Kyndryl Issues Statement in Response to Misleading Report

Rhea-AI Summary

Kyndryl (NYSE: KD), the world's largest IT infrastructure services provider, has issued a strong rebuttal to a short seller report published on March 27, 2025. The company categorically rejected the report's claims, describing them as inaccurate and deliberately misleading.

The company defended its accounting practices and disclosures, stating they are correct and comply with all applicable reporting requirements. Kyndryl emphasized that they were not given an opportunity to address the claims before the report's publication.

Kyndryl maintains its position as a company focused on profitable growth, serving enterprise customers across more than 60 countries with complex, mission-critical information systems services.

Positive

• Company maintains strong market position as world's largest IT infrastructure services provider
• Management affirms continued execution of growth strategy and profitable growth trajectory

Negative

• Company faced allegations from short sellers questioning its practices
• Stock potentially vulnerable to short-term price manipulation

News Market Reaction – KD

-5.11%

1 alert

-5.11% News Effect

On the day this news was published, KD declined 5.11%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, March 27, 2025 /PRNewswire/ -- Kyndryl Holdings, Inc. (NYSE: KD), the world's largest IT infrastructure services provider, today issued a statement in response to a short seller report.

"The short seller report issued this morning in relation to Kyndryl contains claims that are inaccurate and deliberately misleading.  

Kyndryl rejects in the strongest possible terms the conclusion reached within the report, which was clearly designed to manipulate the company's stock for the short seller's benefit.

We believe that our accounting and disclosures are correct, accurate and in accordance with all applicable reporting requirements. 

Had we been afforded the opportunity to speak to this firm, we would have pointed out the many inaccuracies and falsehoods contained in this so-called analysis.

Kyndryl is proud of its transformation into a company that is driving profitable growth, and we remain focused on continuing to execute our growth strategy."

About Kyndryl
Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider, serving thousands of enterprise customers in more than 60 countries. The Company designs, builds, manages and modernizes the complex, mission-critical information systems that the world depends on every day.  For more information, visit www.kyndryl.com.

Kyndryl Investor Contact:
investors@kyndryl.com

Kyndryl Media Contact:
press@kyndryl.com

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SOURCE Kyndryl

FAQ

What allegations did the short seller report make against Kyndryl (KD)?

The specific allegations were not detailed in Kyndryl's press release, though the company stated the claims were inaccurate and misleading.

How did Kyndryl (KD) respond to the short seller report on March 27, 2025?

Kyndryl strongly rejected the report's claims, defended its accounting practices as accurate and compliant, and stated the report was designed to manipulate the stock price.

What is Kyndryl's (KD) current market position in IT infrastructure services?

Kyndryl is the world's largest IT infrastructure services provider, operating in over 60 countries and serving thousands of enterprise customers.

Was Kyndryl (KD) contacted by the short seller before the report's publication?

No, according to Kyndryl's statement, they were not given an opportunity to address the claims before the report's publication.