By Colin Kellaher and Elias Schisgall
Shares of Kyndryl Holdings lost more than half their value after the company's chief financial officer left amid a review of accounting practices following an inquiry from the Securities and Exchange Commission
The information-technology-services infrastructure provider on Monday said finance chief David Wyshner had left the company, along with general counsel, Edward Sebold. The company also cut its guidance for the year after posting third-quarter results below Wall Street expectations.
Shares were down nearly 57% in recent trading to $10.18.
The New York-based company said its audit committee was reviewing its cash-management practices and related disclosures, including regarding the drivers of its adjusted free-cash-flow metric, as well as the efficacy of its internal control over financial reporting, according to a filing with the SEC. The review came after the SEC's enforcement division requested certain documents from the company.
Kyndryl said that while it doesn't expect the review to result in a restatement or other impact to its financial statements, it will delay filing its quarterly report with the SEC and expects to report material weaknesses in its internal control over financial reporting for fiscal 2025 and the first three quarters of fiscal 2026.
The company said it needs more time to finalize its quarterly report, which covers the fiscal third quarter ended Dec. 31, adding that it is developing a remediation plan that it will outline in the report.
Kyndryl Chief Executive Martin Schroeter declined to comment further on the company's earnings call. "The fact is we just can't comment until the examination is complete," he said. "The teams are working expeditiously so we can share a remediation plan."
He added that the company's fiscal 2028 goals remain intact.
For its latest quarter, Kyndryl posted an adjusted profit of 52 cents a share on revenue of $3.86 billion, shy of the 60 cents a share and $3.89 billion, respectively, that analysts had penciled in.
The company said it now expects its full-year revenue to fall by 2% to 3% in constant currency, after previously forecasting a 1% rise. It also cut its full-year guidance for adjusted pretax income and free cash flow.
Harsh Chugh, Kyndryl's global head of practices, corporate development and administration, has stepped in as interim chief financial officer, and Mark Ringes, deputy general counsel since 2024, will serve as interim general counsel. Both appointments went into effect Feb. 5.
Both Wyshner and Sebold had been in their posts at Kyndryl since 2021, the year the company was spun off from IBM.
Corrections & Amplifications
This was corrected on Feb. 10, 2026. Kyndryl, an information-technology-services infrastructure provider, on Monday said finance chief David Wyshner had left the company, along with general counsel, Edward Sebold. The original version misspelled his name as Wysher.
(END) Dow Jones Newswires
02-09-26 1022ET
