Kyndryl Shares Plunge 47.9% Amid Disappointing Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy KD?
Source: Fool
- 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.
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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 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 Stock Plummets 47.9% Amid Disappointing Earnings
- Earnings Miss: Kyndryl's Q3 fiscal 2026 report 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.
- Weak Sales Growth: Although Kyndryl Consult saw a 24% year-over-year sales increase, overall revenue still failed to meet expectations, indicating pressure in market competition that could affect future market share.
- Guidance Downgrade: The company revised its full-year free cash flow forecast down to between $325 million and $375 million, significantly lower than the previous $550 million estimate, while projecting a sales decline of 2% to 3%, indicating a trend of deteriorating performance.
- Investor Confidence Shaken: Following a 47.9% stock price drop over the past week, compared to a mere 1.4% decline in the S&P 500, the market sentiment reflects extreme pessimism regarding Kyndryl's future performance.
See More
Kyndryl Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: Bleichmar Fonti & Auld LLP has announced a class action lawsuit against Kyndryl Holdings and certain executives for securities fraud, reflecting significant investor concerns regarding the company's financial transparency following substantial stock drops.
- Stock Price Plunge: On February 9, 2026, Kyndryl announced a delay in releasing its fiscal Q3 2026 financial statement, resulting in a more than 52% drop in stock price during trading that day, indicating a collapse of market confidence in its cash management practices.
- Legal Basis: The lawsuit is based on Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, alleging that Kyndryl made significant misrepresentations regarding the effectiveness of its internal controls over financial reporting and its adjusted free cash flow metric, which could impact investor decisions.
- Investor Action: Investors are encouraged to apply to lead the case by April 13, 2026, highlighting a strong focus on corporate governance and financial compliance, which may trigger broader legal and market repercussions.
See More
Kyndryl Holdings Faces Investor Lawsuit Over Misleading Statements
- Lawsuit Background: On February 11, 2026, a lawsuit was filed against Kyndryl Holdings, Inc. by an investor alleging that the company made materially false statements in its financial reports from August 7, 2025, to February 9, 2026, resulting in losses exceeding $100,000.
- Financial Reporting Issues: The plaintiff claims that Kyndryl failed to disclose significant internal control deficiencies and was unable to timely file its Quarterly Report for the quarter ending December 31, 2025, which severely undermined operational transparency and investor confidence.
- Investor Action Required: Affected Kyndryl investors must act by April 13, 2026, to protect their legal rights, with the Shareholders Foundation offering support and guidance to help investors understand their options.
- Legal Service Overview: The Shareholders Foundation is a professional portfolio legal monitoring service that provides information on securities class actions, settlements, and other legal matters, aiming to safeguard investor rights, although it is not a law firm.
See More
Class Action Lawsuit Filed Against Kyndryl Holdings, Inc.
- Class Action Initiation: Rosen Law Firm has filed a class action lawsuit against Kyndryl Holdings, Inc. for securities purchasers between August 7, 2024, and February 9, 2026, indicating potential financial losses for investors.
- Allegations of Financial Misstatements: The lawsuit alleges that Kyndryl's financial statements during the class period were materially misstated and that the company lacked adequate internal controls, leading to an inability to timely file its Quarterly Report for December 31, 2025, which undermines investor confidence.
- Compensation Mechanism: Investors participating in the lawsuit may receive compensation without any out-of-pocket costs, highlighting the contingency fee arrangement offered by Rosen Law Firm as a protective measure for investors.
- Law Firm Background: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and influence in such cases.
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 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 Stock Plummets 47.9% Amid Disappointing Earnings
- Earnings Miss: Kyndryl's Q3 fiscal 2026 report 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.
- Weak Sales Growth: Although Kyndryl Consult saw a 24% year-over-year sales increase, overall revenue still failed to meet expectations, indicating pressure in market competition that could affect future market share.
- Guidance Downgrade: The company revised its full-year free cash flow forecast down to between $325 million and $375 million, significantly lower than the previous $550 million estimate, while projecting a sales decline of 2% to 3%, indicating a trend of deteriorating performance.
- Investor Confidence Shaken: Following a 47.9% stock price drop over the past week, compared to a mere 1.4% decline in the S&P 500, the market sentiment reflects extreme pessimism regarding Kyndryl's future performance.
See More
Kyndryl Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: Bleichmar Fonti & Auld LLP has announced a class action lawsuit against Kyndryl Holdings and certain executives for securities fraud, reflecting significant investor concerns regarding the company's financial transparency following substantial stock drops.
- Stock Price Plunge: On February 9, 2026, Kyndryl announced a delay in releasing its fiscal Q3 2026 financial statement, resulting in a more than 52% drop in stock price during trading that day, indicating a collapse of market confidence in its cash management practices.
- Legal Basis: The lawsuit is based on Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, alleging that Kyndryl made significant misrepresentations regarding the effectiveness of its internal controls over financial reporting and its adjusted free cash flow metric, which could impact investor decisions.
- Investor Action: Investors are encouraged to apply to lead the case by April 13, 2026, highlighting a strong focus on corporate governance and financial compliance, which may trigger broader legal and market repercussions.
See More
Kyndryl Holdings Faces Investor Lawsuit Over Misleading Statements
- Lawsuit Background: On February 11, 2026, a lawsuit was filed against Kyndryl Holdings, Inc. by an investor alleging that the company made materially false statements in its financial reports from August 7, 2025, to February 9, 2026, resulting in losses exceeding $100,000.
- Financial Reporting Issues: The plaintiff claims that Kyndryl failed to disclose significant internal control deficiencies and was unable to timely file its Quarterly Report for the quarter ending December 31, 2025, which severely undermined operational transparency and investor confidence.
- Investor Action Required: Affected Kyndryl investors must act by April 13, 2026, to protect their legal rights, with the Shareholders Foundation offering support and guidance to help investors understand their options.
- Legal Service Overview: The Shareholders Foundation is a professional portfolio legal monitoring service that provides information on securities class actions, settlements, and other legal matters, aiming to safeguard investor rights, although it is not a law firm.
See More
Class Action Lawsuit Filed Against Kyndryl Holdings, Inc.
- Class Action Initiation: Rosen Law Firm has filed a class action lawsuit against Kyndryl Holdings, Inc. for securities purchasers between August 7, 2024, and February 9, 2026, indicating potential financial losses for investors.
- Allegations of Financial Misstatements: The lawsuit alleges that Kyndryl's financial statements during the class period were materially misstated and that the company lacked adequate internal controls, leading to an inability to timely file its Quarterly Report for December 31, 2025, which undermines investor confidence.
- Compensation Mechanism: Investors participating in the lawsuit may receive compensation without any out-of-pocket costs, highlighting the contingency fee arrangement offered by Rosen Law Firm as a protective measure for investors.
- Law Firm Background: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and influence in such cases.
See More
