Kyndryl Faces Securities Class Action Lawsuit Following 55% Share Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy KD?
Source: Globenewswire
- Stock Price Plunge: Kyndryl's shares dropped 55% on February 9, 2026, following the announcement of its inability to timely file its quarterly report, resulting in a loss of over $3 billion in market capitalization, indicating severe investor concern over internal control deficiencies.
- Internal Control Weaknesses: The company disclosed significant weaknesses in its internal controls, particularly regarding information communication and 'tone at the top,' which could lead to inaccuracies in financial reporting, thereby undermining investor confidence and future financial performance.
- Executive Departures: Kyndryl announced the departure of executives Wyshner and Sebold on February 5, 2026, along with the resignation of comptroller Khurana, further intensifying market skepticism regarding the company's governance and management stability.
- Legal Investigation: Hagens Berman is investigating whether Kyndryl intentionally misled investors, and if violations are confirmed, the company may face more severe legal repercussions and financial losses.
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Analyst Views on KD
Wall Street analysts forecast KD stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 11.340
Low
28.00
Averages
33.25
High
40.00
Current: 11.340
Low
28.00
Averages
33.25
High
40.00
About KD
Kyndryl Holdings, Inc. is a provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to customers in more than 60 countries. The Company designs, builds, manages and modernizes complex information systems around the world. Its segments include United States, Japan, Principal Markets and Strategic Markets. It offers services across domains, such as cloud services, core enterprise and zCloud services, applications, data and artificial intelligence (AI) services, digital workplace services, security and resiliency services and network and edge services. Its advisory and implementation services are branded as Kyndryl Consult. It provides end-to-end enterprise data services, including data transformation, data architecture and management, data governance and compliance and data migration. It provides comprehensive enterprise cybersecurity services for chief information security officers (CISOs) and chief risk officers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kyndryl's Q3 Results Fall Short of Expectations
- Disappointing Performance: Kyndryl's Q3 results for fiscal 2026 revealed adjusted earnings per share of $0.52 and sales of $3.86 billion, both falling short of analyst expectations of $0.60 and $3.91 billion, leading to a significant loss of investor confidence.
- Lowered Sales Targets: The company revised its full-year free cash flow forecast down from approximately $550 million to a range of $325 million to $375 million, indicating a substantial deterioration in business performance and eroding market confidence in future growth.
- Weak Revenue Growth: Although Kyndryl Consult achieved a 24% year-over-year sales increase in the quarter, overall revenue still missed expectations, highlighting increasing pressure on the company in a competitive market.
- Stock Price Plunge: Kyndryl's stock price plummeted 47.9% over the past week, while the S&P 500 and Nasdaq Composite declined by 1.4% and 2.1%, respectively, reflecting a pessimistic sentiment towards the company's future outlook.
See More
Kyndryl Expands CSR Commitment in India to Train 50,000 Students
- AI Skills Training Initiative: Kyndryl has announced a commitment to train 50,000 students and 30,000 youth in India, aiming to enhance AI skills through inclusive training, thereby supporting national digital and skilling priorities and fostering future talent development.
- Public Sector AI Readiness: Kyndryl will integrate its AI for Governance programs with the Government's Karmayogi iGOT platform, providing courses on AI fundamentals and cyber safety to help officials identify AI application opportunities and strengthen cyber resilience in public institutions.
- AI Education in Government Schools: Kyndryl will launch a foundational AI learning initiative in government schools in Varanasi and Ayodhya, aiming to provide age-appropriate AI education to 50,000 students and upskill 1,000 teachers over two years.
- Youth Empowerment Program: Kyndryl plans to train graduates to become AI change-makers, with an initiative to empower 30,000 youth annually across India over three years, supporting rural governance, agriculture, and livelihood development to foster sustainable AI ecosystems.
See More
Kyndryl Faces Securities Class Action Lawsuit Following 55% Share Drop
- Stock Price Plunge: Kyndryl's shares dropped 55% on February 9, 2026, following the announcement of its inability to timely file its quarterly report, resulting in a loss of over $3 billion in market capitalization, indicating severe investor concern over internal control deficiencies.
- Internal Control Weaknesses: The company disclosed significant weaknesses in its internal controls, particularly regarding information communication and 'tone at the top,' which could lead to inaccuracies in financial reporting, thereby undermining investor confidence and future financial performance.
- Executive Departures: Kyndryl announced the departure of executives Wyshner and Sebold on February 5, 2026, along with the resignation of comptroller Khurana, further intensifying market skepticism regarding the company's governance and management stability.
- Legal Investigation: Hagens Berman is investigating whether Kyndryl intentionally misled investors, and if violations are confirmed, the company may face more severe legal repercussions and financial losses.
See More
Kyndryl Faces Class Action Lawsuit Over Securities Violations
- Class Action Launched: Bronstein, Gewirtz & Grossman, LLC has initiated a class action lawsuit against Kyndryl Holdings, seeking compensation for investors who purchased securities between August 7, 2024, and February 9, 2026, highlighting serious concerns over the company's financial transparency.
- Misstatement Allegations: The complaint alleges that Kyndryl's financial statements during the class period were materially misstated and failed to adequately disclose issues with internal controls, potentially misleading investors regarding the company's financial health.
- Delayed Quarterly Report: Due to internal control deficiencies, Kyndryl will be unable to timely file its 10-Q report for the quarter ended December 31, 2025, which may further undermine investor confidence and negatively impact the company's stock price.
- Investor Rights Protection: The law firm operates on a contingency fee basis, emphasizing its expertise in securities fraud class actions and aiming to secure compensation for affected investors, thereby upholding market integrity.
See More
Kyndryl Expands CSR Commitment in India to Train 50,000 Students
- AI Skills Training Initiative: Kyndryl has announced a program to train 50,000 students and 30,000 youth in India, aimed at enhancing their AI skills to support national digital and skilling priorities and foster future talent development.
- Investment Commitment: This expansion of social impact programs is part of Kyndryl's $2.25 billion investment commitment announced in August 2025, reflecting the company's long-term dedication to India's digital growth and promoting societal advancement through capability-building.
- Government Collaboration: Kyndryl's discussions with Prime Minister Modi highlighted the importance of leveraging AI for government efficiency, showcasing the company's active contribution to public sector capacity-building and education while empowering underserved communities.
- Support for Digital Transformation: Kyndryl's initiatives focus not only on technical training but also on enhancing the cyber readiness of government officials and youth, driving India's future development with a focus on responsibility, resilience, and innovation in its digital transformation journey.
See More
Kyndryl Shares Plunge 47.9% Amid Disappointing Earnings Report
- Earnings Miss: Kyndryl's fiscal Q3 report revealed adjusted earnings per share of $0.52 and sales of $3.86 billion, both falling short of Wall Street's expectations of $0.60 and $3.91 billion, leading to a significant drop in investor confidence.
- Insufficient Sales Growth: Although Kyndryl Consult's sales grew by 24% year-over-year, overall revenue still missed expectations, indicating the company's weakened position in a competitive market and exacerbating investor disappointment.
- Guidance Downgrade: Kyndryl lowered its full-year free cash flow guidance to between $325 million and $375 million, down from a previous forecast of approximately $550 million, while also projecting a 2% to 3% decline in sales, highlighting a substantial deterioration in business performance.
- Severe Market Reaction: Following the earnings report, Kyndryl's stock plummeted by 47.9% over the week, contrasting sharply with the S&P 500's 1.4% decline, reflecting extreme pessimism regarding Kyndryl's future prospects.
See More
Kyndryl's Q3 Results Fall Short of Expectations
- Disappointing Performance: Kyndryl's Q3 results for fiscal 2026 revealed adjusted earnings per share of $0.52 and sales of $3.86 billion, both falling short of analyst expectations of $0.60 and $3.91 billion, leading to a significant loss of investor confidence.
- Lowered Sales Targets: The company revised its full-year free cash flow forecast down from approximately $550 million to a range of $325 million to $375 million, indicating a substantial deterioration in business performance and eroding market confidence in future growth.
- Weak Revenue Growth: Although Kyndryl Consult achieved a 24% year-over-year sales increase in the quarter, overall revenue still missed expectations, highlighting increasing pressure on the company in a competitive market.
- Stock Price Plunge: Kyndryl's stock price plummeted 47.9% over the past week, while the S&P 500 and Nasdaq Composite declined by 1.4% and 2.1%, respectively, reflecting a pessimistic sentiment towards the company's future outlook.
See More
Kyndryl Expands CSR Commitment in India to Train 50,000 Students
- AI Skills Training Initiative: Kyndryl has announced a commitment to train 50,000 students and 30,000 youth in India, aiming to enhance AI skills through inclusive training, thereby supporting national digital and skilling priorities and fostering future talent development.
- Public Sector AI Readiness: Kyndryl will integrate its AI for Governance programs with the Government's Karmayogi iGOT platform, providing courses on AI fundamentals and cyber safety to help officials identify AI application opportunities and strengthen cyber resilience in public institutions.
- AI Education in Government Schools: Kyndryl will launch a foundational AI learning initiative in government schools in Varanasi and Ayodhya, aiming to provide age-appropriate AI education to 50,000 students and upskill 1,000 teachers over two years.
- Youth Empowerment Program: Kyndryl plans to train graduates to become AI change-makers, with an initiative to empower 30,000 youth annually across India over three years, supporting rural governance, agriculture, and livelihood development to foster sustainable AI ecosystems.
See More
Kyndryl Faces Securities Class Action Lawsuit Following 55% Share Drop
- Stock Price Plunge: Kyndryl's shares dropped 55% on February 9, 2026, following the announcement of its inability to timely file its quarterly report, resulting in a loss of over $3 billion in market capitalization, indicating severe investor concern over internal control deficiencies.
- Internal Control Weaknesses: The company disclosed significant weaknesses in its internal controls, particularly regarding information communication and 'tone at the top,' which could lead to inaccuracies in financial reporting, thereby undermining investor confidence and future financial performance.
- Executive Departures: Kyndryl announced the departure of executives Wyshner and Sebold on February 5, 2026, along with the resignation of comptroller Khurana, further intensifying market skepticism regarding the company's governance and management stability.
- Legal Investigation: Hagens Berman is investigating whether Kyndryl intentionally misled investors, and if violations are confirmed, the company may face more severe legal repercussions and financial losses.
See More
Kyndryl Faces Class Action Lawsuit Over Securities Violations
- Class Action Launched: Bronstein, Gewirtz & Grossman, LLC has initiated a class action lawsuit against Kyndryl Holdings, seeking compensation for investors who purchased securities between August 7, 2024, and February 9, 2026, highlighting serious concerns over the company's financial transparency.
- Misstatement Allegations: The complaint alleges that Kyndryl's financial statements during the class period were materially misstated and failed to adequately disclose issues with internal controls, potentially misleading investors regarding the company's financial health.
- Delayed Quarterly Report: Due to internal control deficiencies, Kyndryl will be unable to timely file its 10-Q report for the quarter ended December 31, 2025, which may further undermine investor confidence and negatively impact the company's stock price.
- Investor Rights Protection: The law firm operates on a contingency fee basis, emphasizing its expertise in securities fraud class actions and aiming to secure compensation for affected investors, thereby upholding market integrity.
See More
Kyndryl Expands CSR Commitment in India to Train 50,000 Students
- AI Skills Training Initiative: Kyndryl has announced a program to train 50,000 students and 30,000 youth in India, aimed at enhancing their AI skills to support national digital and skilling priorities and foster future talent development.
- Investment Commitment: This expansion of social impact programs is part of Kyndryl's $2.25 billion investment commitment announced in August 2025, reflecting the company's long-term dedication to India's digital growth and promoting societal advancement through capability-building.
- Government Collaboration: Kyndryl's discussions with Prime Minister Modi highlighted the importance of leveraging AI for government efficiency, showcasing the company's active contribution to public sector capacity-building and education while empowering underserved communities.
- Support for Digital Transformation: Kyndryl's initiatives focus not only on technical training but also on enhancing the cyber readiness of government officials and youth, driving India's future development with a focus on responsibility, resilience, and innovation in its digital transformation journey.
See More
Kyndryl Shares Plunge 47.9% Amid Disappointing Earnings Report
- Earnings Miss: Kyndryl's fiscal Q3 report revealed adjusted earnings per share of $0.52 and sales of $3.86 billion, both falling short of Wall Street's expectations of $0.60 and $3.91 billion, leading to a significant drop in investor confidence.
- Insufficient Sales Growth: Although Kyndryl Consult's sales grew by 24% year-over-year, overall revenue still missed expectations, indicating the company's weakened position in a competitive market and exacerbating investor disappointment.
- Guidance Downgrade: Kyndryl lowered its full-year free cash flow guidance to between $325 million and $375 million, down from a previous forecast of approximately $550 million, while also projecting a 2% to 3% decline in sales, highlighting a substantial deterioration in business performance.
- Severe Market Reaction: Following the earnings report, Kyndryl's stock plummeted by 47.9% over the week, contrasting sharply with the S&P 500's 1.4% decline, reflecting extreme pessimism regarding Kyndryl's future prospects.
See More
