Kyndryl announced a new suite of advisory and implementation services that leverage its Agentic AI Framework, positioning the company to help clients scale agentic AI across workforce and customer‑experience functions. The launch is a key element of the company’s “run and transform” strategy, which seeks to move from low‑margin infrastructure work toward higher‑margin, value‑added consulting engagements.
The new services focus on change management, reskilling, and process redesign, guiding organizations through the people‑AI collaboration needed to embed autonomous agents into everyday workflows. By providing end‑to‑end guidance, Kyndryl aims to accelerate AI adoption, improve operational efficiency, and create new revenue opportunities beyond traditional infrastructure support.
Kyndryl’s Q2 FY2026 results—revenue of $3.7 billion, down 1% year‑over‑year, and an adjusted EPS of $0.38 versus the consensus of $0.33—illustrate the company’s ability to maintain profitability while shifting its mix. The adjusted EBITDA margin of 18% represents a 130‑basis‑point increase from the prior year, driven largely by the higher‑margin consulting segment, which grew 28% YoY. The new AI services are expected to further strengthen this margin expansion by attracting higher‑priced, long‑term engagements.
The launch positions Kyndryl against competitors such as Accenture and IBM, where AI‑driven workforce transformation is a growing market. Kyndryl’s deep expertise in IBM Z and Power, combined with its AI‑powered Bridge platform, gives it a differentiated offering. The company’s recent consulting revenue growth and the 65% year‑over‑year increase in hyperscaler deals underscore the market’s appetite for AI services and reinforce Kyndryl’s competitive stance.
Management emphasized the strategic importance of the new services. Senior Vice President Ismail Amla said, “Agentic AI will rapidly reshape job roles, ways of working and how enterprises are organized – and equally change how they engage their customers. Organizations that move fast to bring their workforces and customers along the AI journey, through intentional change management and engaging experience between people and AI agents, will have the competitive advantage and gain the most from their AI investments.” CEO Martin Schroeter added, “Our second‑quarter performance reflects the momentum we’re building across key growth priorities – Kyndryl Consult, alliances with hyperscalers and other leading technology providers, and our innovative services in AI, cloud and security. We expect activity to strengthen in the second half of fiscal 2026, supported by our pipeline and the constructive discussions we’re having with new and existing customers.”
The combination of an EPS beat, a 130‑basis‑point margin lift, and strong consulting growth signals that Kyndryl’s shift toward AI‑centric services is delivering tangible financial benefits. While revenue declined slightly, the company’s cost discipline and higher‑margin mix have offset top‑line pressure, and the expanded AI portfolio is positioned to capture a larger share of the rapidly growing workforce‑transformation market. Headwinds remain in the form of revenue decline and the need for extensive reskilling, but the company’s focus on people‑AI collaboration and its growing pipeline of AI projects provide a clear path to sustained profitability.
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