Kyndryl Holdings, Inc. (KD) Securities Class Action Litigation

Introduction

Securities class action litigation has been filed on behalf of investors who purchased or otherwise acquired the publicly traded securities of Kyndryl Holdings, Inc. (“Kyndryl”) (NYSE: KD) between August 1, 2024 and February 9, 2026, inclusive (the “Class Period”).

If you purchased or acquired the publicly traded securities of Kyndryl during the Class Period, you may move the Court for appointment as lead plaintiff by no later than April 13, 2026.

A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

Kyndryl investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should complete the form below, text or email investorinfo@lchb.com, or call Lieff Cabraser partner Sharon M. Lee at 1-800-541-7358.

Background on the Kyndryl Securities Class Litigation

Kyndryl, headquartered in New York City, specializes in creating, manufacturing, overseeing, and developing large-scale information systems.

The action alleges that, throughout the Class Period, defendants made false and/or misleading statements about Kyndryl’s reported free cash flow metrics and improperly claimed those metrics demonstrated the strength of the Company’s financial condition and prospects. Defendants failed to disclose that Kyndryl’s reported cash flow depended on undisclosed and unsustainable cash management practices that concealed Kyndryl’s true financial condition and prospects, and material weaknesses in its internal controls over financial reporting.

The truth began to emerge on August 4, 2025, after markets closed, when Kyndryl announced its financial results for the first quarter of fiscal 2026, reporting a revenue of $3.743 billion and free cash flow use of $222 million, missing analysts’ expectations of $3.788 billion and $219 million, respectively. Kyndryl’s Chief Financial Officer David Wyshner assured investors that the Company was committed to “delivering significant margin expansion and generating free cash flow growth” with a “solid game plan” in place to “drive [Kyndryl’s] strategic progress.” On this news, the price of Kyndryl common stock fell $7.76 per share, or 21.1%, from a closing price of $36.70 on August 4, 2025, to close at $28.94 on August 5, 2025, on extremely heavy trading volume.

On February 9, 2026, before markets opened, Kyndryl announced it would not be able to timely file its Form 10-Q for the third quarter of fiscal 2026 due to anticipated internal control weaknesses in its “cash management practices.” Kyndryl also announced that it had received a document request from the SEC, and that CFO Wyshner and Kyndryl’s General Counsel Edward Sebol departed abruptly. In addition, Kyndryl announced its financial results for the third quarter of fiscal 2026, reporting adjusted earnings per share (“EPS”) of $0.52 and revenue of $3.86 billion, missing analysts’ expectations of an EPS of $0.61 and revenue of $3.89 billion, and lowered its fiscal 2026 full-year guidance for free cash flow from $550 million to a range of $325 million to $375 million. On this news, the price of Kyndryl stock fell $12.90 per share, or 55%, from a closing price of $23.49 on February 6, 2026, to close at $10.59 on February 9, 2026, on extremely heavy trading volume.