Kyndryl Faces Class Action Lawsuit Impacting Stock Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy KD?
Source: Businesswire
- Class Action Notification: Kahn Swick & Foti, LLC has notified investors in Kyndryl Holdings, Inc. of a class action lawsuit due to alleged securities fraud occurring between August 7, 2024, and February 9, 2026, aimed at recovering losses for affected investors.
- 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 severely impact financial transparency and investor confidence.
- Stock Price Plunge: Following the lawsuit announcement, Kyndryl's stock price plummeted by 55%, dropping $12.90 to close at $10.59, reflecting significant market concerns regarding the company's financial health and operational integrity.
- Investor Action Recommendation: Affected Kyndryl investors have until April 13, 2026, to request to be appointed as lead plaintiff in the lawsuit, indicating that the ongoing legal challenges could have lasting implications on the company's financial outlook and investor relations.
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Analyst Views on KD
Wall Street analysts forecast KD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KD is 33.25 USD with a low forecast of 28.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 12.120
Low
28.00
Averages
33.25
High
40.00
Current: 12.120
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's Earnings Miss Expectations, Stock Declines
- Earnings Performance: Kyndryl reported adjusted earnings per share of 52 cents, missing the analyst consensus of 60 cents, with quarterly revenues of $3.86 billion slightly below the expected $3.89 billion, indicating significant financial pressure on the company.
- Executive Departure Impact: The departure of the CFO has raised investor concerns, leading JP Morgan to downgrade the stock from Overweight to Underweight and significantly cut its price target to $16, reflecting a pessimistic outlook on the company's future performance.
- Revenue Outlook Downgrade: Kyndryl expects fiscal 2026 adjusted pretax income to be between $575 million and $600 million, down from a previous forecast of $725 million, indicating challenges in the current economic environment that may affect future investor confidence.
- Technical Analysis Shows Weakness: Kyndryl's stock is currently trading 55.3% below its 20-day simple moving average and 60.4% below its 100-day simple moving average, indicating significant weakness in the short term, with shares down 74.18% over the past 12 months.
See More
Kyndryl Launches Intelligent Recovery Service for Enhanced Business Continuity
- Service Innovation: Kyndryl's launch of the Intelligent Recovery Service (KIRS) automates recovery processes and provides real-time visibility, significantly enhancing business continuity and regulatory compliance for organizations facing cyber incidents and operational disruptions in hybrid and multi-cloud environments.
- Rapid Recovery Capability: Integrated with the Kyndryl Bridge platform, KIRS enables large-scale recovery of critical systems across customer IT estates, reducing manual effort and accelerating system restoration, ensuring businesses can respond swiftly in complex regulatory landscapes.
- Industry Applicability: The service is applicable across various sectors, including retail, healthcare, financial services, and manufacturing, protecting essential systems and supporting compliance requirements, thereby mitigating operational risks and maintaining customer trust.
- Real-Time Monitoring and Decision Support: KIRS features unified dashboards that monitor recovery objectives and system health in real-time, assisting organizations in making informed decisions and simplifying governance processes to ensure ongoing compliance.
See More
Kyndryl Launches Intelligent Recovery Service for Enhanced Business Continuity
- Service Innovation: Kyndryl's Intelligent Recovery Service (KIRS) automates recovery processes and provides real-time visibility, helping organizations overcome cyber incidents and operational disruptions, significantly enhancing business continuity and regulatory compliance.
- Accelerated Recovery: Integrated with Kyndryl Bridge, KIRS enables large-scale recovery of critical systems across customer IT estates, reducing manual effort and speeding up system restoration, thus helping businesses respond more swiftly to complex regulatory environments.
- Real-Time Monitoring: The service offers real-time insights into customers' recovery objectives, system health, and resiliency posture, supporting informed decision-making and ongoing compliance while simplifying governance and oversight processes.
- Industry Applicability: KIRS addresses complex recovery challenges across various industries, supporting cloud platforms, containerized workloads, and databases, enabling organizations to develop flexible, customized recovery strategies to meet evolving business needs.
See More
Kyndryl Faces Securities Class Action Lawsuit
- Lawsuit Background: A securities class action lawsuit has been filed against Kyndryl Holdings, Inc. (NYSE: KD) on behalf of all individuals or entities who purchased its securities between August 7, 2024, and February 9, 2026, alleging significant misstatements in financial reports.
- Allegations Details: The complaint claims that the defendants failed to disclose material inaccuracies in Kyndryl's financial statements and that the company lacked adequate internal controls, which resulted in its inability to timely file the Quarterly Report for the quarter ending December 31, 2025, undermining investor confidence.
- Investor Action Required: Affected investors are urged to contact Gainey McKenna & Egleston law firm before the April 13, 2026, lead plaintiff motion deadline to represent other class members in the litigation.
- Legal Consultation Information: Investors seeking to understand their rights or interests regarding this class action can reach out to attorneys at Gainey McKenna & Egleston via phone or email for further legal advice and support.
See More
Kyndryl Faces Class Action Lawsuit Impacting Stock Price
- Class Action Notification: Kahn Swick & Foti, LLC has notified investors in Kyndryl Holdings, Inc. of a class action lawsuit due to alleged securities fraud occurring between August 7, 2024, and February 9, 2026, aimed at recovering losses for affected investors.
- 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 severely impact financial transparency and investor confidence.
- Stock Price Plunge: Following the lawsuit announcement, Kyndryl's stock price plummeted by 55%, dropping $12.90 to close at $10.59, reflecting significant market concerns regarding the company's financial health and operational integrity.
- Investor Action Recommendation: Affected Kyndryl investors have until April 13, 2026, to request to be appointed as lead plaintiff in the lawsuit, indicating that the ongoing legal challenges could have lasting implications on the company's financial outlook and investor relations.
See More
Kyndryl Faces Class Action for Securities Fraud Following Stock Plunge
- Lawsuit Background: Leading securities law firm Bleichmar Fonti & Auld LLP has filed a class action lawsuit against Kyndryl Holdings, Inc. and certain executives for securities fraud, alleging potential violations of federal securities laws that led to significant stock drops.
- Stock Plunge: On February 9, 2026, Kyndryl announced a delay in releasing its fiscal Q3 2026 financial statement due to an SEC review of its cash management practices, causing its stock price to plummet from $23.49 to $10.59 per share, a staggering 55% drop.
- Financial Mismanagement Allegations: The lawsuit claims that Kyndryl misrepresented its cash management practices and the drivers of its adjusted free cash flow metric, which misled investors about the company's financial health and could result in substantial investor losses.
- Legal Options for Investors: Investors are encouraged to apply to lead the case by April 13, 2026, with BFA offering representation on a contingency fee basis, meaning no upfront costs for shareholders, thereby reducing their legal risk.
See More
Kyndryl's Earnings Miss Expectations, Stock Declines
- Earnings Performance: Kyndryl reported adjusted earnings per share of 52 cents, missing the analyst consensus of 60 cents, with quarterly revenues of $3.86 billion slightly below the expected $3.89 billion, indicating significant financial pressure on the company.
- Executive Departure Impact: The departure of the CFO has raised investor concerns, leading JP Morgan to downgrade the stock from Overweight to Underweight and significantly cut its price target to $16, reflecting a pessimistic outlook on the company's future performance.
- Revenue Outlook Downgrade: Kyndryl expects fiscal 2026 adjusted pretax income to be between $575 million and $600 million, down from a previous forecast of $725 million, indicating challenges in the current economic environment that may affect future investor confidence.
- Technical Analysis Shows Weakness: Kyndryl's stock is currently trading 55.3% below its 20-day simple moving average and 60.4% below its 100-day simple moving average, indicating significant weakness in the short term, with shares down 74.18% over the past 12 months.
See More
Kyndryl Launches Intelligent Recovery Service for Enhanced Business Continuity
- Service Innovation: Kyndryl's launch of the Intelligent Recovery Service (KIRS) automates recovery processes and provides real-time visibility, significantly enhancing business continuity and regulatory compliance for organizations facing cyber incidents and operational disruptions in hybrid and multi-cloud environments.
- Rapid Recovery Capability: Integrated with the Kyndryl Bridge platform, KIRS enables large-scale recovery of critical systems across customer IT estates, reducing manual effort and accelerating system restoration, ensuring businesses can respond swiftly in complex regulatory landscapes.
- Industry Applicability: The service is applicable across various sectors, including retail, healthcare, financial services, and manufacturing, protecting essential systems and supporting compliance requirements, thereby mitigating operational risks and maintaining customer trust.
- Real-Time Monitoring and Decision Support: KIRS features unified dashboards that monitor recovery objectives and system health in real-time, assisting organizations in making informed decisions and simplifying governance processes to ensure ongoing compliance.
See More
Kyndryl Launches Intelligent Recovery Service for Enhanced Business Continuity
- Service Innovation: Kyndryl's Intelligent Recovery Service (KIRS) automates recovery processes and provides real-time visibility, helping organizations overcome cyber incidents and operational disruptions, significantly enhancing business continuity and regulatory compliance.
- Accelerated Recovery: Integrated with Kyndryl Bridge, KIRS enables large-scale recovery of critical systems across customer IT estates, reducing manual effort and speeding up system restoration, thus helping businesses respond more swiftly to complex regulatory environments.
- Real-Time Monitoring: The service offers real-time insights into customers' recovery objectives, system health, and resiliency posture, supporting informed decision-making and ongoing compliance while simplifying governance and oversight processes.
- Industry Applicability: KIRS addresses complex recovery challenges across various industries, supporting cloud platforms, containerized workloads, and databases, enabling organizations to develop flexible, customized recovery strategies to meet evolving business needs.
See More
Kyndryl Faces Securities Class Action Lawsuit
- Lawsuit Background: A securities class action lawsuit has been filed against Kyndryl Holdings, Inc. (NYSE: KD) on behalf of all individuals or entities who purchased its securities between August 7, 2024, and February 9, 2026, alleging significant misstatements in financial reports.
- Allegations Details: The complaint claims that the defendants failed to disclose material inaccuracies in Kyndryl's financial statements and that the company lacked adequate internal controls, which resulted in its inability to timely file the Quarterly Report for the quarter ending December 31, 2025, undermining investor confidence.
- Investor Action Required: Affected investors are urged to contact Gainey McKenna & Egleston law firm before the April 13, 2026, lead plaintiff motion deadline to represent other class members in the litigation.
- Legal Consultation Information: Investors seeking to understand their rights or interests regarding this class action can reach out to attorneys at Gainey McKenna & Egleston via phone or email for further legal advice and support.
See More
Kyndryl Faces Class Action Lawsuit Impacting Stock Price
- Class Action Notification: Kahn Swick & Foti, LLC has notified investors in Kyndryl Holdings, Inc. of a class action lawsuit due to alleged securities fraud occurring between August 7, 2024, and February 9, 2026, aimed at recovering losses for affected investors.
- 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 severely impact financial transparency and investor confidence.
- Stock Price Plunge: Following the lawsuit announcement, Kyndryl's stock price plummeted by 55%, dropping $12.90 to close at $10.59, reflecting significant market concerns regarding the company's financial health and operational integrity.
- Investor Action Recommendation: Affected Kyndryl investors have until April 13, 2026, to request to be appointed as lead plaintiff in the lawsuit, indicating that the ongoing legal challenges could have lasting implications on the company's financial outlook and investor relations.
See More
Kyndryl Faces Class Action for Securities Fraud Following Stock Plunge
- Lawsuit Background: Leading securities law firm Bleichmar Fonti & Auld LLP has filed a class action lawsuit against Kyndryl Holdings, Inc. and certain executives for securities fraud, alleging potential violations of federal securities laws that led to significant stock drops.
- Stock Plunge: On February 9, 2026, Kyndryl announced a delay in releasing its fiscal Q3 2026 financial statement due to an SEC review of its cash management practices, causing its stock price to plummet from $23.49 to $10.59 per share, a staggering 55% drop.
- Financial Mismanagement Allegations: The lawsuit claims that Kyndryl misrepresented its cash management practices and the drivers of its adjusted free cash flow metric, which misled investors about the company's financial health and could result in substantial investor losses.
- Legal Options for Investors: Investors are encouraged to apply to lead the case by April 13, 2026, with BFA offering representation on a contingency fee basis, meaning no upfront costs for shareholders, thereby reducing their legal risk.
See More
