Kyndryl Shares Collapse 56% After Company Delays Filing and Flags Control Weaknesses

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]