Kyndryl has extended its partnership with Banque Internationale à Luxembourg (BIL) to accelerate the bank’s IT modernization program, covering the entire IT landscape from applications to infrastructure. The extension focuses on cloud adoption, deployment of agentic AI, and enhancement of cyber resilience, building on a relationship that began in 2013.
The deal positions Kyndryl as BIL’s integrated partner for emerging technologies. Kyndryl will deploy its AI‑powered Bridge platform to automate operations, improve security, and reduce costs, while expanding its global AI Lab network into Luxembourg to support local innovation initiatives.
For Kyndryl, the partnership strengthens its foothold in the European financial services sector, a key growth area for the company. BIL’s confidence in Kyndryl’s run‑and‑transform model signals potential for additional banking clients in the region.
Kyndryl’s recent financial performance shows strong momentum. In Q1 fiscal 2026, revenue reached $3.74 billion, matching Q1 fiscal 2025, but net income rose to $56 million from $11 million, and adjusted EBITDA climbed to $647 million from $556 million. The Consult segment grew 30% year‑over‑year, and hyperscaler‑related revenue increased significantly. Management highlighted the company’s three‑As initiatives—Alliances, Advanced Delivery, and Accounts—as key drivers of profitability and margin expansion.
The partnership aligns with Kyndryl’s strategy to monetize its AI platform and expand its global AI Lab network. The AI Lab expansion in Luxembourg will support local innovation and provide a base for future AI‑driven services across the region.
BIL has been modernizing its IT infrastructure, having replaced a 30‑year‑old legacy system with Temenos’ core banking and payments solutions in May 2024. The new partnership will accelerate cloud adoption and deploy agentic AI to enhance customer experience and operational efficiency.
Kyndryl reaffirmed its fiscal 2026 outlook, projecting adjusted pretax income of at least $725 million, reflecting confidence in continued growth of its consulting and hyperscaler segments and the expected impact of new partnerships such as BIL.
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