Korn Ferry
Q1 2027 Earnings
Includes $7.6 million ($0.15 per diluted share pre-tax) in integration/acquisition costs related to the AMS acquisition, with a tax benefit of $1.9 million ($0.04 per diluted share)
Market Reaction
Did KFY Beat Earnings? Q1 2027 Results
Korn Ferry delivered a clean beat across both top and bottom lines in its fiscal first quarter of 2027, extending its run of consensus EPS beats to five consecutive quarters as the talent consulting firm demonstrated that its growth momentum is holding firm. Adjusted diluted EPS of $1.43 cleared the $1.36 consensus estimate by 5.02%, while revenue of $764.62 million topped expectations by 3.65% and grew 6.9% year over year, powered by double-digit gains in Search and Workforce Solutions, up 10.4% and 11.1%, respectively. The Americas segment was the standout contributor, with fee revenue rising 9.4% to $442.13 million and Adjusted EBITDA margin expanding 140 basis points to 26.3%. Adding further strategic weight to the quarter, Korn Ferry completed its acquisition of AMS from OMERS Private Equity, combining two prominent brands to form a global leader in talent consulting. Looking ahead, the company guided Q2 fee revenue of $860 million to $878 million and adjusted diluted EPS of $1.30 to $1.40, reflecting two months of AMS contribution alongside incremental amortization and interest costs from the deal.
- Double-digit fee revenue growth in Search (10.4%) and Workforce Solutions (11.1%)
- Americas region led growth with 9.4% fee revenue increase driven by 14% growth in both Search and Workforce Solutions
- Estimated remaining fees under existing contracts up 14% year-over-year to $1.9 billion
- New business awards of $832.3 million, up 12% year-over-year
- Fee revenue grew in all regions year-over-year
“I am very pleased with our quarterly performance. This marks our sixth consecutive quarter of top-line growth, demonstrating the momentum and durability of our business, as well as the sustaining value we are creating for our clients.”
Korn Ferry CEO, on the earnings call
Forward Guidance & Outlook
For Q2 FY27 (including two months of AMS contribution), Korn Ferry expects fee revenue of $860 million to $878 million, adjusted EBITDA margin of 16.8% to 17.2%, and adjusted diluted EPS of $1.30 to $1.40. The Q2 outlook incorporates the net after-tax impact of two months of incremental intangible asset amortization, incremental net interest expense, and incremental shares issued in connection with the AMS acquisition. Guidance assumes no further changes in worldwide geopolitical conditions, economic conditions, financial markets, and foreign exchange rates.
KFY YoY Financials
KFY Revenue by Segment
KFY Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.