Kyndryl Holdings, Inc. (KD) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Technology / Software · as of Sep 24, 2026
Kyndryl Holdings, Inc. (KD)
A forensic read on Kyndryl Holdings, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-0.4
Distress distance
Clean
Earnings quality
3
Forensic signals
29.9
P / E (ttm)
16.9%
ROE
$2.6B
Market cap
0.2%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Kyndryl Holdings, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -0.4, placing it in the Distress zone. 3 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+51.7%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +51.7% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 22% of net operating assets, against an accruals ratio of 51.7%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
6.0%
FY2026
Return on invested capital.Return on invested capital is 6.0% in the latest fiscal year, against -1% in FY2024, having run between -0.8% and 7.7% across FY2024–FY2026 with no direction held. The capital base behind it grew +19% across FY2024–FY2026, from $4.6B to $5.4B, and the return did not fall doing it, so the dollars added over that window earned at least the -1% the older base was already earning.
+1.0%/yr
FY2024–FY2026
Share count.Diluted share count changed +2% over the last 2 years to FY2026 (+1.0%/yr). Roughly flat — buybacks ($304M) are about offsetting stock comp ($64M), not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.
Key fundamentals
Latest Revenue$15.09B
Revenue Growth YoY+0.2%
Revenue CAGR (2yr)-3.0%
Net Margin1.3%
Free Cash Flow$340.0M
Return on Equity16.9%
Debt / Equity2.64x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Kyndryl Holdings, Inc.'s actual 10-K/10-Q/8-K filings?