Kyndryl Reports Q3 Earnings Decline Amid Market Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
0mins
Should l Buy KD?
Source: Fool
Kyndryl Holdings Inc. is experiencing a significant pre-market decline of 45.98%, hitting a 52-week low.
The company reported a net income of $57 million for Q3 2025, a sharp drop from $215 million in the previous year, indicating challenges in profitability amid increasing market competition. Additionally, Kyndryl's adjusted earnings of $0.52 per share missed expectations by $0.08, reflecting pressure on profitability that may affect investor confidence moving forward. Despite a 3% year-over-year revenue growth to $3.9 billion, the results fell short of market expectations, leading to concerns about future business expansion.
The decline in earnings and the missed expectations may lead to increased stock price volatility, as investors reassess their confidence in Kyndryl's ability to navigate the competitive landscape.
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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: 13.590
Low
28.00
Averages
33.25
High
40.00
Current: 13.590
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 Shares Surge Following Favorable Accounting News, But Challenges Remain.
- Earnings Report Update: Kyndryl Holdings filed its delayed quarterly earnings report, which contributed to a recovery in its stock price.
- Positive Financial Outlook: The company provided a positive update regarding its financial reporting, indicating improved prospects.
See More
Kyndryl Discloses Financial Report and Internal Control Issues
- Financial Report Update: Kyndryl has filed its quarterly report for the quarter ended December 31, 2025, along with amendments to its annual report for the fiscal year ended March 31, 2025, indicating efforts to enhance financial transparency without restating any prior financial data.
- Internal Control Deficiencies: The company disclosed material weaknesses in its internal controls over financial reporting, particularly regarding cash management and deferring vendor payments, highlighting the need for improved compliance and risk management practices.
- Remediation Plan: Kyndryl has outlined a remediation plan aimed at continuously enhancing and updating its internal controls to ensure more accurate and reliable financial reporting in the future, thereby boosting investor confidence.
- Business Stability: Despite the internal control issues, Kyndryl emphasizes that its financial position remains strong, with its global team focused on delivering mission-critical services and achieving multi-year performance objectives, demonstrating resilience in the market.
See More
Kyndryl Expands CSR Commitment in India to Train 50,000 Students
- AI Skills Training Initiative: Kyndryl has announced a commitment to train 50,000 students and 30,000 youth in India, aiming to enhance AI skills through inclusive training, thereby supporting national digital and skilling priorities and fostering future talent development.
- Public Sector AI Readiness: Kyndryl will integrate its AI for Governance programs with the Government's Karmayogi iGOT platform, providing courses on AI fundamentals and cyber safety to help officials identify AI application opportunities and strengthen cyber resilience in public institutions.
- AI Education in Government Schools: Kyndryl will launch a foundational AI learning initiative in government schools in Varanasi and Ayodhya, aiming to provide age-appropriate AI education to 50,000 students and upskill 1,000 teachers over two years.
- Youth Empowerment Program: Kyndryl plans to train graduates to become AI change-makers, with an initiative to empower 30,000 youth annually across India over three years, supporting rural governance, agriculture, and livelihood development to foster sustainable AI ecosystems.
See More
Kyndryl Launches Cyber Defense Operations Center in India
- Cyber Defense Center Launch: Kyndryl has launched its first Cyber Defense Operations Center in Bengaluru, India, aimed at enhancing enterprise response speed and overall IT performance by integrating network and security operations to meet the demands of increasingly complex IT environments.
- Addressing Complexity Challenges: According to the 2025 Kyndryl Readiness Report, only 31% of organizations are prepared for external business risks, indicating that technology complexity is a major barrier to scaling AI, and the new command center will help enterprises overcome this challenge.
- Real-Time Monitoring and Collaborative Analysis: The center offers real-time visibility, unified monitoring, and collaborative analysis, assisting enterprises in modernizing their IT environments, improving security and efficiency, and ensuring higher uptime.
- Global Expansion Plans: Kyndryl plans to expand the center beyond India to support growing global demand and accelerate the adoption of its integrated operating model, further solidifying its leadership position in the cybersecurity domain.
See More
Kyndryl Faces Securities Class Action Lawsuit
- Lawsuit Deadline: ClaimsFiler reminds Kyndryl investors that they must file lead plaintiff applications by April 13, 2026, for shares purchased between August 7, 2024, and February 9, 2026, highlighting investor concerns over potential legal risks associated with the company.
- Financial Reporting Delay: On February 9, 2026, Kyndryl disclosed its inability to timely file its Form 10-Q for the quarter ending December 31, 2025, anticipating reporting material weaknesses in internal controls, which could undermine investor confidence in the company's financial health.
- Executive Departures Impact: The departure of Kyndryl's CFO and General Counsel is linked to the financial reporting issues, exacerbating market concerns regarding the stability of the company's management and potentially affecting future investment decisions.
- Stock Price Plunge: Following the announcement, Kyndryl's stock price plummeted by $12.90, or 55%, closing at $10.59, reflecting strong market unease regarding the company's financial condition and governance structure.
See More
Kyndryl Faces Securities Class Action Lawsuit
- Stock Price Plunge: Kyndryl's shares fell by $12.90, or 55%, on February 9, 2026, after the company failed to timely file its quarterly report, resulting in over $3 billion in market capitalization lost in a single day, reflecting severe market concerns regarding the company's financial transparency.
- Internal Control Weaknesses: The company disclosed significant weaknesses in its internal controls, particularly regarding information communication and 'tone at the top,' which are expected to impact financial reporting for the fiscal year ending March 31, 2025, potentially undermining investor confidence in corporate governance.
- Executive Departures: Kyndryl announced the departure of key executives Wyshner and Sebold on February 5, 2026, along with the reassignment of its comptroller Khurana, which may exacerbate market anxiety and uncertainty about the company's leadership stability.
- SEC Investigation: The company has received document requests from the SEC related to matters under review by the Audit Committee, indicating heightened regulatory scrutiny over Kyndryl's financial management and internal controls, which could lead to more severe regulatory consequences.
See More
Kyndryl Shares Surge Following Favorable Accounting News, But Challenges Remain.
- Earnings Report Update: Kyndryl Holdings filed its delayed quarterly earnings report, which contributed to a recovery in its stock price.
- Positive Financial Outlook: The company provided a positive update regarding its financial reporting, indicating improved prospects.
See More
Kyndryl Discloses Financial Report and Internal Control Issues
- Financial Report Update: Kyndryl has filed its quarterly report for the quarter ended December 31, 2025, along with amendments to its annual report for the fiscal year ended March 31, 2025, indicating efforts to enhance financial transparency without restating any prior financial data.
- Internal Control Deficiencies: The company disclosed material weaknesses in its internal controls over financial reporting, particularly regarding cash management and deferring vendor payments, highlighting the need for improved compliance and risk management practices.
- Remediation Plan: Kyndryl has outlined a remediation plan aimed at continuously enhancing and updating its internal controls to ensure more accurate and reliable financial reporting in the future, thereby boosting investor confidence.
- Business Stability: Despite the internal control issues, Kyndryl emphasizes that its financial position remains strong, with its global team focused on delivering mission-critical services and achieving multi-year performance objectives, demonstrating resilience in the market.
See More
Kyndryl Expands CSR Commitment in India to Train 50,000 Students
- AI Skills Training Initiative: Kyndryl has announced a commitment to train 50,000 students and 30,000 youth in India, aiming to enhance AI skills through inclusive training, thereby supporting national digital and skilling priorities and fostering future talent development.
- Public Sector AI Readiness: Kyndryl will integrate its AI for Governance programs with the Government's Karmayogi iGOT platform, providing courses on AI fundamentals and cyber safety to help officials identify AI application opportunities and strengthen cyber resilience in public institutions.
- AI Education in Government Schools: Kyndryl will launch a foundational AI learning initiative in government schools in Varanasi and Ayodhya, aiming to provide age-appropriate AI education to 50,000 students and upskill 1,000 teachers over two years.
- Youth Empowerment Program: Kyndryl plans to train graduates to become AI change-makers, with an initiative to empower 30,000 youth annually across India over three years, supporting rural governance, agriculture, and livelihood development to foster sustainable AI ecosystems.
See More
Kyndryl Launches Cyber Defense Operations Center in India
- Cyber Defense Center Launch: Kyndryl has launched its first Cyber Defense Operations Center in Bengaluru, India, aimed at enhancing enterprise response speed and overall IT performance by integrating network and security operations to meet the demands of increasingly complex IT environments.
- Addressing Complexity Challenges: According to the 2025 Kyndryl Readiness Report, only 31% of organizations are prepared for external business risks, indicating that technology complexity is a major barrier to scaling AI, and the new command center will help enterprises overcome this challenge.
- Real-Time Monitoring and Collaborative Analysis: The center offers real-time visibility, unified monitoring, and collaborative analysis, assisting enterprises in modernizing their IT environments, improving security and efficiency, and ensuring higher uptime.
- Global Expansion Plans: Kyndryl plans to expand the center beyond India to support growing global demand and accelerate the adoption of its integrated operating model, further solidifying its leadership position in the cybersecurity domain.
See More
Kyndryl Faces Securities Class Action Lawsuit
- Lawsuit Deadline: ClaimsFiler reminds Kyndryl investors that they must file lead plaintiff applications by April 13, 2026, for shares purchased between August 7, 2024, and February 9, 2026, highlighting investor concerns over potential legal risks associated with the company.
- Financial Reporting Delay: On February 9, 2026, Kyndryl disclosed its inability to timely file its Form 10-Q for the quarter ending December 31, 2025, anticipating reporting material weaknesses in internal controls, which could undermine investor confidence in the company's financial health.
- Executive Departures Impact: The departure of Kyndryl's CFO and General Counsel is linked to the financial reporting issues, exacerbating market concerns regarding the stability of the company's management and potentially affecting future investment decisions.
- Stock Price Plunge: Following the announcement, Kyndryl's stock price plummeted by $12.90, or 55%, closing at $10.59, reflecting strong market unease regarding the company's financial condition and governance structure.
See More
Kyndryl Faces Securities Class Action Lawsuit
- Stock Price Plunge: Kyndryl's shares fell by $12.90, or 55%, on February 9, 2026, after the company failed to timely file its quarterly report, resulting in over $3 billion in market capitalization lost in a single day, reflecting severe market concerns regarding the company's financial transparency.
- Internal Control Weaknesses: The company disclosed significant weaknesses in its internal controls, particularly regarding information communication and 'tone at the top,' which are expected to impact financial reporting for the fiscal year ending March 31, 2025, potentially undermining investor confidence in corporate governance.
- Executive Departures: Kyndryl announced the departure of key executives Wyshner and Sebold on February 5, 2026, along with the reassignment of its comptroller Khurana, which may exacerbate market anxiety and uncertainty about the company's leadership stability.
- SEC Investigation: The company has received document requests from the SEC related to matters under review by the Audit Committee, indicating heightened regulatory scrutiny over Kyndryl's financial management and internal controls, which could lead to more severe regulatory consequences.
See More
