Kyndryl to review accounting practices as several execs leave
Summary
Kyndryl has launched a review of its accounting and cash-management disclosures after reporting Q3 results that missed analyst expectations and following a voluntary document request from the US Securities and Exchange Commission. The company said the review covers adjusted free cash flow metrics, internal control over financial reporting and related disclosures, and that finalisation of its Quarterly Report will be delayed as a result.
The announcement accompanied a wave of senior departures: CFO David Wyshner and general counsel Edward Sebold have stepped down, along with the senior VP and global controller Vineet Khurana. Interim replacements were named: Harsh Chugh (interim CFO), Mark Ringes (interim general counsel) and Bhavna Doegar (interim corporate controller). Investors reacted harshly, sending the share price down more than 55% on the day.
Key Points
- Kyndryl is reviewing cash management practices and disclosures, including its adjusted free cash flow metric.
- The company received a voluntary document request from the US SEC and is cooperating with regulators.
- Q3 revenue rose 3% year‑on‑year to $3.86bn but fell short of analyst forecasts; EPS also missed expectations.
- Several senior executives have left: CFO David Wyshner, general counsel Edward Sebold, and global controller Vineet Khurana.
- Interim appointments: Harsh Chugh (CFO), Mark Ringes (general counsel), Bhavna Doegar (corporate controller).
- Shares plunged over 55% on the news, signalling a sharp loss of investor confidence.
- Management says it does not currently expect a restatement but has delayed the Quarterly Report while the review continues.
- Context: Kyndryl was spun out from IBM in 2021 and has faced prior scepticism about win rates and consulting growth.
Context and relevance
This matters if you follow enterprise IT services, vendor risk or corporate governance. An SEC document request plus multiple senior departures is a material governance event: it can affect customer confidence, deal momentum and the ability to execute a transformation away from low‑margin legacy services. The outcome of the accounting review will influence investor sentiment and Kyndryl’s roadmap for AI, sovereign cloud and consulting growth.
Why should I read this?
Short version: big exec exits, an SEC request and a brutal 55% share plunge — that’s not just gossip. If you buy, sell or rely on large IT services firms, this could change contract risk, partner stability and market perceptions. We’ve read the detail so you don’t have to dig through filings and press statements.
Author style
Punchy: this is significant — governance, numbers and leadership all flagged at once. If Kyndryl’s controls and disclosures aren’t sorted quickly, the business story it’s been selling (margin improvement and cloud/AI pivot) will be harder to believe.