Forensic Analysis · Software & SaaS · as of Nov 8, 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
-0.6
Distress distance
Clean
Earnings quality
2
Forensic signals
16.5%
ROE
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 (auditor quality, say on pay, board independence, going concern). 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 -0.6, placing it in the Distress zone. 2 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.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
6.6%
FY2026
Return on invested capital.Return on invested capital is 6.6% in the latest fiscal year and rising across FY2024–FY2026 from -0.8%. After-tax operating profit was ($36M) in FY2024 and $327M in FY2026. The capital base behind it went from $4.6B in FY2024 to $5.0B in FY2026 (+8%), while the revenue it carried went from $16.1B to $15.1B. FY2024's operating profit carried a $174M restructuring charge that alone took about 3.0 points off that year's return, so about 3.0 of the 7.4-point rise across FY2024–FY2026 is that charge leaving the base year rather than the capital earning more. FY2025's operating profit carried a $162M restructuring charge that alone took about 2.3 points off that year's return; FY2025 sits between the two ends of FY2024–FY2026, so the charge shapes the path between them without moving the change across it.
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 Equity16.5%
Debt / Equity2.64x
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