Kyndryl Confirms No Corrections Needed for Q3 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy KD?
Source: Fool
- Stock Price Surge: Kyndryl's stock rose 10.3% to $13.54 this morning, primarily due to the company's confirmation that no corrections are needed for its 2025 quarterly results, restoring investor confidence in its financial health.
- Financial Reporting Stability: Upon refiling its financial statements, Kyndryl stated that there has been no restatement of current or prior financial reports, indicating effective financial reporting controls and alleviating investor concerns, thus avoiding a potential accounting disaster.
- Market Reaction: Despite the stock rebound, Kyndryl's shares remain over 40% below their previous highs, reflecting a broader reevaluation of valuations for AI-related stocks, which may impact the company's future performance.
- Earnings Outlook: Kyndryl's current stock price is less than ten times its projected earnings per share, presenting a value investment argument; however, the lack of growth prospects means investors should clarify their investment objectives before proceeding.
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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: 12.240
Low
28.00
Averages
33.25
High
40.00
Current: 12.240
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 Faces Class Action Lawsuit Reminder for Investors
- Class Action Notification: The Schall Law Firm reminds investors of a class action lawsuit against Kyndryl Holdings, Inc. for violations of securities laws, involving securities transactions from August 7, 2024, to February 9, 2026, with a deadline for participation set for April 13, 2026.
- Financial Misstatements: The complaint alleges that Kyndryl materially misstated its financial statements and failed to maintain adequate internal controls, resulting in significant investor losses when the truth emerged, highlighting serious deficiencies in the company's financial transparency.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected investors to reach out to discuss their rights, demonstrating the firm's commitment to protecting investor interests and providing legal support.
- Lawsuit Status Explanation: The class action has not yet been certified, meaning investors who do not take action will be considered absent class members, underscoring the importance of participation to safeguard their rights.
See More
Kyndryl Confirms No Corrections Needed for Q3 Results
- Stock Price Surge: Kyndryl's stock rose 10.3% to $13.54 this morning, primarily due to the company's confirmation that no corrections are needed for its 2025 quarterly results, restoring investor confidence in its financial health.
- Financial Reporting Stability: Upon refiling its financial statements, Kyndryl stated that there has been no restatement of current or prior financial reports, indicating effective financial reporting controls and alleviating investor concerns, thus avoiding a potential accounting disaster.
- Market Reaction: Despite the stock rebound, Kyndryl's shares remain over 40% below their previous highs, reflecting a broader reevaluation of valuations for AI-related stocks, which may impact the company's future performance.
- Earnings Outlook: Kyndryl's current stock price is less than ten times its projected earnings per share, presenting a value investment argument; however, the lack of growth prospects means investors should clarify their investment objectives before proceeding.
See More
Analysis of Kyndryl and Monday.com Quarterly Report Fallout
- Kyndryl Financial Crisis: Kyndryl's CFO and General Counsel were dismissed, leading to a delay in quarterly filings and an inability to verify the effectiveness of internal controls over financial reporting, resulting in a more than 50% drop in stock price, indicating severe market concerns about its financial health and potential investor confidence collapse.
- Monday.com Performance Decline: Despite reporting mid-20% revenue growth, Monday.com faced a significant market reaction with stock prices dropping over 20% due to falling operating income and margins, reflecting investor pessimism about its future growth and potential market share loss.
- Surge in Capital Expenditures: Major tech companies like Alphabet and Meta reported a total capital expenditure of $400 billion over the last four quarters, highlighting fierce competition for AI infrastructure, which may lead to future financial strain and market instability.
- CoreWeave's High Leverage Risk: CoreWeave carries $14 billion in debt with over $300 million in quarterly interest payments, and despite strong market performance, its high leverage and reliance on future revenue raise significant bankruptcy risks, necessitating cautious evaluation of its sustainability.
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 Faces Class Action Lawsuit Reminder for Investors
- Class Action Notification: The Schall Law Firm reminds investors of a class action lawsuit against Kyndryl Holdings, Inc. for violations of securities laws, involving securities transactions from August 7, 2024, to February 9, 2026, with a deadline for participation set for April 13, 2026.
- Financial Misstatements: The complaint alleges that Kyndryl materially misstated its financial statements and failed to maintain adequate internal controls, resulting in significant investor losses when the truth emerged, highlighting serious deficiencies in the company's financial transparency.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected investors to reach out to discuss their rights, demonstrating the firm's commitment to protecting investor interests and providing legal support.
- Lawsuit Status Explanation: The class action has not yet been certified, meaning investors who do not take action will be considered absent class members, underscoring the importance of participation to safeguard their rights.
See More
Kyndryl Confirms No Corrections Needed for Q3 Results
- Stock Price Surge: Kyndryl's stock rose 10.3% to $13.54 this morning, primarily due to the company's confirmation that no corrections are needed for its 2025 quarterly results, restoring investor confidence in its financial health.
- Financial Reporting Stability: Upon refiling its financial statements, Kyndryl stated that there has been no restatement of current or prior financial reports, indicating effective financial reporting controls and alleviating investor concerns, thus avoiding a potential accounting disaster.
- Market Reaction: Despite the stock rebound, Kyndryl's shares remain over 40% below their previous highs, reflecting a broader reevaluation of valuations for AI-related stocks, which may impact the company's future performance.
- Earnings Outlook: Kyndryl's current stock price is less than ten times its projected earnings per share, presenting a value investment argument; however, the lack of growth prospects means investors should clarify their investment objectives before proceeding.
See More
Analysis of Kyndryl and Monday.com Quarterly Report Fallout
- Kyndryl Financial Crisis: Kyndryl's CFO and General Counsel were dismissed, leading to a delay in quarterly filings and an inability to verify the effectiveness of internal controls over financial reporting, resulting in a more than 50% drop in stock price, indicating severe market concerns about its financial health and potential investor confidence collapse.
- Monday.com Performance Decline: Despite reporting mid-20% revenue growth, Monday.com faced a significant market reaction with stock prices dropping over 20% due to falling operating income and margins, reflecting investor pessimism about its future growth and potential market share loss.
- Surge in Capital Expenditures: Major tech companies like Alphabet and Meta reported a total capital expenditure of $400 billion over the last four quarters, highlighting fierce competition for AI infrastructure, which may lead to future financial strain and market instability.
- CoreWeave's High Leverage Risk: CoreWeave carries $14 billion in debt with over $300 million in quarterly interest payments, and despite strong market performance, its high leverage and reliance on future revenue raise significant bankruptcy risks, necessitating cautious evaluation of its sustainability.
See More
