Kyndryl (NYSE: KD) shares plunged more than 56% intra-day on Monday after the IT infrastructure services company disclosed that it would delay filing its December-quarter financial report due to material weaknesses in internal controls over financial reporting.
The company said the identified weaknesses extended across the fiscal year ended March 2025, as well as the first and second quarters of fiscal 2026. Despite the issues, Kyndryl stated that it did not expect any impact to its balance sheets, income statements, cash flow statements, or equity statements.
Alongside the disclosure, Kyndryl announced several executive changes. Chief Financial Officer David Wyshner departed the company, with Harsh Chugh named interim CFO effective immediately. Chugh currently serves as global head of corporate development and administration and previously held the role of Chief Operating Officer.
Global Controller Vineet Khurana also stepped down, and Bhavna Doegar, senior vice president of Finance and Strategy, was appointed interim corporate controller.
When asked whether the executive departures were related to the ongoing financial reporting review, Kyndryl declined to comment. The company also released its third-quarter results and lowered its revenue outlook for fiscal 2026.
