Kyndryl Stock Plummets 50%: CFO Exit and SEC Probe Spark Sell-Off

The Kyndryl Holdings, Inc. (NYSE: KD) stock experienced a historic collapse on 09 February 2026, with shares plummeting more than 50% following the disclosure of an internal accounting investigation and the sudden departure of its Chief Financial Officer.

Accounting Scandal & Executive Shake-up

The massive sell-off was triggered by Kyndryl’s announcement that its audit committee is reviewing cash management, internal financial controls, and disclosures. This review follows voluntary document production to the U.S. Securities and Exchange Commission (SEC). Simultaneously, the company announced the departure of CFO David Wyshner, further rattling investor confidence.

Due to the ongoing investigation, Kyndryl has delayed the filing of its quarterly Form 10-Q. Several law firms, including Block & Leviton and BFA Law, have already announced investigations into potential securities fraud on behalf of shareholders.

Q3 Fiscal 2026 Earnings Miss

The accounting news overshadowed the company’s third-quarter fiscal 2026 results, which also failed to meet market expectations:

• Revenue: $3.9 billion (3% year-over-year growth, but below the $3.94 billion forecast).
• Earnings Per Share (EPS): $0.52 (Missing analyst estimates by 22.39%).
• Net Income: $57 million.
• Adjusted EBITDA: $696 million.

Revised Outlook

Kyndryl has significantly lowered its financial guidance for the remainder of the fiscal year. The company now anticipates annual revenue to decrease by 2% to 3% on a constant currency basis. Adjusted pretax income is now forecasted in the range of $575 million, a sharp “reset” from previous projections that has led analysts to slash price targets. Guggenheim, for instance, lowered its target to $28.00 CAD ($21.00 USD) just prior to the full extent of the crash being realized.

Data accurate as of 09 February 2026. Market values expressed in CAD where applicable based on current exchange rates.