IBM Faces Pressure as Confluent Acquisition Clears Hurdle and Kyndryl Audit Casts Shadow

IBM?s shares came under notable pressure as the Confluent deal cleared a major regulatory hurdle while salvos of concern around Kyndryl?s finances rose to the surface. On Feb. 11, 2026, IBM stock fell about 6.5% in a single session and closed at $272.81, with trading volume nearly doubling to around 7.6 million shares.

Confluent?s investors sign off on the deal

• On Feb. 12, 2026, shareholders of Confluent approved the proposed acquisition in a special meeting. SEC filings show 687.9 million votes in favor and 340,000 against, effectively securing the transaction.
• IBM agreed to pay $31 per share in cash, representing a 34% premium to the stock?s level before the December 2025 announcement. The financing will be drawn from IBM?s existing liquidity.
• The deal is slated to close mid-2026, subject to the remaining regulatory clearances.

Key deal facts

• Enterprise value: $11 billion
• Cash per share: $31
• Voting results: 687.9 million in favor
• Planned close: mid-2026
• Financing: from IBM?s existing liquidity

Why Confluent matters to IBM

• Strategic objective: The acquisition is designed to bolster IBM?s position in the real-time data streaming market. Confluent operates a streaming platform built on Apache Kafka, which IBM intends to leverage as a foundation for enterprise AI applications.
• Market potential: Confluent estimates the total addressable market at about $100 billion.
• Financial impact: The transaction is expected to boost IBM?s adjusted EBITDA in the first year after closing and to improve free cash flow in the second year.
• Leadership move: Confluent?s CEO, Jay Kreps, is set to move to IBM following the deal.

Kyndryl?s setbacks cast a shadow

• Concurrently, Kyndryl, the IT services firm spun off from IBM in 2021, announced an accounting review on Feb. 9. CFO David Wyshner and General Counsel Edward Sebold left the company with immediate effect. The probe, focused on cash-management practices, prompted voluntary notification to the SEC, per Bloomberg.
• The news hit Kyndryl?s shares, which tumbled about 55% and traded at the lowest levels since December 2022. JPMorgan shifted its stance on the stock from Overweight to Underweight and sharply cut its price target.
• Although IBM no longer holds equity in Kyndryl, the episode sheds light on governance questions surrounding the former parent-subsidiary relationship and ongoing historical governance considerations.

Outlook for closing the transaction

• With the shareholder vote behind it, the principal hurdle appears cleared. The Hart-Scott-Rodino antitrust waiting period had already expired in January 2026.
• IBM guidance remains for a mid-2026 closing, contingent on the remaining regulatory approvals being satisfied.

In sum, while the Confluent deal moves toward completion and could unlock accretive value for IBM, fresh concerns around Kyndryl?s governance and controls add a layer of caution for investors watching the integration unfold.