Kyndryl is facing significant hurdles. The CFO and the head of legal affairs left suddenly, while the Securities and Exchange Commission (SEC) in the US has launched an investigation. Kyndryl is trying to calm the situation, but the company’s stock value fell by 55 percent in a single day.
Kyndryl received document requests from the US stock market regulator SEC regarding cash management, related reporting, and internal controls. The company reported this in a registration document on Monday. It is also conducting an accounting investigation through the audit committee of the board of directors.
The share price plummeted from $23.60 to $10.59, a drop of 55 percent. At the time of writing, there are signs of a very slight recovery to $11.12. CEO Martin Schroeter emphasized during a conference call that Kyndryl does not expect any impact on its financial statements. “We are cooperating with the SEC,” Schroeter said. “Due to the ongoing nature of these matters, we cannot comment further.”
Exodus in management
Immediately after the SEC filing, Kyndryl announced major changes to its management team. CFO David Wyshner, who had been with the company since September 2021, left abruptly. Harsh Chugh was appointed interim CFO. General Counsel Edward Sebold also stepped down, replaced by interim Mark Ringes.
Vineet Khurana, global controller, took on another unspecified position within Kyndryl. Bhavna Doegar became interim corporate controller. A month earlier, Kyndryl had already announced that Chief HR Officer Maryjo Charbonnier was retiring. In short: a veritable revolving door of board members, while the turmoil in the Netherlands over the takeover of critical supplier Solvinity is far from over. DigiD, the country’s digital identification system to handle allowances, taxes, pensions and student debt, among other things.
Back in the US, Kyndryl is also postponing the submission of its 10-Q quarterly report. Several law firms have launched investigations into possible investor deception regarding accounting rules and reporting. Meanwhile, the quarterly figures are not so negative after all, with revenue of $3.86 billion in Q4 2025 compared to $3.74 billion in Q4 2024.
Focus on AI and private cloud
Kyndryl continues to invest in AI capabilities through the Kyndryl Bridge platform and agentic AI frameworks. The company is also building AI innovation labs to deliver new technology to customers on a larger scale. Private cloud is another growth pillar. Demand for private cloud environments is increasing due to AI, data sovereignty, and security requirements. Kyndryl expects to see substantial new demand here.
Schroeter emphasized that Kyndryl is addressing the challenges. “We remain focused on delivering our business objectives, profitable growth, and innovative services for customers.” Whether investors share that confidence after the SEC filing and exodus in the top team remains to be seen.
It is also possible that the Solvinity acquisition will be reversed or delayed by the Dutch government. No decision has been made yet, but lawsuits and investigations are ongoing to reach a verdict.
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