Kyndryl Shares Plunge 54.5% After Disappointing Q3 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy KD?
Source: Fool
- Disappointing Earnings: Kyndryl reported $3.9 billion in revenue for Q3, translating to a net income of only $57 million and an adjusted profit of $0.52 per share, which, despite slight year-over-year growth, fell short of expectations, resulting in a staggering 54.5% drop in stock price.
- Lowered Financial Guidance: The company has revised its revenue forecast for the current fiscal year to be 2% to 3% lower than last year, anticipating free cash flow between $325 million and $375 million, a significant decrease from the previous expectation of $550 million, indicating increasing financial pressure.
- Unexpected CFO Departure: The sudden resignation of CFO David Wyshner has alarmed investors, compounded by the announcement of a delay in filing the quarterly 10-Q report with the SEC due to a review of cash management practices and internal controls, which may reveal material weaknesses.
- Investor Reaction: Despite the stock being priced at only three times the anticipated per-share profit, investor concerns over potential inaccuracies in past and current financial reports have led to heightened volatility, making it advisable for investors to approach with caution as stability may be elusive in the near term.
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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 Reports Adjusted EPS of USD 0.52 for Q3
- Market Overview: The Kyndryl stock has shown a slight adjustment, with a current price of $0.52.
- Financial Performance: The company is navigating through financial challenges, reflected in its stock performance.
- Investor Sentiment: There is cautious optimism among investors regarding Kyndryl's future prospects.
- Industry Context: The broader market conditions are influencing Kyndryl's stock movements and overall performance.
See More
Surge in Options Trading Volume for Datadog and Teradata
- Datadog Options Volume: Datadog Inc saw options trading volume of 62,594 contracts, equating to approximately 6.3 million shares, which represents about 96.4% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High-Frequency Trading Insight: Notably, the $105 strike put option expiring on February 13, 2026, has seen 6,809 contracts traded today, representing around 680,900 underlying shares, suggesting an increased bearish sentiment among investors regarding the stock's price trajectory.
- Teradata Options Activity: Teradata Corp recorded an options trading volume of 12,332 contracts, equivalent to approximately 1.2 million shares, which accounts for 92.4% of its average daily trading volume over the past month, reflecting a vibrant trading atmosphere surrounding its stock.
- Bullish Call Option Trend: The $30 strike call option expiring on February 20, 2026, has seen 6,008 contracts traded today, representing about 600,800 shares, indicating a bullish outlook among investors for Teradata's future price movements.
See More
Kyndryl Holdings Under Investigation for Possible Securities Law Violations
- Executive Departures: On February 9, 2026, Kyndryl announced the immediate departure of its CFO and General Counsel, significantly undermining market confidence in the company's governance and potentially affecting investor trust in its future prospects.
- Internal Control Review: The company is reviewing its cash management practices and the effectiveness of its internal controls over financial reporting, with expectations to report material weaknesses that could lead to inaccuracies in future financial statements, further impacting shareholder interests.
- Stock Price Plunge: Following the announcement, Kyndryl's stock price fell as much as 54% in pre-market trading on February 9, 2026, resulting in substantial financial losses for investors and reflecting serious concerns about the company's financial health.
- SEC Investigation Impact: Kyndryl has received voluntary document requests from the SEC, indicating potential broader legal and financial risks for the company, prompting investors to closely monitor developments for potential legal claims opportunities.
See More
Kyndryl Shares Plunge 57% Following SEC Investigation Announcement
- Delayed Financial Reporting: Kyndryl Holdings announced it would not timely file its quarterly report for the period ending December 31, 2025, resulting in a nearly 57% drop in share price on February 9, 2026, erasing over $3 billion in market capitalization and severely impacting investor confidence.
- Executive Departures: The immediate departure of CFO David Wyshner and General Counsel Edward Sebold on February 5, 2026, has heightened concerns regarding the company's internal controls and financial transparency, potentially affecting its future financing capabilities.
- SEC Investigation Initiated: Kyndryl's Audit Committee is reviewing its cash management practices and related disclosures, having received document requests from the SEC, which may lead to increased regulatory scrutiny and potential legal liabilities for the company.
- Investor Rights Protection: Hagens Berman law firm has launched an investigation to assess whether Kyndryl misled investors, urging those who suffered significant losses to contact the firm, reflecting heightened market concerns over corporate governance and transparency.
See More
Kyndryl Under Investigation for Potential Securities Law Violations
- Investigation Reasons: Bleichmar Fonti & Auld LLP is investigating Kyndryl Holdings for potential violations of federal securities laws due to misrepresentation of cash management practices, particularly concerning the effectiveness of financial reporting controls for FY2025 and the first three quarters of FY2026.
- Delayed Financial Report: On February 9, 2026, Kyndryl announced a delay in releasing its fiscal Q3 2026 financial statement pending an accounting review following document requests from the SEC, which triggered significant market reactions.
- Stock Price Plunge: Following this announcement, Kyndryl's stock price dropped over 52% during trading on February 9, 2026, indicating severe investor concerns regarding the company's financial transparency.
- Executive Departures: The company also announced the immediate departures of its CFO and General Counsel, further intensifying market fears about corporate governance and financial health.
See More
Kyndryl Shares Plunge 54.5% After Disappointing Q3 Results
- Disappointing Earnings: Kyndryl reported $3.9 billion in revenue for Q3, translating to a net income of only $57 million and an adjusted profit of $0.52 per share, which, despite slight year-over-year growth, fell short of expectations, resulting in a staggering 54.5% drop in stock price.
- Lowered Financial Guidance: The company has revised its revenue forecast for the current fiscal year to be 2% to 3% lower than last year, anticipating free cash flow between $325 million and $375 million, a significant decrease from the previous expectation of $550 million, indicating increasing financial pressure.
- Unexpected CFO Departure: The sudden resignation of CFO David Wyshner has alarmed investors, compounded by the announcement of a delay in filing the quarterly 10-Q report with the SEC due to a review of cash management practices and internal controls, which may reveal material weaknesses.
- Investor Reaction: Despite the stock being priced at only three times the anticipated per-share profit, investor concerns over potential inaccuracies in past and current financial reports have led to heightened volatility, making it advisable for investors to approach with caution as stability may be elusive in the near term.
See More
KYNDRYL Reports Adjusted EPS of USD 0.52 for Q3
- Market Overview: The Kyndryl stock has shown a slight adjustment, with a current price of $0.52.
- Financial Performance: The company is navigating through financial challenges, reflected in its stock performance.
- Investor Sentiment: There is cautious optimism among investors regarding Kyndryl's future prospects.
- Industry Context: The broader market conditions are influencing Kyndryl's stock movements and overall performance.
See More
Surge in Options Trading Volume for Datadog and Teradata
- Datadog Options Volume: Datadog Inc saw options trading volume of 62,594 contracts, equating to approximately 6.3 million shares, which represents about 96.4% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High-Frequency Trading Insight: Notably, the $105 strike put option expiring on February 13, 2026, has seen 6,809 contracts traded today, representing around 680,900 underlying shares, suggesting an increased bearish sentiment among investors regarding the stock's price trajectory.
- Teradata Options Activity: Teradata Corp recorded an options trading volume of 12,332 contracts, equivalent to approximately 1.2 million shares, which accounts for 92.4% of its average daily trading volume over the past month, reflecting a vibrant trading atmosphere surrounding its stock.
- Bullish Call Option Trend: The $30 strike call option expiring on February 20, 2026, has seen 6,008 contracts traded today, representing about 600,800 shares, indicating a bullish outlook among investors for Teradata's future price movements.
See More
Kyndryl Holdings Under Investigation for Possible Securities Law Violations
- Executive Departures: On February 9, 2026, Kyndryl announced the immediate departure of its CFO and General Counsel, significantly undermining market confidence in the company's governance and potentially affecting investor trust in its future prospects.
- Internal Control Review: The company is reviewing its cash management practices and the effectiveness of its internal controls over financial reporting, with expectations to report material weaknesses that could lead to inaccuracies in future financial statements, further impacting shareholder interests.
- Stock Price Plunge: Following the announcement, Kyndryl's stock price fell as much as 54% in pre-market trading on February 9, 2026, resulting in substantial financial losses for investors and reflecting serious concerns about the company's financial health.
- SEC Investigation Impact: Kyndryl has received voluntary document requests from the SEC, indicating potential broader legal and financial risks for the company, prompting investors to closely monitor developments for potential legal claims opportunities.
See More
Kyndryl Shares Plunge 57% Following SEC Investigation Announcement
- Delayed Financial Reporting: Kyndryl Holdings announced it would not timely file its quarterly report for the period ending December 31, 2025, resulting in a nearly 57% drop in share price on February 9, 2026, erasing over $3 billion in market capitalization and severely impacting investor confidence.
- Executive Departures: The immediate departure of CFO David Wyshner and General Counsel Edward Sebold on February 5, 2026, has heightened concerns regarding the company's internal controls and financial transparency, potentially affecting its future financing capabilities.
- SEC Investigation Initiated: Kyndryl's Audit Committee is reviewing its cash management practices and related disclosures, having received document requests from the SEC, which may lead to increased regulatory scrutiny and potential legal liabilities for the company.
- Investor Rights Protection: Hagens Berman law firm has launched an investigation to assess whether Kyndryl misled investors, urging those who suffered significant losses to contact the firm, reflecting heightened market concerns over corporate governance and transparency.
See More
Kyndryl Under Investigation for Potential Securities Law Violations
- Investigation Reasons: Bleichmar Fonti & Auld LLP is investigating Kyndryl Holdings for potential violations of federal securities laws due to misrepresentation of cash management practices, particularly concerning the effectiveness of financial reporting controls for FY2025 and the first three quarters of FY2026.
- Delayed Financial Report: On February 9, 2026, Kyndryl announced a delay in releasing its fiscal Q3 2026 financial statement pending an accounting review following document requests from the SEC, which triggered significant market reactions.
- Stock Price Plunge: Following this announcement, Kyndryl's stock price dropped over 52% during trading on February 9, 2026, indicating severe investor concerns regarding the company's financial transparency.
- Executive Departures: The company also announced the immediate departures of its CFO and General Counsel, further intensifying market fears about corporate governance and financial health.
See More
Kyndryl Shares Plunge 54.5% After Disappointing Q3 Results
- Disappointing Earnings: Kyndryl reported $3.9 billion in revenue for Q3, translating to a net income of only $57 million and an adjusted profit of $0.52 per share, which, despite slight year-over-year growth, fell short of expectations, resulting in a staggering 54.5% drop in stock price.
- Lowered Financial Guidance: The company has revised its revenue forecast for the current fiscal year to be 2% to 3% lower than last year, anticipating free cash flow between $325 million and $375 million, a significant decrease from the previous expectation of $550 million, indicating increasing financial pressure.
- Unexpected CFO Departure: The sudden resignation of CFO David Wyshner has alarmed investors, compounded by the announcement of a delay in filing the quarterly 10-Q report with the SEC due to a review of cash management practices and internal controls, which may reveal material weaknesses.
- Investor Reaction: Despite the stock being priced at only three times the anticipated per-share profit, investor concerns over potential inaccuracies in past and current financial reports have led to heightened volatility, making it advisable for investors to approach with caution as stability may be elusive in the near term.
See More
