Core Viewpoint - Kyndryl Holdings, Inc. has experienced a significant decline in share price due to an internal accounting review, a delay in filing its quarterly report, and the resignation of its CFO, raising concerns about potential securities law violations [2][4]. Group 1: Company Developments - Kyndryl Holdings' shares fell more than 50% in intraday trading on February 9, 2026, following the announcement of an internal accounting review [2]. - The internal review focuses on cash management practices, related disclosures, and internal control over financial reporting, prompted by document requests from the SEC [2]. - Kyndryl does not anticipate a restatement of financials but expects to report material weaknesses in internal control over financial reporting for FY25 and the first three quarters of FY26 [2]. Group 2: Legal Investigation - Block & Leviton is investigating Kyndryl Holdings for potential securities law violations and may file an action to recover losses for affected investors [4][6]. - Investors who have lost money in Kyndryl Holdings are encouraged to contact Block & Leviton for more information on recovery options [3][5]. - The firm is recognized as a leading securities class action firm, having recovered billions for defrauded investors [7].

For the quarter ended December 2025, Kyndryl Holdings, Inc. (KD) reported revenue of $3.86 billion, up 3.1% over the same period last year. EPS came in at $0.52, compared to $0.51 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $3.91 billion, representing a surprise of -1.38%. The company delivered an EPS surprise of -12.85%, with the consensus EPS estimate being $0.60.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Financial Data and Key Metrics Changes - The company reported revenue of $3.9 billion for the third quarter, reflecting a 3% increase year-over-year on a reported basis, unchanged in constant currency [15][16] - Adjusted EBITDA decreased by 1% year-over-year to $696 million, while Adjusted Pre-Tax Income grew by 5% year-over-year to $168 million [16][18] - Free cash flow generated in the third quarter was $217 million, with a net CapEx of $210 million [18][19] Business Line Data and Key Metrics Changes - Kyndryl Consult experienced a strong performance with a 20% year-over-year growth in constant currency, now representing 25% of total revenue [15][16] - Hyperscaler-related revenue reached $500 million in the third quarter, marking a 58% increase year-over-year, exceeding initial growth expectations [17] - The company signed contracts totaling $3.9 billion in the quarter, with a trailing 12-month revenue book-to-bill ratio remaining above 1.0 [5][16] Market Data and Key Metrics Changes - The company noted a slowdown in attrition rates, particularly in strategic markets and the UK, which has led to increased local hiring costs [31][32] - The evolving partnership with IBM has resulted in a significant reduction in annualized spend from nearly $4 billion to approximately $2 billion, impacting revenue growth [9][58] Company Strategy and Development Direction - The company is focused on expanding its capabilities in AI and private cloud services, responding to increased demand driven by data sovereignty and security requirements [12][66] - The strategic direction emphasizes the importance of long-term customer relationships and adapting to changing market dynamics [13][66] - The company aims to achieve fiscal 2028 targets, projecting approximately $1.1 billion in Adjusted Pre-Tax Income and over $1 billion in adjusted free cash flow [14][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that longer sales cycles and evolving customer consumption models are impacting revenue expectations [24][28] - The company remains confident in its growth strategy despite current challenges, emphasizing the importance of adapting to industry disruptions caused by AI and regulatory changes [7][39] - Management reiterated that they do not expect a restatement of financial statements despite ongoing SEC reviews [25][36] Other Important Information - The company has repurchased 3.7 million shares in the quarter, representing 1.6% of outstanding shares, as part of its capital allocation strategy [18][19] - The financial position remains strong with a cash balance of $1.35 billion and a net leverage ratio of 0.7x Adjusted EBITDA [20][21] Q&A Session Summary Question: Outlook and Revision Factors - Analysts inquired about the reasons behind the revised outlook, focusing on sales cycle delays and the evolving IBM partnership [27][28] - Management explained that the sales cycles have lengthened due to market dynamics and regulatory discussions, impacting growth expectations [28][29] Question: Strategic Market Changes - Questions were raised regarding changes in strategic markets, particularly in the UK, and the associated costs and benefits [30][31] - Management indicated that investments in local markets are necessary but may take time to yield results [31][32] Question: Free Cash Flow and Working Capital - Analysts sought clarification on the factors affecting free cash flow projections, particularly in relation to pre-tax income revisions [49][50] - Management confirmed that the primary driver of the change in free cash flow guidance is linked to the revision in pre-tax income [50] Question: Confidence in Fiscal 2028 Targets - Questions were posed about the building blocks supporting confidence in achieving fiscal 2028 targets despite current shortfalls [56][57] - Management highlighted the importance of cash flow growth, profitability improvements, and the shift towards higher-margin contracts as key factors [58][59]

Financial Data and Key Metrics Changes - The company reported revenue of $3.9 billion for the third quarter, reflecting a 3% increase year-over-year on a reported basis, unchanged in constant currency [15] - Adjusted EBITDA decreased by 1% year-over-year to $696 million, while Adjusted Pre-Tax Income grew by 5% year-over-year to $168 million [16] - Free cash flow generated in the third quarter was $217 million, with a net CapEx of $210 million [18] Business Line Data and Key Metrics Changes - Kyndryl Consult experienced a strong performance with a 20% year-over-year growth in constant currency, now representing 25% of total revenue [15][16] - Hyperscaler-related revenue reached $500 million in the third quarter, marking a 58% increase year-over-year [17] - Signings for the quarter totaled $3.9 billion, with a trailing 12-month revenue book-to-bill ratio remaining above 1.0x [5][15] Market Data and Key Metrics Changes - The company noted a slowdown in attrition rates, which has led to higher labor costs in the near term [7] - The evolving partnership with IBM has resulted in a significant reduction in annualized spend from nearly $4 billion to approximately $2 billion [9] - The company is addressing market dynamics such as data sovereignty and AI, which are impacting customer decision-making processes [39] Company Strategy and Development Direction - The company is focused on expanding its capabilities in AI and private cloud services, responding to increased demand driven by industry trends [12][66] - The strategic partnership with IBM is evolving, with efforts to enhance the value proposition for customers [8][10] - The company aims to achieve fiscal 2028 targets, with a focus on margin expansion and profitability through high-value service offerings [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that longer sales cycles and evolving customer consumption models are impacting revenue growth expectations [24] - The company remains confident in its growth strategy despite recent challenges, emphasizing the importance of adapting to market dynamics [7][13] - Management expects to generate approximately $800 million in free cash flow over fiscal 2025 and 2026 combined [14][23] Other Important Information - The company disclosed a delay in filing its quarterly report due to an ongoing review of cash management practices by the SEC, but does not expect a restatement of financial statements [25] - The company has repurchased 3.7 million shares in the quarter, representing 1.6% of outstanding shares, as part of its capital allocation strategy [18][19] Q&A Session Summary Question: Outlook and Revision Factors - Analysts inquired about the reasons behind the revised outlook, focusing on longer sales cycles and the evolving IBM partnership [27][28] - Management explained that the sales cycle extension affected multiple business areas, including Consult and hyperscaler services [28][29] Question: Strategic Markets and UK Operations - Questions were raised regarding changes in Strategic Markets and the UK, with management indicating that local investments are more expensive and adjustments will take time [30][31] Question: Impact of Review on Forward Commentary - Analysts asked about the impact of the SEC review on future guidance, to which management reiterated confidence in achieving fiscal 2028 goals without expecting a restatement [36] Question: Sales Cycle Length and Deal Timelines - Analysts sought clarification on the timeframe for closing deals affected by extended sales cycles, with management indicating that many discussions are linked to customer renewals and should stabilize within a couple of quarters [61][63] Question: Free Cash Flow and Working Capital - Questions were raised about the decrease in free cash flow guidance, attributed primarily to changes in pre-tax income [49][50] Question: Confidence in Fiscal 2028 Targets - Analysts asked about the building blocks supporting confidence in fiscal 2028 targets, with management highlighting improved cash flow and profitability driven by high-margin backlog [56][58]

Financial Data and Key Metrics Changes - Revenue for the third quarter totaled $3.9 billion, representing a 3% increase year-over-year on a reported basis, unchanged in constant currency [16] - Adjusted EBITDA decreased by 1% year-over-year to $696 million, while Adjusted Pre-Tax Income grew by 5% year-over-year to $168 million [17] - Free cash flow generated in the third quarter was $217 million, with a net CapEx of $210 million [19] Business Line Data and Key Metrics Changes - Kyndryl Consult experienced a strong performance with a 20% year-over-year growth in constant currency, now representing 25% of total revenue [16][17] - Hyperscaler-related revenue reached $500 million in the third quarter, a 58% increase year-over-year, putting the company on track to exceed 50% growth for the year [18] - Signings for the quarter totaled $3.9 billion, with a trailing 12-month revenue book-to-bill ratio remaining above 1.0 [5][17] Market Data and Key Metrics Changes - The company noted a slowdown in strategic markets, particularly in the UK, which contributed to longer sales cycles [16][32] - The evolving partnership with IBM has impacted revenue growth, with a noted decline in IBM-related spending from nearly $4 billion to approximately $2 billion [10][53] Company Strategy and Development Direction - The company is focused on expanding its capabilities in AI and private cloud services, responding to increased demand driven by data sovereignty and security requirements [13][61] - Kyndryl aims to drive margin expansion through its Three-A's initiative and is committed to maintaining strong liquidity while investing in business growth [21][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that longer sales cycles and evolving customer consumption models are affecting revenue expectations, particularly in the context of AI and data sovereignty [5][24] - The company remains confident in achieving its fiscal 2028 targets, despite the challenges faced in the current fiscal year [35][53] Other Important Information - The filing of the quarterly report will be delayed due to an ongoing review of cash management practices by the SEC, but no restatement of financial statements is expected [25] - The company has repurchased 3.7 million shares in the quarter, representing 1.6% of outstanding shares, as part of its capital allocation strategy [19][20] Q&A Session Summary Question: Outlook and Revision Factors - The management discussed the unexpected lengthening of sales cycles and the evolving IBM partnership as primary factors affecting the revised outlook [27][30] Question: Strategic Market Changes - Management indicated that investments in strategic markets, particularly in the UK, are being addressed, although changes may take time to implement [31][32] Question: Impact of Review on Forward Commentary - The company cannot comment on the ongoing SEC review until it is complete, but remains confident in its fiscal 2028 goals [35] Question: Sales Cycle Elongation - Management noted that the elongation of sales cycles is not expected to be multi-year and is linked to customer renewals [56] Question: Free Cash Flow Changes - The decrease in expected free cash flow is primarily attributed to changes in pre-tax income, with working capital also playing a role [46][47] Question: Confidence in Fiscal 2028 Targets - Management highlighted the importance of cash flow growth and the shift towards higher-margin contracts as key drivers for achieving fiscal 2028 targets [51][53]

Kyndryl Holdings, Inc. (KD) came out with quarterly earnings of $0.52 per share, missing the Zacks Consensus Estimate of $0.6 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -12.85%. A quarter ago, it was expected that this company would post earnings of $0.35 per share when it actually produced earnings of $0.38, delivering a surprise of +8.57%.Over the last four quarters, the com ...

Third Quarter 2026 Earnings February 9, 2026 Disclaimers Forward-looking statements This presentation and the related conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "objectives," "opportunity," "plan," "position," "predict," "project," "should," "seek," "target," "will," "would ...

Core Viewpoint - Kyndryl's stock is experiencing a significant decline due to an accounting investigation, a change in the chief financial officer, and a downward revision of financial guidance, leading to expectations of a revenue decline for the fiscal year [1] Financial Performance - Kyndryl anticipates a revenue decline of 2% to 3% on a constant-currency basis for the fiscal year ending in March, a shift from its previous forecast of 1% growth [1] Management Changes - The company has suddenly changed its chief financial officer, which is contributing to investor concerns and the stock's sharp decline [1] Accounting Issues - Kyndryl expects to report "material weaknesses" around its financial controls, which is a significant red flag for investors [1]

Kyndryl, Hims & Hers, Novo Nordisk, Kroger, Nvidia, Monday.com, and More Movers - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# These Stocks Are Today's Movers: Kyndryl, Hims & Hers, Novo Nordisk, Kroger, Nvidia, Monday.com, and MoreBy [Mac ...

Kyndryl stock tumbled early Monday after the company said its chief financial officer was leaving amid an accounting review. ...