000,000 | 510,000,000 | 492,000,000 | 500,000,000 | 493,000,000 | 481,000,000 | 501,000,000 | 504,000,000 | 660,000,000 | 625,000,000 | 671,000,000 | 856,000,000 | 995,000,000 |
other noncurrent liabilities | 1,176,000,000 | 1,119,000,000 | 1,191,000,000 | 1,336,000,000 | 443,000,000 | 419,000,000 | 435,000,000 | 298,000,000 | 332,000,000 | 375,000,000 | 423,000,000 | 401,000,000 | 450,000,000 | 389,000,000 | 433,000,000 | 474,000,000 | ||
total liabilities | 11,259,000,000 | 9,967,000,000 | 9,904,000,000 | 10,151,000,000 | 9,121,000,000 | 8,721,000,000 | 9,224,000,000 | 9,062,000,000 | 9,468,000,000 | 9,676,000,000 | 9,489,000,000 | 9,648,000,000 | 10,002,000,000 | 9,920,000,000 | 9,882,000,000 | 10,093,000,000 | 10,511,000,000 | 6,581,000,000 |
commitments and contingencies | ||||||||||||||||||
equity: | ||||||||||||||||||
stockholders’ equity | ||||||||||||||||||
common stock, par value 0.01 per share... | 4,701,000,000 | 4,710,000,000 | 4,686,000,000 | 4,656,000,000 | 4,631,000,000 | 4,607,000,000 | 4,575,000,000 | 4,549,000,000 | 4,524,000,000 | 4,501,000,000 | 4,476,000,000 | 4,451,000,000 | 4,428,000,000 | 4,397,000,000 | 4,370,000,000 | 4,341,000,000 | 4,218,000,000 | |
accumulated deficit | -1,869,000,000 | -1,886,000,000 | -1,943,000,000 | -2,011,000,000 | -2,067,000,000 | -2,136,000,000 | -2,351,000,000 | -2,308,000,000 | -2,319,000,000 | -2,274,000,000 | -2,262,000,000 | -2,120,000,000 | -1,978,000,000 | -1,241,000,000 | -1,136,000,000 | -855,000,000 | -375,000,000 | |
treasury stock | -582,000,000 | -532,000,000 | -427,000,000 | -317,000,000 | -184,000,000 | -107,000,000 | -69,000,000 | -53,000,000 | -45,000,000 | -42,000,000 | -35,000,000 | -30,000,000 | -23,000,000 | -21,000,000 | -17,000,000 | -17,000,000 | -1,000,000 | |
accumulated other comprehensive income | -1,074,000,000 | -1,098,000,000 | -1,088,000,000 | -1,094,000,000 | -1,160,000,000 | -1,270,000,000 | -1,090,000,000 | -1,192,000,000 | -1,145,000,000 | -995,000,000 | -1,167,000,000 | -1,062,000,000 | -1,062,000,000 | -1,303,000,000 | -1,567,000,000 | -1,353,000,000 | -1,143,000,000 | -1,615,000,000 |
total stockholders’ equity before non-controlling interests | 1,175,000,000 | 1,194,000,000 | 1,227,000,000 | 1,234,000,000 | 1,219,000,000 | 1,094,000,000 | 1,065,000,000 | 996,000,000 | 1,015,000,000 | 1,189,000,000 | 1,013,000,000 | 1,240,000,000 | 1,365,000,000 | 1,832,000,000 | 1,650,000,000 | 2,117,000,000 | ||
non-controlling interests | 117,000,000 | 115,000,000 | 112,000,000 | 110,000,000 | 113,000,000 | 110,000,000 | 107,000,000 | 105,000,000 | 107,000,000 | 104,000,000 | 100,000,000 | 99,000,000 | 97,000,000 | 99,000,000 | 96,000,000 | 95,000,000 | ||
total equity | 1,293,000,000 | 1,309,000,000 | 1,340,000,000 | 1,343,000,000 | 1,331,000,000 | 1,204,000,000 | 1,172,000,000 | 1,101,000,000 | 1,122,000,000 | 1,293,000,000 | 1,113,000,000 | 1,338,000,000 | 1,462,000,000 | 1,930,000,000 | 1,746,000,000 | 2,211,000,000 | 2,702,000,000 | 5,481,000,000 |
total liabilities and equity | 12,551,000,000 | 11,276,000,000 | 11,244,000,000 | 11,495,000,000 | 10,452,000,000 | 9,925,000,000 | 10,396,000,000 | 10,163,000,000 | 10,590,000,000 | 10,969,000,000 | 10,602,000,000 | 10,986,000,000 | 11,464,000,000 | 11,851,000,000 | 11,629,000,000 | 12,304,000,000 | 13,213,000,000 | 12,063,000,000 |
current portion of long-term debt | 805,000,000 | 124,000,000 | 128,000,000 | 129,000,000 | 129,000,000 | 135,000,000 | 130,000,000 | 126,000,000 | 628,000,000 | 121,000,000 | 134,000,000 | 110,000,000 | ||||||
accounts receivable (net of allowances of 32 at march 31, 2023, 44 at march 31, 2022, and 44 at december 31, 2021)* | 1,523,000,000 | |||||||||||||||||
accounts payable** | 1,774,000,000 | 1,719,000,000 | 1,594,000,000 | 1,486,000,000 | 1,140,000,000 | |||||||||||||
accounts receivable (net of allowances of 34 at december 31, 2022 and 44 at march 31, 2022)* | 1,539,000,000 | |||||||||||||||||
short-term debt | 103,000,000 | 97,000,000 | 93,000,000 | 105,000,000 | 112,000,000 | |||||||||||||
accounts receivable (net of allowances of 33 at september 30, 2022 and 44 at march 31, 2022)* | 1,578,000,000 | |||||||||||||||||
accounts receivable (net of allowances of 34 at june 30, 2022 and 44 at march 31, 2022)* | 1,902,000,000 | |||||||||||||||||
accounts receivable (net of allowances of 44 in 2021 and 91 in 2020)* | 2,279,000,000 | |||||||||||||||||
| ||||||||||||||||||
other assets | 385,000,000 | 78,000,000 | ||||||||||||||||
other liabilities | 501,000,000 | 255,000,000 | ||||||||||||||||
net parent investment | 7,045,000,000 | |||||||||||||||||
total stockholders’ equity before noncontrolling interests | 2,700,000,000 | |||||||||||||||||
noncontrolling interests | 3,000,000 | 51,000,000 | ||||||||||||||||
vat payable | 62,000,000 | |||||||||||||||||
total net parent investment | 5,430,000,000 |
Cashflow Statements:
Quarterly
Annual
| Unit: USD | 2026-03-31 | 2025-12-31 | 2025-09-30 | 2025-06-30 | 2025-03-31 | 2024-12-31 | 2024-09-30 | 2024-06-30 | 2024-03-31 | 2023-12-31 | 2023-09-30 | 2023-06-30 | 2023-03-31 | 2022-12-31 | 2022-09-30 | 2022-06-30 | 2021-12-31 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
cash flows from operating activities: | |||||||||||||||||
net income | 17,000,000 | 57,000,000 | 68,000,000 | 56,000,000 | 69,000,000 | 215,000,000 | -43,000,000 | 11,000,000 | -12,000,000 | -142,000,000 | -141,000,000 | -106,000,000 | -281,000,000 | -250,000,000 | -740,000,000 | ||
adjustments to reconcile net income to cash from operating activities: | |||||||||||||||||
depreciation and amortization: | |||||||||||||||||
depreciation of property, equipment and capitalized software | 185,000,000 | 193,000,000 | 193,000,000 | 191,000,000 | 189,000,000 | 195,000,000 | 149,000,000 | 127,000,000 | 208,000,000 | 221,000,000 | 210,000,000 | ||||||
depreciation of right-of-use assets | 67,000,000 | 75,000,000 | 74,000,000 | 73,000,000 | 107,000,000 | 66,000,000 | 84,000,000 | 70,000,000 | 78,000,000 | 82,000,000 | 91,000,000 | 94,000,000 | 106,000,000 | 85,000,000 | 90,000,000 | ||
amortization of transition costs and prepaid software | 312,000,000 | 314,000,000 | 305,000,000 | 308,000,000 | 304,000,000 | 327,000,000 | 337,000,000 | 310,000,000 | 315,000,000 | 306,000,000 | 325,000,000 | 325,000,000 | 291,000,000 | 293,000,000 | |||
amortization of capitalized contract costs | 118,000,000 | 109,000,000 | 125,000,000 | 106,000,000 | 106,000,000 | 109,000,000 | 98,000,000 | 107,000,000 | 137,000,000 | 143,000,000 | 138,000,000 | 115,000,000 | 111,000,000 | 111,000,000 | |||
amortization of acquisition-related intangible assets | 7,000,000 | 6,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 6,000,000 | 10,000,000 | 7,000,000 | 8,000,000 | 7,000,000 | 8,000,000 | ||||||
stock-based compensation | -9,000,000 | 23,000,000 | 26,000,000 | 24,000,000 | 22,000,000 | 29,000,000 | 25,000,000 | 24,000,000 | 24,000,000 | 26,000,000 | 22,000,000 | 27,000,000 | 28,000,000 | 26,000,000 | 18,000,000 | ||
deferred taxes | 23,000,000 | -30,000,000 | -7,000,000 | -10,000,000 | -23,000,000 | 5,000,000 | 0 | 17,000,000 | 165,000,000 | 4,000,000 | 25,000,000 | 26,000,000 | 243,000,000 | -36,000,000 | -5,000,000 | 46,000,000 | -1,246,000,000 |
net loss on asset sales and other | 77,000,000 | -44,000,000 | -94,000,000 | -41,000,000 | 27,000,000 | -28,000,000 | -7,000,000 | 29,000,000 | -38,000,000 | 19,000,000 | 2,000,000 | 42,000,000 | |||||
change in operating assets and liabilities: | |||||||||||||||||
right-of-use assets and liabilities | -73,000,000 | -84,000,000 | -85,000,000 | -88,000,000 | -102,000,000 | -67,000,000 | -80,000,000 | -65,000,000 | -74,000,000 | -92,000,000 | -103,000,000 | -82,000,000 | -109,000,000 | -84,000,000 | -65,000,000 | ||
workforce rebalancing liabilities | -14,000,000 | -4,000,000 | -4,000,000 | 3,000,000 | -3,000,000 | -9,000,000 | -20,000,000 | 7,000,000 | -10,000,000 | 5,000,000 | -23,000,000 | 0 | -7,000,000 | 6,000,000 | -22,000,000 | ||
current accounts receivable | |||||||||||||||||
lease and other receivables | |||||||||||||||||
accounts payable | 95,000,000 | 140,000,000 | -59,000,000 | -269,000,000 | 176,000,000 | -28,000,000 | -115,000,000 | -122,000,000 | 1,747,000,000 | 155,000,000 | -351,000,000 | -143,000,000 | 54,000,000 | 195,000,000 | -14,000,000 | -673,000,000 | |
taxes | 36,000,000 | 48,000,000 | -4,000,000 | 27,000,000 | 38,000,000 | -8,000,000 | -22,000,000 | -9,000,000 | 22,000,000 | -30,000,000 | -25,000,000 | -69,000,000 | 21,000,000 | 12,000,000 | 209,000,000 | ||
deferred transition costs and prepaid software | |||||||||||||||||
capitalized contract costs | |||||||||||||||||
other assets and other liabilities | 296,000,000 | -25,000,000 | -136,000,000 | 781,000,000 | 112,000,000 | -50,000,000 | 225,000,000 | -358,000,000 | -165,000,000 | 297,000,000 | -222,000,000 | -102,000,000 | -92,000,000 | -224,000,000 | 721,000,000 | ||
net cash from operating activities | 498,000,000 | 428,000,000 | 146,000,000 | -124,000,000 | 581,000,000 | 260,000,000 | 149,000,000 | -48,000,000 | 436,000,000 | 46,000,000 | -173,000,000 | 278,000,000 | 387,000,000 | 104,000,000 | 606,000,000 | ||
cash flows from investing activities: | |||||||||||||||||
capital expenditures | -116,000,000 | -220,000,000 | -129,000,000 | -143,000,000 | -240,000,000 | -109,000,000 | -134,000,000 | -122,000,000 | -174,000,000 | -175,000,000 | -100,000,000 | -245,000,000 | 0 | -213,000,000 | -152,000,000 | ||
free cash flows | 382,000,000 | 208,000,000 | 17,000,000 | -267,000,000 | 341,000,000 | 151,000,000 | 15,000,000 | -170,000,000 | 262,000,000 | -129,000,000 | -273,000,000 | 33,000,000 | 387,000,000 | -109,000,000 | 454,000,000 | ||
proceeds from disposition of property and equipment | 5,000,000 | 9,000,000 | 6,000,000 | 45,000,000 | 13,000,000 | 16,000,000 | 30,000,000 | 24,000,000 | 15,000,000 | 113,000,000 | 6,000,000 | 10,000,000 | 3,000,000 | 7,000,000 | 6,000,000 | ||
acquisitions and divestitures, net of cash acquired | 0 | 0 | 0 | 1,000,000 | 2,000,000 | 183,000,000 | 0 | -46,000,000 | |||||||||
other investing activities | -14,000,000 | -31,000,000 | 4,000,000 | 22,000,000 | 22,000,000 | -49,000,000 | 29,000,000 | -22,000,000 | 18,000,000 | -34,000,000 | -19,000,000 | 52,000,000 | -47,000,000 | -13,000,000 | -1,000,000 | ||
net cash from investing activities | -125,000,000 | -240,000,000 | -122,000,000 | -74,000,000 | -205,000,000 | 42,000,000 | -75,000,000 | -166,000,000 | -142,000,000 | -95,000,000 | -113,000,000 | -183,000,000 | -298,000,000 | -218,000,000 | -147,000,000 | ||
cash flows from financing activities: | |||||||||||||||||
debt repayments | -41,000,000 | -35,000,000 | -34,000,000 | -36,000,000 | -40,000,000 | -35,000,000 | -35,000,000 | -38,000,000 | -36,000,000 | -37,000,000 | -30,000,000 | -27,000,000 | -28,000,000 | -28,000,000 | |||
proceeds from borrowings under the revolving credit facility | |||||||||||||||||
proceeds from issuance of debt, net of debt issuance costs | |||||||||||||||||
common stock repurchases | -54,000,000 | -99,000,000 | -89,000,000 | -62,000,000 | -63,000,000 | ||||||||||||
common stock repurchases for tax withholdings | -1,000,000 | -4,000,000 | -22,000,000 | -67,000,000 | -13,000,000 | -8,000,000 | -17,000,000 | -7,000,000 | -7,000,000 | -5,000,000 | -7,000,000 | -4,000,000 | 0 | -13,000,000 | |||
other financing activities | 0 | 2,000,000 | 4,000,000 | -5,000,000 | 3,000,000 | 1,000,000 | -6,000,000 | 0 | 0 | -1,000,000 | |||||||
net cash from financing activities | 905,000,000 | -138,000,000 | -140,000,000 | -170,000,000 | -114,000,000 | -71,000,000 | -50,000,000 | -51,000,000 | -43,000,000 | -42,000,000 | -38,000,000 | -31,000,000 | -28,000,000 | -41,000,000 | 1,039,000,000 | ||
effect of exchange rate changes on cash, cash equivalents and restricted cash | -7,000,000 | -32,000,000 | -16,000,000 | 46,000,000 | 23,000,000 | -56,000,000 | 34,000,000 | -17,000,000 | 28,000,000 | -18,000,000 | -15,000,000 | 51,000,000 | -49,000,000 | -111,000,000 | -10,000,000 | ||
net change in cash, cash equivalents and restricted cash | 1,273,000,000 | 16,000,000 | -130,000,000 | -323,000,000 | 284,000,000 | 175,000,000 | 57,000,000 | -281,000,000 | 279,000,000 | -109,000,000 | -339,000,000 | 115,000,000 | 13,000,000 | -266,000,000 | 1,490,000,000 | ||
cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | 0 | 1,789,000,000 | 0 | 0 | 0 | 1,554,000,000 | 0 | 0 | 1,860,000,000 | ||||||
cash, cash equivalents and restricted cash at end of period | 1,274,000,000 | 16,000,000 | -130,000,000 | 1,466,000,000 | 284,000,000 | 175,000,000 | 57,000,000 | 1,273,000,000 | 279,000,000 | -109,000,000 | 1,521,000,000 | ||||||
supplemental data: | |||||||||||||||||
income taxes paid, net of refunds received | 23,000,000 | 36,000,000 | 25,000,000 | 67,000,000 | 26,000,000 | 34,000,000 | 35,000,000 | 54,000,000 | 52,000,000 | 23,000,000 | 65,000,000 | 72,000,000 | 29,000,000 | 8,000,000 | |||
interest paid on debt | 18,000,000 | 39,000,000 | 19,000,000 | 39,000,000 | 19,000,000 | 40,000,000 | 20,000,000 | 40,000,000 | 49,000,000 | 13,000,000 | 46,000,000 | 55,000,000 | -4,000,000 | 38,000,000 | |||
receivables | -69,000,000 | -40,000,000 | 46,000,000 | 112,000,000 | -16,000,000 | 30,000,000 | 163,000,000 | 97,000,000 | -163,000,000 | 53,000,000 | 176,000,000 | 249,000,000 | 222,000,000 | ||||
deferred costs | -362,000,000 | -316,000,000 | -1,381,000,000 | -489,000,000 | -421,000,000 | -489,000,000 | -363,000,000 | 2,104,000,000 | -324,000,000 | -281,000,000 | -418,000,000 | 2,133,000,000 | -325,000,000 | -369,000,000 | -369,000,000 | -2,760,000,000 | |
supplemental data | |||||||||||||||||
assets: | |||||||||||||||||
current assets: | |||||||||||||||||
cash and cash equivalents | |||||||||||||||||
restricted cash | |||||||||||||||||
accounts receivable | |||||||||||||||||
prepaid expenses and other current assets | |||||||||||||||||
total current assets | |||||||||||||||||
| |||||||||||||||||
property and equipment | |||||||||||||||||
operating right-of-use assets | |||||||||||||||||
goodwill | |||||||||||||||||
intangible assets | |||||||||||||||||
pension assets | |||||||||||||||||
other noncurrent assets | |||||||||||||||||
total assets | |||||||||||||||||
liabilities: | |||||||||||||||||
current liabilities: | |||||||||||||||||
value-added tax and income tax liabilities | |||||||||||||||||
current portion of long-term debt | |||||||||||||||||
accrued compensation and benefits | |||||||||||||||||
deferred income | |||||||||||||||||
operating lease liabilities | |||||||||||||||||
accrued contract costs | |||||||||||||||||
other accrued expenses and liabilities | |||||||||||||||||
total current liabilities | |||||||||||||||||
long-term debt | |||||||||||||||||
retirement and nonpension postretirement benefit obligations | |||||||||||||||||
other noncurrent liabilities | |||||||||||||||||
total liabilities | |||||||||||||||||
commitments and contingencies | |||||||||||||||||
equity: | |||||||||||||||||
stockholders’ equity | |||||||||||||||||
common stock, par value 0.01 per share, and additional paid-in capital | |||||||||||||||||
accumulated deficit | |||||||||||||||||
treasury stock, at cost | |||||||||||||||||
accumulated other comprehensive income | |||||||||||||||||
total stockholders’ equity before non-controlling interests | |||||||||||||||||
non-controlling interests | |||||||||||||||||
total equity | |||||||||||||||||
total liabilities and equity | |||||||||||||||||
goodwill impairment | |||||||||||||||||
net transfers (to) from parent | |||||||||||||||||
depreciation and amortization | |||||||||||||||||
accounts receivable (net of allowances of 32 at march 31, 2023, 44 at march 31, 2022, and 44 at december 31, 2021)* | |||||||||||||||||
accounts payable** | |||||||||||||||||
amortization of intangible assets | 11,000,000 | 11,000,000 | 14,000,000 | ||||||||||||||
depreciation of property and equipment | 232,000,000 | 221,000,000 | 228,000,000 | 295,000,000 | |||||||||||||
net transfers to parent | |||||||||||||||||
cash, cash equivalents and restricted cash at april 1 | 0 | 0 | 2,154,000,000 | ||||||||||||||
cash, cash equivalents and restricted cash at december 31 | |||||||||||||||||
net transfers from parent | |||||||||||||||||
cash, cash equivalents and restricted cash at september 30 | |||||||||||||||||
payments for property and equipment and capitalized software | -213,000,000 | ||||||||||||||||
cash, cash equivalents and restricted cash at june 30 | 1,888,000,000 | ||||||||||||||||
payments for property and equipment | -152,000,000 | ||||||||||||||||
cash, cash equivalents and restricted cash at january 1 | 0 | ||||||||||||||||
other assets | |||||||||||||||||
vat payable | |||||||||||||||||
short-term debt | |||||||||||||||||
other liabilities | |||||||||||||||||
net parent investment | |||||||||||||||||
total net parent investment | |||||||||||||||||
noncontrolling interests | |||||||||||||||||
amortization of deferred costs | |||||||||||||||||
amortization of intangibles | |||||||||||||||||
proceeds from new debt | |||||||||||||||||
payments to settle debt |