Forensic Analysis · Technology / Software · as of Aug 11, 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.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-0.4
Distress distance
Clean
Earnings quality
4
Forensic signals
15.3
P / E (ttm)
16.9%
ROE
$3.0B
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). 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 an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads -0.4, placing it in the Distress zone. 4 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 total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 22% of net operating assets, diverging from the balance-sheet accrual read.
6.0%
FY2026
Return on invested capital.Return on invested capital is 6.0% in the latest fiscal year and rising from -12% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+1.0%/yr
FY2023–FY2026
Share-count dilution.Diluted share count changed +3% over the last 3 years to FY2026 (+1.0%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.0% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~3%.
$469M
FY2021–FY2021
Goodwill impairments.Took $469M of goodwill writedowns across 1 year (FY2021 ($469M)). Writedowns mean past acquisitions underperformed what was paid for them.
Key fundamentals
Latest Revenue$15.09B
Revenue Growth YoY+0.2%
Revenue CAGR (3yr)-3.9%
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?