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

Shares of Kyndryl Holdings, Inc. (NYSE:KD) gapped down before the market opened on Monday after the company announced weaker than expected quarterly earnings. 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 EPS for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.08). Kyndryl had a return on equity of 25.76% and a net margin of 2.71%.The firm had revenue of $3.86 billion during the quarter, compared to analyst estimates of $3.89 billion. During the same quarter in the previous year, the business earned $0.51 earnings per share. Kyndryl’s revenue for the quarter was up .6% compared to the same quarter last year.

Trending Headlines about Kyndryl

Here are the key news stories impacting Kyndryl this week:

• Positive Sentiment: Kyndryl reported adjusted EBITDA of $696M and highlighted double‑digit revenue growth in its Kyndryl Consult business, showing pockets of profitable growth and healthy alliance momentum. KYNDRYL REPORTS THIRD QUARTER FISCAL 2026 RESULTS
• Neutral Sentiment: Top‑line was essentially flat: revenue of $3.86–$3.9B (up ~0.6% year‑over‑year), which reduces the risk of a sharp downshift in demand but is not strong enough to offset other negatives. Press Release / Slide Deck
• Negative Sentiment: Earnings missed consensus — KD reported $0.52 EPS vs. ~$0.60 expected, missing estimates and undercutting near‑term investor expectations for profitability. Zacks: KD Lags Q3 Earnings
• Negative Sentiment: Management cut FY‑2026 revenue guidance to roughly $14.6–$14.8B versus a ~$15.6B consensus, signaling lower growth ahead and raising downside risk to estimates. (Company guidance released with results.)
• Negative Sentiment: Kyndryl filed a Form 12b‑25 to delay its 10‑Q, disclosing it expects material weaknesses in internal control over financial reporting for multiple periods — a major governance and audit red flag that increases regulatory and restatement risk. Reuters: Kyndryl delays quarterly filing
• Negative Sentiment: Chief Financial Officer David Wyshner has left amid the accounting review, adding short‑term leadership uncertainty in finance during a control investigation. WSJ: CFO Leaves

Analyst Ratings Changes

KD has been the subject of a number of research analyst reports. Guggenheim decreased their target price on Kyndryl from $30.00 to $28.00 and set a “buy” rating for the company in a research note on Tuesday, February 3rd. Scotiabank began coverage on Kyndryl in a research note on Tuesday, January 27th. They set an “outperform” rating for the company. Zacks Research raised shares of Kyndryl from a “strong sell” rating to a “hold” rating in a research note on Wednesday, November 12th. JPMorgan Chase & Co. downgraded shares of Kyndryl from an “overweight” rating to an “underweight” rating and set a $16.00 price objective for the company. in a research report on Monday. Finally, Susquehanna set a $35.00 price objective on shares of Kyndryl in a research report on Thursday, November 6th. Four equities research analysts have rated the stock with a Buy rating, three 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 a consensus target price of $32.80.

Insider Buying and Selling at Kyndryl

In related news, SVP Vineet Khurana sold 6,641 shares of the business’s stock in a transaction on Friday, December 5th. The shares were sold at an average price of $26.69, for a total transaction of $177,248.29. Following the transaction, the senior vice president directly owned 59,708 shares in the company, valued at approximately $1,593,606.52. The trade was a 10.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Kyndryl

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its stake in shares of Kyndryl by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 28,331,302 shares of the company’s stock valued at $752,479,000 after buying an additional 144,625 shares during the period. Dimensional Fund Advisors LP lifted its position in shares of Kyndryl by 4.1% during the 3rd quarter. Dimensional Fund Advisors LP now owns 4,607,829 shares of the company’s stock valued at $138,375,000 after acquiring an additional 180,237 shares during the period. Geode Capital Management LLC grew its holdings in shares of Kyndryl by 5.0% during the 2nd quarter. Geode Capital Management LLC now owns 4,277,559 shares of the company’s stock worth $179,515,000 after purchasing an additional 203,986 shares in the last quarter. AQR Capital Management LLC raised its stake in Kyndryl by 386.2% in the third quarter. AQR Capital Management LLC now owns 4,187,177 shares of the company’s stock valued at $125,113,000 after purchasing an additional 3,326,025 shares in the last quarter. Finally, Zimmer Partners LP raised its stake in Kyndryl by 7.4% in the third quarter. Zimmer Partners LP now owns 2,227,904 shares of the company’s stock valued at $66,904,000 after purchasing an additional 153,247 shares in the last quarter. Institutional investors own 71.53% of the company’s stock.

Kyndryl Price Performance

The firm has a market cap of $2.51 billion, a P/E ratio of 6.51 and a beta of 1.84. 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 company’s 50-day moving average is $25.83 and its two-hundred day moving average is $28.48.

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.