Kyndryl (NYSE:KD) Shares Gap Down on Disappointing Earnings

Kyndryl Holdings, Inc. (NYSE:KD) shares gapped down prior to trading on Monday following a dissappointing earnings announcement. The stock had previously closed at $23.49, but opened at $10.84. Kyndryl shares last traded at $10.94, with a volume of 15,823,072 shares.

The company reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.60 by ($0.08). Kyndryl had a net margin of 1.65% and a return on equity of 25.77%. The company had revenue of $3.86 billion during the quarter, compared to analysts’ expectations of $3.89 billion. During the same quarter last year, the business posted $0.51 earnings per share. The company’s revenue for the quarter was up .6% compared to the same quarter last year.

Key Kyndryl News

Here are the key news stories impacting Kyndryl this week:

• Positive Sentiment: Company highlights and liquidity cushion: Kyndryl reported Q3 results showing revenue growth in its Kyndryl Consult business and stated adjusted metrics; Seeking Alpha and other writeups note the company still holds meaningful cash and liquidity that could help navigate the near‑term stress. Looking At Kyndryl After A 50%+ Drop
• Neutral Sentiment: Analyst moves are mixed — some firms reaffirmed coverage while others cut ratings/targets; expect divergent views as more disclosure arrives. Finviz / The Fly coverage of analyst actions
• Neutral Sentiment: Investors can review the company’s Q3 earnings materials and call transcript for management commentary on guidance and cash flow drivers. Kyndryl 2026 Q3 Results – Earnings Call Presentation
• Negative Sentiment: Delayed filing and internal control concerns: Kyndryl said it will not timely file its quarterly Form 10‑Q and flagged anticipated material weaknesses in internal controls for multiple periods — a primary driver of the severe sell‑off. Kyndryl delays quarterly filing, flags financial reporting concerns (Reuters)
• Negative Sentiment: Senior finance and legal departures: The CFO and General Counsel left effective immediately amid the accounting review, increasing uncertainty about near‑term remediation and reporting. Kyndryl Finance Chief Wyshner Leaves Amid Accounting Review (WSJ)
• Negative Sentiment: Widespread securities investigations: Multiple law firms have opened claims/investigations and are soliciting shareholders after the disclosures; this raises the potential for litigation costs and distractions. Kyndryl Shares Crater Amid Late Filing … – Hagens Berman (Business Wire)
• Negative Sentiment: Earnings miss and guidance cut: The company missed Q3 EPS and revenue estimates and trimmed FY revenue guidance, compounding concerns about operating performance and free cash flow. KYNDRYL REPORTS THIRD QUARTER FISCAL 2026 RESULTS (PR Newswire)

Analyst Upgrades and Downgrades

A number of brokerages have commented on KD. Scotiabank assumed coverage on Kyndryl in a report on Tuesday, January 27th. They set an “outperform” rating on the stock. Guggenheim downgraded shares of Kyndryl from a “buy” rating to a “neutral” rating in a research note on Tuesday. Zacks Research upgraded shares of Kyndryl from a “strong sell” rating to a “hold” rating in a research note on Wednesday, November 12th. Susquehanna set a $35.00 target price on shares of Kyndryl in a report on Thursday, November 6th. Finally, Oppenheimer reiterated a “market perform” rating on shares of Kyndryl in a report on Monday. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Kyndryl has a consensus rating of “Hold” and an average price target of $32.80.

Insider Buying and Selling at Kyndryl

In other news, SVP Vineet Khurana sold 6,641 shares of the stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $26.69, for a total transaction of $177,248.29. Following the completion of the transaction, the senior vice president directly owned 59,708 shares in the company, valued at $1,593,606.52. This represents a 10.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 1.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Kyndryl

Hedge funds and other institutional investors have recently modified their holdings of the company. Assetmark Inc. raised its holdings in Kyndryl by 75.3% in the 2nd quarter. Assetmark Inc. now owns 775 shares of the company’s stock valued at $33,000 after buying an additional 333 shares during the last quarter. Smartleaf Asset Management LLC lifted its stake in shares of Kyndryl by 192.0% in the third quarter. Smartleaf Asset Management LLC now owns 1,171 shares of the company’s stock valued at $35,000 after buying an additional 770 shares in the last quarter. NBT Bank N A NY lifted its holdings in shares of Kyndryl by 3,220.0% in the fourth quarter. NBT Bank N A NY now owns 1,328 shares of the company’s stock valued at $35,000 after purchasing an additional 1,288 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. raised its holdings in shares of Kyndryl by 4,475.0% in the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,464 shares of the company’s stock valued at $39,000 after purchasing an additional 1,432 shares during the last quarter. Finally, Flagship Harbor Advisors LLC bought a new position in Kyndryl during the fourth quarter valued at about $39,000. Institutional investors and hedge funds own 71.53% of the company’s stock.

Kyndryl Trading Up 4.9%

The company has a debt-to-equity ratio of 2.24, a current ratio of 1.02 and a quick ratio of 1.02. The firm has a market capitalization of $2.54 billion, a P/E ratio of 10.58 and a beta of 1.84. The firm has a fifty day simple moving average of $25.23 and a two-hundred day simple moving average of $28.09.

Kyndryl Company Profile

Kyndryl (NYSE: KD) is a global managed infrastructure services provider formed in November 2021 through the spin-off of IBM’s Managed Infrastructure Services business. The company designs, builds, manages and modernizes critical information technology systems for enterprises worldwide. Kyndryl’s core offerings include cloud migration and management, network and edge computing solutions, digital workplace services and IT resiliency and security capabilities.

With a workforce of approximately 90,000 professionals and operations in more than 60 countries, Kyndryl serves clients across a broad range of industries, including financial services, telecommunications, healthcare, manufacturing and retail.