Kyndryl Holdings, Inc. Earnings Per Share Disclosure
NOTE 6. EARNINGS PER SHARE
We did not declare any stock dividends in the periods presented. The following table provides the computation of basic and diluted earnings per share of common stock for the years ended March 31, 2026, 2025 and 2024.
Year Ended March 31, | |||||||||
(In millions, except per share amounts) | 2026 | 2025 | 2024 | ||||||
Net income (loss) on which basic and diluted earnings per share is calculated | $ | 198 | $ | 252 | $ | (340) | |||
Number of shares on which basic earnings (loss) per share is calculated | 228.3 | 231.5 | 229.2 | ||||||
Dilutive effect of stock options and equity awards | 5.5 | 7.7 | — | ||||||
Number of shares on which diluted earnings (loss) per share is calculated | 233.8 | 239.1 | 229.2 | ||||||
Basic earnings (loss) per share | $ | 0.87 | $ | 1.09 | $ | (1.48) | |||
Diluted earnings (loss) per share |
| 0.85 |
| 1.05 |
| (1.48) | |||
For the year ended March 31, 2024, the number of shares on which basic and diluted earnings (loss) per share is calculated was the same as a result of the net loss incurred in the period. The following securities were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive:
Year Ended March 31, | ||||||
(In millions) | 2026 | 2025 | 2024 | |||
Nonvested restricted stock units | 2.4 | 0.6 | 8.8 | |||
Nonvested performance-conditioned stock units | 2.9 | 4.2 | 3.0 | |||
Nonvested market-conditioned stock units | 0.2 | 0.7 | 2.7 | |||
Stock options issued and outstanding | 0.7 | — | 3.6 | |||
Total | 6.2 | 5.5 | 18.1 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 29, 2026 | Showing above |
| 2025 | May 30, 2025 | |
| 2024 | May 30, 2024 | |
| 2023 | May 26, 2023 | |
| 2021 | Mar 10, 2022 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.