Kyndryl reported Q3 revenue of $3.9 billion, up 3% year-over-year. While their consulting arm grew 20% and hyperscaler revenue jumped 58%, the overall outlook for fiscal 2026 was revised downward. They cut their free cash flow guidance significantly, dropping it from $550 million to a range of $325-$375 million. Management cited a few reasons for the miss, including longer sales cycles due to AI complexity, headwinds from their IBM partnership, and higher labor costs because employee attrition slowed down unexpectedly. Despite the near-term issues, they maintained their fiscal 2028 targets.