Kyndryl Holdings Inc. (KD) experienced a significant pre-market decline of 8.85% following a series of concerning announcements regarding its financial reporting and internal controls.

The IT services company disclosed that it will delay filing its quarterly report for the period ended December 31, 2025, citing an ongoing review by its Audit Committee into cash management practices and internal controls. This review was initiated following voluntary document requests from the U.S. Securities and Exchange Commission's Division of Enforcement.

In a separate announcement, Kyndryl stated it anticipates material weaknesses in its internal control over financial reporting for the first two quarters of fiscal year 2026. The company also indicated that its annual report on Form 10-K for the fiscal year ended March 31, 2025, should no longer be relied upon. These developments were accompanied by news of leadership changes, with David Wyshner departing as Chief Financial Officer and Harsh Chugh being appointed as Interim CFO.