Overview
- Kyndryl’s audit committee is reviewing cash management practices, disclosures including the drivers of adjusted free cash flow, and the effectiveness of internal control over financial reporting.
- The company expects to report material weaknesses covering the fiscal year ended March 2025 and the first two quarters of fiscal 2026.
- CFO David Wyshner and General Counsel Edward Sebold departed effective immediately, with Harsh Chugh named interim CFO, Bhavna Doegar interim corporate controller, and Mark Ringes interim general counsel as Vineet Khurana stepped down as controller.
- Shares fell roughly 50% to 57% following the disclosures, and shareholder-rights firm Hagens Berman opened an investigation into potential investor misrepresentation.
- Guidance was cut, with constant-currency revenue now forecast to decline 2% to 3% for fiscal 2026 and adjusted pretax income to $575 million–$600 million with free cash flow of $325 million–$375 million, and the company told investors not to rely on prior internal-control assessments or PwC’s opinion in its fiscal 2025 annual report.