revenue $15.1B, net income $198.0M. Kyndryl discloses material weaknesses in controls, SEC investigation, and buyback

Filed May 29, 2026 · Period ending March 31, 2026 · Compared to 10-K May 30, 2025 · ~2 min read

Key Changes

• high

  Company identified three material weaknesses in internal controls: senior finance executives failed to set appropriate tone at the top and lacked transparency with CEO and Board regarding disclosure processes (including cash management practices deferring vendor payments); ineffective controls over information and communication in the disclosure process. Auditor reversed prior year's clean opinion to adverse.

  Controls and Procedures verify on EDGAR →
• high

  SEC Enforcement is investigating the company's cash management practices, related disclosures, and the efficacy of internal controls. The matter is ongoing and the outcome cannot be predicted. Three interim executives (CFO, General Counsel, Corporate Controller) were appointed in February 2026.

  MD&A: SEC Investigation verify on EDGAR →
• high

  Net income fell $53M to $198M as the prior year's $138M after-tax gain from the SIS platform sale in Canada did not recur. Operating efficiencies partially offset the decline. Effective tax rate rose from 41.9% to 52.1% due to non-recurring, non-cash tax accruals from refinement of certain tax positions in Q4 FY26.

  MD&A: Net Income verify on EDGAR →