Kyndryl delays quarterly filing, flags financial reporting concerns

Feb 9 (Reuters) - Software provider Kyndryl KD.N on Monday delayed the filing of its quarterly report, saying it anticipates material weaknesses in its internal control over financial reporting for multiple periods, including the first two quarters of fiscal 2026.

Shares of the company tumbled 38% in premarket trading.

Separately, the company also announced the departure of its finance chief David Wyshner and the stepping down of Vineet Khurana as global controller, effective immediately. A corporate controller is typically the chief accountant of a company.

Kyndryl appointed Harsh Chugh as its interim CFO and Bhavna Doegar as interim corporate controller.

Chugh had served as the company's chief operating officer and previously held senior roles at PlanSource Benefits Administration and International Business Machines, according to the company.

Kyndryl said it would miss the deadline to file its quarterly report after its audit committee began reviewing cash management practices, related disclosures and internal controls following voluntary document requests from the U.S. Securities and Exchange Commission's enforcement division.