Kyndryl Holdings Incorporation ( (KD) ) has released a notification of late filing.
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Kyndryl Holdings, Inc. has filed a Form 12b-25 to notify investors that it will delay its Form 10-Q (Quarter Report) for the quarter ended December 31, 2025. The company says it cannot complete the filing on time without unreasonable effort and expense.
The delay stems from an ongoing review led by the Board’s Audit Committee into Kyndryl’s cash management practices, related disclosures, and the effectiveness of internal control over financial reporting. This review was triggered by voluntary document requests from the SEC’s Division of Enforcement.
Because this review is still in progress, Kyndryl needs more time to finalize the Form 10-Q (Quarter Report), including its internal control assessment. The company did not commit to the usual five-day grace window, leaving the exact filing date uncertain, but indicates the report will be filed after the review and related procedures are completed.
Management currently does not expect any impact on the company’s consolidated balance sheet, income statement, comprehensive income (loss), cash flow statement, or statement of equity. The company also does not anticipate significant changes in operating results versus the same quarter a year earlier, though it cautions that all such expectations are forward-looking.
However, Kyndryl plans to disclose material weaknesses in internal control over financial reporting for the quarter in question, the full fiscal year ended March 31, 2025, and the first two quarters of fiscal 2026. These weaknesses relate to the strength and effectiveness of certain functions, including information and communication controls and tone at the top.
As a result, Kyndryl warns that its prior assessment of internal control effectiveness as of March 31, 2025, and the related opinion from PricewaterhouseCoopers LLP in the last Form 10-K (Yearly Report), should no longer be relied upon. The company is developing a remediation plan to strengthen controls, which will be detailed in the delayed Form 10-Q (Quarter Report).
The notification emphasizes that many statements about timing, internal controls and the SEC matter are forward-looking and subject to risks and uncertainties. Kyndryl refers investors to its existing risk factor disclosures and notes it has no obligation to update these statements except as required by law.
The late-filing notice is signed on behalf of Kyndryl Holdings, Inc. by Chairman and Chief Executive Officer Martin J. Schroeter, dated February 9, 2026. This signature underscores management’s responsibility for the disclosure and signals ongoing efforts to address the control issues and complete the quarterly filing.
The most recent analyst rating on (KD) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Kyndryl Holdings Incorporation stock, see the KD Stock Forecast page.
Spark’s Take on KD Stock
According to Spark, TipRanks’ AI Analyst, KD is a Neutral.
Kyndryl Holdings’ overall stock score reflects a mix of financial recovery and strategic growth initiatives, tempered by technical weaknesses and revenue challenges. The company’s strong earnings call and reasonable valuation are positive, but the declining revenue and high leverage remain significant risks.
To see Spark’s full report on KD stock, click here.
More about Kyndryl Holdings Incorporation
Average Trading Volume: 2,239,423
Technical Sentiment Signal: Sell
Current Market Cap: $5.37B
For an in-depth examination of KD stock, go to TipRanks’ Overview page.