Why Kyndryl Stock Crashed This Week

By Keith Noonan – Feb 15, 2026 at 9:23PM ESTKey PointsKyndryl's fiscal Q3 results wound up being weaker than Wall Street anticipated. The company slashed its sales and free-cash-flow targets for the current fiscal year. These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: KDKyndrylMarket Cap$2.8BToday's Changeangle-down(7.89%) $0.90Current Price$12.23Price as of February 13, 2026 at 3:58 PM ETKyndryl's recent quarterly report arrived with some terrible news for investors.Kyndryl (KD +7.89%) stock plummeted over the last week of trading. The company's share price plunged 47.9% over the period. Meanwhile, the S&P 500 declined 1.4%, and the Nasdaq Composite declined 2.1%. Kyndryl released its latest quarterly report this week, and it would be an understatement to say that investors were disappointed with the results. In addition to sales and earnings that came in below Wall Street's targets, the company also lowered its forward guidance. Image source: Getty Images. Kyndryl's fiscal Q3 results were a dud On Feb. 9, Kyndryl published results for the third quarter of its 2026 fiscal year -- a period which ended Dec. 31. The business recorded non-GAAP (adjusted) earnings per share of $0.52 on sales of $3.86 billion. Meanwhile, the average analyst estimate had called for a per-share profit of $0.60 and sales of $3.91 billion. While the company's Kyndryl Consult business grew sales 24% year over year in the quarter, it wasn't enough to stop overall revenue from falling short of expectations. Margins for the period also came in softer than anticipated. ExpandNYSE: KDKyndrylToday's Change(7.89%) $0.90Current Price$12.23Key Data PointsMarket Cap$2.8BDay's Range$11.05 - $12.3952wk Range$10.10 - $44.20Volume200KAvg Vol4.1MGross Margin35.77% Kyndryl's new full-year guidance was a shocker In conjunction with its fiscal Q3 report, Kyndryl lowered its full-year guidance. The company now expects free cash flow for the fiscal year to be between $325 million and $375 million -- down from its previous forecast for free cash flow of roughly $550 million. Meanwhile, constant-currency sales are now projected to decline between 2% and 3% this year. Previously, the company had forecasted constant-currency growth of 1%. Kyndryl's updated forecasts for the fiscal year suggest substantial performance deterioration for the business in the current quarter. While the company reiterated previous targets issued for the 2028 fiscal year, the steep drop-off in sales and free cash flow has caused investors to lose confidence. Read NextFeb 9, 2026 •By Josh Kohn-LindquistStock Market Today, Feb. 9: Kyndryl Share Price Halved After Earnings Miss and Delayed FilingFeb 9, 2026 •By James BrumleyWhy Kyndryl Stock Was More Than Halved On MondayNov 6, 2025 •By Motley Fool YouTubeKyndryl: A Potential Market Beater or Just Another IT Stock?Sep 13, 2025 •By Anders Bylund1 Cheap Tech Stock to Buy Right NowAug 15, 2025 •By Scott LevineCould This Lesser-Known AI Stock Be the Next Big Winner?Mar 27, 2025 •By Lou WhitemanWhy Kyndryl Holdings Stock Is Down Big TodayAbout the AuthorKeith Noonan is a contributing writer at The Motley Fool covering technology, consumer goods, and other sectors. He holds a bachelor’s degree in English from Boston College.TMFNoonsStocks MentionedKyndrylNYSE: KD$12.23 (+7.89%) $+0.90S&P 500 IndexSNPINDEX: ^GSPC$6836.17 (+0.05%) $+3.41NASDAQ Composite IndexNASDAQINDEX: ^IXIC$22546.67 (0.22%) $50.48*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.