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KFY

Korn Ferry Reports 7% Fee Revenue Growth in Q3 FY'26

Korn Ferry, a global consulting firm, has reported its third-quarter fiscal 2026 results, revealing several key financial highlights. The company's fee revenue for Q3 FY'26 amounted to $717.4 million, marking a 7% year-over-year increase. Net income attributable to Korn Ferry also saw a significant uptick, increasing by 12% year-over-year to $65.3 million, with a margin of 9.1%. Adjusted EBITDA climbed 8% year-over-year to $123.1 million, with a margin of 17.2%. Additionally, the estimated remaining fees under existing contracts at the end of the third quarter surged by 11% year-over-year to $1.9 billion.

In terms of specific solutions, fee revenue growth was observed across all segments. Executive search recorded a substantial 13% increase, followed by professional search & interim and consulting, both at 5%. The digital segment also saw growth, with fee revenue increasing by 4% year-over-year.

Looking at the company's outlook for the fourth quarter of FY'26, Korn Ferry anticipates fee revenue to fall within the range of $730 million to $750 million, with diluted earnings per share expected to range between $1.34 to $1.40.

The earnings conference call, which will delve deeper into these results, is scheduled to take place today and will be hosted by CEO Gary Burnison, CFO Robert Rozek, SVP Business Development & Analytics Gregg Kvochak, and VP Investor Relations Tiffany Louder.

The company's performance reflects its continued growth trajectory, with positive year-over-year changes across various financial metrics, indicating a strong and resilient business position. The market has reacted to these announcements by moving the company's shares -1.12% to a price of $67.97. For the full picture, make sure to review KORN FERRY's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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