Companies /Industrials

Korn Ferry

NYSE: KFY Staffing & Employment Services
$85.60
▲ $2.01 (+2.40%) today
Markets closed · 5:12pm ET

Q1 2026 Earnings

Reported Sep 9, 2025, 6:51am ET · SEC source
$1.31
Beat +5.95%
EPS · est. $1.24
$715.5M
Beat +3.82%
Revenue · est. $689.2M
−6.6%
Trailing market
KFY vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−3%0+3%Sep 9Sep 10report 6:51am ETearnings+0.5%−3.1%
−3%0+3%Sep 9Sep 10earnings+0.5%−3.1%
KFY −3.1%S&P 500 +0.5%
−3%0+3%Sep 9Sep 10report 6:51am ETearnings+0.3%−3.1%
−3%0+3%Sep 9Sep 10earnings+0.3%−3.1%
KFY −3.1%NASDAQ +0.3%
−3%0Sep 8Sep 16report 6:51am ETearnings+1.6%−3.9%
−3%0Sep 8Sep 16earnings+1.6%−3.9%
KFY −3.9%S&P 500 +1.6%
−3%0Sep 8Sep 16report 6:51am ETearnings+2.0%−3.9%
−3%0Sep 8Sep 16earnings+2.0%−3.9%
KFY −3.9%NASDAQ +2.0%
+0.58%
Day of report
−0.29%
Next session
+0.12%
One week
−3.43%
30 days

S&P 500 over the same 30 days: +3.20%.

Did KFY Beat Earnings? Q1 2026 Results

Korn Ferry kicked off fiscal 2026 with a clean beat on both top and bottom lines, as the executive search and talent advisory firm posted first-quarter earnings per share of $1.31, ahead of the $1.24 consensus estimate by 5.95%, while revenue of $715.54 million exceeded expectations by 3.82% and grew 4.8% from a year ago. The standout driver was Executive Search, where fee revenue climbed 8% to $224.25 million on the back of stronger engagement volumes and particularly sharp gains in EMEA and Asia Pacific, up 17% and 20% respectively, providing meaningful momentum even as CEO Gary Burnison acknowledged "choppiness" in the broader labor environment. Adjusted EBITDA rose 8% to $120.39 million, with margins ticking up 50 basis points to 17.0%, reflecting operating leverage across the firm's diversified platform. Looking ahead, management guided Q2 fee revenue of $690 million to $710 million and adjusted diluted EPS of $1.23 to $1.33, with a contract backlog of $1.67 billion underpinning confidence in the pipeline.

Key Takeaways
  • Fee revenue grew year-over-year in each solution area
  • Executive Search drove strong growth with 8% fee revenue increase led by higher engagements billed
  • Professional Search & Interim grew 10% aided by Trilogy International acquisition
  • Consulting average bill rates rose 9% due to shift toward larger, longer-duration engagements
  • RPO fee revenue increased due to new logo clients in North America
  • Digital subscription and license fee revenue grew to $37.2 million from $34.1 million year-over-year

“I am pleased with our company's performance. When looking at our results over the last few quarters—even amid all of the choppiness that has encircled the labor and economic environment—it's clear that our strategy is working.”

Korn Ferry CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY'26, Korn Ferry expects fee revenue in the range of $690 million to $710 million, diluted earnings per share of $1.10 to $1.16, and adjusted diluted earnings per share of $1.23 to $1.33. This guidance assumes worldwide geopolitical conditions, economic conditions, financial markets, and foreign exchange rates remain steady.

KFY YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$200.0M$400.0M$600.0M$682.8M$715.5MRevenue$76.0M$83.4MOperating Income$62.6M$66.6MNet Income
$0$200.0M$400.0M$600.0MRevenueOperating IncomeNet Income

KFY Revenue by Segment

Consulting$170.0M+1.2%
Executive Search - North America$139.7M+3.6%
Professional Search & Interim$133.9M+10.0%
Recruitment Process Outsourcing (RPO)$91.3M+3.1%
Digital$89.2M+1.2%
RPO
Executive Search - EMEA$53.8M+17.0%
Executive Search - Asia Pacific$24.7M+20.0%

Figures from SEC filings and company reports. Not investment advice.