Kyndryl Shares Plunge 39% Due to Delayed Financial Filings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy KD?
Source: seekingalpha
- Delayed Financial Reports: Kyndryl announced a delay in submitting certain regulatory filings, including the 10-Q, leading to a premarket plunge of approximately 39% in its stock price, reflecting market concerns over financial transparency and potentially undermining investor confidence.
- Executive Changes: The company appointed Harsh Chugh as interim CFO and Bhavna Doegar as interim corporate controller, while David Wyshner and Edward Sebold departed immediately, creating uncertainty in the company's strategic direction and operational stability.
- Financial Review: Kyndryl is reviewing its cash management practices and related disclosures, anticipating reporting material weaknesses in internal controls in the upcoming quarterly report, which could impact future financial reporting and compliance, increasing regulatory risks.
- Performance Overview: Despite a 3% year-over-year revenue growth to $3.86 billion in Q3, the results missed market expectations, with adjusted EPS rising about 2% to $0.52, indicating pressure in a competitive market and challenges ahead in its fiscal outlook.
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Analyst Views on KD
Wall Street analysts forecast KD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KD is 33.25 USD with a low forecast of 28.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 23.490
Low
28.00
Averages
33.25
High
40.00
Current: 23.490
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 Holdings Under Investigation as Shares Plunge Over 50%
- Stock Plunge: Kyndryl Holdings experienced a dramatic over 50% drop in share price during intraday trading on February 9, 2026, primarily due to the disclosure of an internal accounting review and a delay in filing its quarterly report, which severely undermined investor confidence.
- Executive Departure: The resignation of Chief Financial Officer David Wyshner heightened concerns regarding the company's financial health, leading investors to question the transparency and accuracy of future financial reports.
- SEC Investigation: Kyndryl is facing document requests from the SEC to review cash management practices and internal controls, and it anticipates reporting material weaknesses in internal control over financial reporting for FY25 and the first three quarters of FY26, indicating significant operational risks.
- Potential Legal Action: Block & Leviton is investigating whether Kyndryl has committed securities law violations and may file a lawsuit on behalf of investors seeking to recover losses, reflecting serious concerns about the company's financial integrity.
See More
Kyndryl Reports Sharp Earnings Decline in Q3, Shares Plunge 52%
- Earnings Decline: Kyndryl Holdings, Inc. reported a significant drop in Q3 earnings, totaling $57 million or $0.25 per share, compared to $215 million or $0.89 per share last year, indicating a severe deterioration in profitability.
- Stock Price Plunge: Following the earnings report, Kyndryl's shares tumbled approximately 52% in Monday trading, currently priced at $11.09, recovering slightly from an opening price of $10.11, yet remaining well below the 52-week range of $10.11 to $44.20.
- Revenue Growth: Despite the sharp decline in net earnings, Kyndryl's Q3 revenue increased by 3.1% to $3.859 billion from $3.744 billion last year, suggesting that the company still possesses some growth potential in terms of revenue.
- Market Reaction: The poor financial performance has severely shaken investor confidence in Kyndryl, and the stock's volatility may impact the company's future financing capabilities and competitive position in the market.
See More
Kyndryl Shares Plunge 39% Due to Delayed Financial Filings
- Delayed Financial Reports: Kyndryl announced a delay in submitting certain regulatory filings, including the 10-Q, leading to a premarket plunge of approximately 39% in its stock price, reflecting market concerns over financial transparency and potentially undermining investor confidence.
- Executive Changes: The company appointed Harsh Chugh as interim CFO and Bhavna Doegar as interim corporate controller, while David Wyshner and Edward Sebold departed immediately, creating uncertainty in the company's strategic direction and operational stability.
- Financial Review: Kyndryl is reviewing its cash management practices and related disclosures, anticipating reporting material weaknesses in internal controls in the upcoming quarterly report, which could impact future financial reporting and compliance, increasing regulatory risks.
- Performance Overview: Despite a 3% year-over-year revenue growth to $3.86 billion in Q3, the results missed market expectations, with adjusted EPS rising about 2% to $0.52, indicating pressure in a competitive market and challenges ahead in its fiscal outlook.
See More
Kyndryl Delays Quarterly Report and Announces Executive Changes
- Report Delay: Kyndryl announced a delay in filing its quarterly report, citing anticipated material weaknesses in internal financial reporting controls for multiple periods, including the first two quarters of fiscal 2026, leading to a 38% drop in premarket shares.
- Executive Changes: The company’s finance chief David Wyshner and global controller Vineet Khurana stepped down immediately, with Harsh Chugh appointed as interim CFO and Bhavna Doegar as interim corporate controller, with Chugh bringing extensive management experience from his previous role as COO.
- Audit Committee Review: Kyndryl's audit committee has begun reviewing cash management practices and related disclosures following voluntary document requests from the SEC's enforcement division, which may further impact the company's financial transparency and market trust.
- Market Reaction: The delay in the quarterly report and executive changes have shaken investor confidence, resulting in a significant stock price decline, reflecting concerns over corporate governance and financial health that could affect future financing and business growth.
See More
Kyndryl Reports Decline in Q3 Earnings
- Earnings Decline: Kyndryl Holdings, Inc. reported a net income of $57 million for Q3, translating to $0.25 per share, which marks a significant drop from last year's $215 million and $0.89 per share, indicating a notable weakening in the company's profitability.
- Adjusted Earnings: Excluding certain items, Kyndryl reported adjusted earnings of $122 million or $0.52 per share, which, while lower than last year, still reflects a degree of profitability amidst challenging conditions.
- Revenue Growth: The company's revenue increased by 3.1% year-over-year to $3.859 billion, compared to $3.744 billion last year, suggesting some growth potential despite the overall market challenges.
- Market Reaction: Despite the revenue growth, the significant decline in earnings may negatively impact investor confidence, leading to stock price volatility and influencing future investment decisions.
See More
Kyndryl Shares Plummet 40% Following Earnings Report; CFO Departing During Accounting Investigation.
- CFO Departure: Kyndryl Holdings' chief financial officer is leaving the company amid an ongoing accounting review.
- Earnings Report: The company reported weaker-than-expected earnings, contributing to a decline in its stock price.
See More
Kyndryl Holdings Under Investigation as Shares Plunge Over 50%
- Stock Plunge: Kyndryl Holdings experienced a dramatic over 50% drop in share price during intraday trading on February 9, 2026, primarily due to the disclosure of an internal accounting review and a delay in filing its quarterly report, which severely undermined investor confidence.
- Executive Departure: The resignation of Chief Financial Officer David Wyshner heightened concerns regarding the company's financial health, leading investors to question the transparency and accuracy of future financial reports.
- SEC Investigation: Kyndryl is facing document requests from the SEC to review cash management practices and internal controls, and it anticipates reporting material weaknesses in internal control over financial reporting for FY25 and the first three quarters of FY26, indicating significant operational risks.
- Potential Legal Action: Block & Leviton is investigating whether Kyndryl has committed securities law violations and may file a lawsuit on behalf of investors seeking to recover losses, reflecting serious concerns about the company's financial integrity.
See More
Kyndryl Reports Sharp Earnings Decline in Q3, Shares Plunge 52%
- Earnings Decline: Kyndryl Holdings, Inc. reported a significant drop in Q3 earnings, totaling $57 million or $0.25 per share, compared to $215 million or $0.89 per share last year, indicating a severe deterioration in profitability.
- Stock Price Plunge: Following the earnings report, Kyndryl's shares tumbled approximately 52% in Monday trading, currently priced at $11.09, recovering slightly from an opening price of $10.11, yet remaining well below the 52-week range of $10.11 to $44.20.
- Revenue Growth: Despite the sharp decline in net earnings, Kyndryl's Q3 revenue increased by 3.1% to $3.859 billion from $3.744 billion last year, suggesting that the company still possesses some growth potential in terms of revenue.
- Market Reaction: The poor financial performance has severely shaken investor confidence in Kyndryl, and the stock's volatility may impact the company's future financing capabilities and competitive position in the market.
See More
Kyndryl Shares Plunge 39% Due to Delayed Financial Filings
- Delayed Financial Reports: Kyndryl announced a delay in submitting certain regulatory filings, including the 10-Q, leading to a premarket plunge of approximately 39% in its stock price, reflecting market concerns over financial transparency and potentially undermining investor confidence.
- Executive Changes: The company appointed Harsh Chugh as interim CFO and Bhavna Doegar as interim corporate controller, while David Wyshner and Edward Sebold departed immediately, creating uncertainty in the company's strategic direction and operational stability.
- Financial Review: Kyndryl is reviewing its cash management practices and related disclosures, anticipating reporting material weaknesses in internal controls in the upcoming quarterly report, which could impact future financial reporting and compliance, increasing regulatory risks.
- Performance Overview: Despite a 3% year-over-year revenue growth to $3.86 billion in Q3, the results missed market expectations, with adjusted EPS rising about 2% to $0.52, indicating pressure in a competitive market and challenges ahead in its fiscal outlook.
See More
Kyndryl Delays Quarterly Report and Announces Executive Changes
- Report Delay: Kyndryl announced a delay in filing its quarterly report, citing anticipated material weaknesses in internal financial reporting controls for multiple periods, including the first two quarters of fiscal 2026, leading to a 38% drop in premarket shares.
- Executive Changes: The company’s finance chief David Wyshner and global controller Vineet Khurana stepped down immediately, with Harsh Chugh appointed as interim CFO and Bhavna Doegar as interim corporate controller, with Chugh bringing extensive management experience from his previous role as COO.
- Audit Committee Review: Kyndryl's audit committee has begun reviewing cash management practices and related disclosures following voluntary document requests from the SEC's enforcement division, which may further impact the company's financial transparency and market trust.
- Market Reaction: The delay in the quarterly report and executive changes have shaken investor confidence, resulting in a significant stock price decline, reflecting concerns over corporate governance and financial health that could affect future financing and business growth.
See More
Kyndryl Reports Decline in Q3 Earnings
- Earnings Decline: Kyndryl Holdings, Inc. reported a net income of $57 million for Q3, translating to $0.25 per share, which marks a significant drop from last year's $215 million and $0.89 per share, indicating a notable weakening in the company's profitability.
- Adjusted Earnings: Excluding certain items, Kyndryl reported adjusted earnings of $122 million or $0.52 per share, which, while lower than last year, still reflects a degree of profitability amidst challenging conditions.
- Revenue Growth: The company's revenue increased by 3.1% year-over-year to $3.859 billion, compared to $3.744 billion last year, suggesting some growth potential despite the overall market challenges.
- Market Reaction: Despite the revenue growth, the significant decline in earnings may negatively impact investor confidence, leading to stock price volatility and influencing future investment decisions.
See More
Kyndryl Shares Plummet 40% Following Earnings Report; CFO Departing During Accounting Investigation.
- CFO Departure: Kyndryl Holdings' chief financial officer is leaving the company amid an ongoing accounting review.
- Earnings Report: The company reported weaker-than-expected earnings, contributing to a decline in its stock price.
See More
