Kyndryl Holdings Faces Internal Review and SEC Inquiry

Shares plummet over 54% as company delays quarterly filing and announces executive departures

Published on Feb. 9, 2026

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Kyndryl Holdings, Inc. (NYSE: KD) disclosed it is conducting an internal review of its accounting practices following an inquiry from the Securities and Exchange Commission (SEC). The company stated its Audit Committee will investigate cash management practices, internal control over financial reporting, and other matters, leading to a delay in its quarterly filing. Kyndryl also announced the departures of its Chief Financial Officer and General Counsel, effective immediately.

Why it matters

The internal review and SEC inquiry raise concerns about Kyndryl's financial reporting and corporate governance, potentially impacting investor confidence and the company's future. The significant drop in stock price highlights the financial risks for shareholders.

The details

Kyndryl Holdings stated it will delay the filing of its Form 10-Q for the quarter ended December 31, 2025 and expects to report material weaknesses in its internal control over financial reporting for the period covered in the report, as well as the full fiscal year ended March 31, 2025, and the first two quarters of fiscal year 2026.

  • On February 9, 2026, Kyndryl Holdings disclosed the internal review and SEC inquiry.
  • The company's Chief Financial Officer, David Wysher, and General Counsel, Edward Sebold, have both left the company, effective immediately.

The players

Kyndryl Holdings, Inc.

A publicly traded company that provides information technology (IT) infrastructure services.

Securities and Exchange Commission (SEC)

The federal agency responsible for regulating the securities industry, including the enforcement of federal securities laws.

David Wysher

The former Chief Financial Officer of Kyndryl Holdings.

Edward Sebold

The former General Counsel of Kyndryl Holdings.

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What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.