NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP is investigating potential claims against Kyndryl Holdings, Inc. ("Kyndryl†or the "Company†) (NYSE:KD). The investigation concerns whether the Company and/or members of its senior management may have violated federal securities laws or engaged in other unlawful business practices. [LEARN MORE ABOUT THE INVESTIGATION] At this stage, no lawsuit has been filed. The investigation is ongoing to determine whether claims may be brought under federal ...

In addition, the company announced it will delay the filing of its Form 10-Q for the quarter ended December 31, 2025 and that, when filed, it expects it will "report material weaknesses in the company's internal control over financial reporting†for the period covered in the report, as well as the full fiscal year ended March 31, 2025, and the first two quarters of fiscal year 2026. Additionally, the company revealed that its Chief Financial Officer, David Wysher, and General Counsel, Edward Sebold, have bot ...

Core Viewpoint - Kyndryl, an IT infrastructure and cloud services provider, is facing significant challenges including a sharp decline in stock price, missed earnings expectations, an accounting review, and leadership changes, leading to increased legal scrutiny [2][5]. Financial Performance - Kyndryl's stock closed at $10.59, down 54.94% after earnings and revenue missed estimates, with revenue only rising 3% [2][5]. - The company has a market capitalization of $5.4 billion and a gross margin of 21.50% [2]. - Trading volume reached 59.3 million shares, significantly above the three-month average of 3.2 million shares [3]. Leadership and Governance - The company announced a leadership shake-up in its finance and legal departments, including the departure of the CFO, following the disclosure of material weaknesses in internal controls [5]. - The delay in filing the Form 10-Q has raised concerns among investors and led to securities-fraud investigations by multiple law firms [5]. Market Context - The broader U.S. markets showed slight gains, with the S&P 500 up 0.45% and the Nasdaq Composite rising 0.90%, indicating pressure across traditional IT services providers [4]. - Kyndryl's stock has fallen 74% since its IPO in 2021, reflecting ongoing challenges in the IT services sector [3]. Valuation Perspective - Kyndryl is currently viewed as deeply discounted in terms of valuation, but uncertainty surrounding the recent issues has led to a cautious stance among investors [6].

Core Viewpoint - Kyndryl's shares fell over 56% intra-day following the announcement of a delay in filing its December-quarter financial report due to material weaknesses in internal controls over financial reporting [1] Group 1: Financial Reporting Issues - The identified weaknesses in internal controls extend across the fiscal year ending March 2025 and the first two quarters of fiscal 2026 [2] - Kyndryl stated that it does not expect any impact on its balance sheets, income statements, cash flow statements, or equity statements despite the identified issues [2] Group 2: Executive Changes - Kyndryl announced several executive changes, including the departure of Chief Financial Officer David Wyshner and the appointment of Harsh Chugh as interim CFO [3] - Global Controller Vineet Khurana also stepped down, with Bhavna Doegar appointed as interim corporate controller [3] Group 3: Revenue Outlook - Kyndryl released its third-quarter results and lowered its revenue outlook for fiscal 2026 [4]

Company Overview - Kyndryl is a provider of information technology infrastructure services [2] Recent Developments - On February 9, 2026, Kyndryl announced that its Audit Committee is reviewing cash management practices and related disclosures, including the drivers of the Company's adjusted free cash flow metric, following requests from the SEC [3] - The review has delayed the finalization of the Quarterly Report and the assessment of internal control over financial reporting [3] - Key executive departures were reported, including David Wyshner as Chief Financial Officer and Edward Sebold as General Counsel, effective immediately [3] - Vineet Khurana also stepped down from his position as Senior Vice President and Global Controller, taking on a different role within the Company [3] - Following these announcements, Kyndryl's stock price fell nearly 55% [3]

Core Viewpoint - Kyndryl Holdings, Inc. is under investigation for potential claims related to its cash management practices and internal controls, following significant disclosures that have led to a drastic decline in its stock price [4][5][6][7]. Group 1: Company Disclosures - On February 9, 2026, Kyndryl disclosed that its Audit Committee is reviewing cash management practices and related disclosures, prompted by voluntary document requests from the SEC's Division of Enforcement [5]. - Kyndryl expects to report material weaknesses in internal control over financial reporting for multiple reporting periods, indicating that previous assessments and auditor opinions should no longer be relied upon [6]. - The company announced the immediate departures of its Chief Financial Officer and General Counsel, and it will delay the filing of its Quarterly Report on Form 10-Q [7]. Group 2: Market Reaction - Following the disclosures regarding internal controls and management changes, Kyndryl's stock price declined approximately 50% on February 9, 2026 [7].

MILWAUKEE, Feb. 9, 2026 /PRNewswire/ -- Ademi LLP is investigating possible securities fraud claims against Kyndryl (NYSE: KD). The investigation results from inaccurate statements Kyndryl may have made regarding its financial statements, business operations and prospects. Click here to join our investigation or to obtain additional information, or contact us at [email protected] or toll-free: 866-264-3995. There is no cost or obligation to you. The investigation focuses on whether Kyndryl's cash-managemen ...

Core Insights - Kyndryl Holdings, Inc. reported a revenue increase of 3.1% year-over-year, but its earnings per share (EPS) of $0.52 fell short of the expected $0.60, resulting in a negative EPS surprise of -12.85% [1][5] - The company's revenue for the quarter was $3.86 billion, slightly below the Zacks Consensus Estimate of $3.91 billion, leading to a revenue surprise of -1.38% [2] - Kyndryl has only surpassed consensus revenue estimates once in the last four quarters, indicating ongoing challenges in meeting market expectations [2] Financial Metrics - Kyndryl's price-to-earnings (P/E) ratio stands at 4.53, suggesting a low valuation relative to its earnings, while the price-to-sales ratio is 0.17, indicating a modest market valuation of its sales [3][5] - The enterprise value to sales ratio is 0.31, and the enterprise value to operating cash flow ratio is 7.80, providing insights into the company's valuation and cash flow efficiency [3] - The debt-to-equity ratio of 3.25 indicates a higher level of debt compared to equity, which may raise concerns for investors [4][5] Financial Stability - Kyndryl's current ratio of 1.07 suggests it has a slightly higher level of current assets compared to its current liabilities, indicating short-term financial stability [4][5] - Despite the challenges, Kyndryl remains committed to achieving its multi-year objectives and delivering innovative services for its customers, as emphasized by CEO Martin Schroeter [4]

Core Viewpoint - Kyndryl Holdings, Inc. experienced a significant drop in share price, nearly 57%, following the announcement of delays in filing its quarterly report and the immediate departure of key executives, raising concerns about the company's financial practices and internal controls [1][5]. Group 1: Company Developments - Kyndryl announced it would not timely file its quarterly report for the quarter ended December 31, 2025, due to an ongoing review by its Audit Committee regarding cash management practices and internal controls [4]. - The company revealed it received document requests from the SEC's Division of Enforcement related to the matters under review by the Audit Committee [4]. - The CFO David Wyshner and General Counsel Edward Sebold departed effective February 5, 2026, alongside the comptroller Vineet Khurana, who stepped down while assuming another position [5]. Group 2: Market Reaction - Following the announcements, Kyndryl's share price fell nearly 57% in a single trading day, resulting in a loss of over $3 billion in market capitalization [1][5]. - The severe market reaction has prompted Hagens Berman, a national shareholder rights law firm, to investigate whether Kyndryl misled investors regarding its financial statements and internal controls [2][6]. Group 3: Legal Implications - Hagens Berman is investigating the potential misleading of investors concerning Kyndryl's cash management practices, particularly in light of the company's previous emphasis on strong free cash flow conversion [3][6]. - The firm is urging Kyndryl investors who suffered significant losses to contact them to discuss their rights [2].

NEW YORK, Feb. 09, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Kyndryl Holdings, Inc. (NYSE:KD) for potential violations of the federal securities laws. If you invested in Kyndryl, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/kyndryl-holdings-class-action-lawsuit. Why is Kyndryl Being Investigated for Violations of the Federal Securities Laws? Kyndryl is a provider of enterprise technology s ...