Even so, the numbers underneath the headline tell a more mixed story than the stock drop suggests, especially once you look at how fast Kyndryl’s cloud business is actually growing. But look past it, and the parts of Kyndryl tied most closely to cloud computing are pulling in the opposite direction. Revenue tied to hyperscalers like AWS, Microsoft Azure, and Google Cloud jumped 35% year-over-year, reaching $530 million in the quarter. CEO Martin Schroeter pointed to strong signings this quarter, especially in cloud consulting and hyperscaler partnerships, as evidence of “increasing demand for AI-led modernization solutions.” Kyndryl now projects full-year revenue between $14.8 billion and $15.1 billion, with adjusted pretax income landing somewhere between $600 million and $700 million.