Korn Ferry (NYSE:KFY) stock rose Tuesday after the organizational consulting firm reported fiscal fourth-quarter 2026 results that topped Wall Street estimates on both revenue and earnings.
Fourth-Quarter Results Beat Estimates
Revenue increased 6.7% year over year to $768.3 million, exceeding analysts’ estimate of $743.3 million. Fee revenue rose 7% to $759.8 million, or 5% on a constant-currency basis.
GAAP diluted earnings per share increased to $1.39 from $1.21 a year earlier. Adjusted diluted EPS climbed to $1.40 from $1.32, topping the consensus estimate of $1.38.
Net income attributable to Korn Ferry rose to $73.1 million from $64.2 million in the prior-year quarter. Adjusted EBITDA increased to $129.5 million from $121.1 million.
“I am very pleased with our quarterly performance. This marks our fifth consecutive quarter of top-line growth, underscoring the strength of our strategy and the increasing relevance of our solutions – all amid an uneven economic environment,” CEO Gary D. Burnison said.
Full-Year Earnings Improve
For fiscal 2026, total revenue increased 6.4% to $2.94 billion, while fee revenue rose 7% to $2.91 billion.
GAAP diluted EPS climbed to $5.22 from $4.60 in fiscal 2025. Adjusted diluted EPS increased to $5.28 from $4.88.
Search Units Lead Growth
Executive Search fee revenue rose 7% to $242.0 million, while adjusted EBITDA for the segment increased 18% to $64.0 million.
Professional Search & Interim posted a 14% increase in fee revenue to $149.1 million, driven by growth in Permanent Placement and Interim services.
Consulting fee revenue rose 7% to $181.9 million. Digital fee revenue declined 3% to $89.3 million, while RPO fee revenue increased 5% to $97.6 million, supported by new client wins in North America.
Backlog Grows, Buybacks Continue
Estimated remaining fees under existing contracts increased 10% to $1.88 billion.
During the quarter, Korn Ferry repurchased 1.24 million shares for $78.8 million and paid $28.3 million in dividends.
The board declared a quarterly cash dividend of 55 cents per share, payable July 31, 2026, to shareholders of record on July 6, 2026.
The company ended the quarter with $1.10 billion in cash and cash equivalents and $398.6 million in long-term debt.
Fiscal 2027 Outlook
For the first quarter of fiscal 2027, Korn Ferry expects fee revenue between $725 million and $745 million. The company forecast GAAP diluted EPS of $1.32 to $1.38, compared with the analyst estimate of $1.33.
The outlook assumes no material adverse impact from the recent Middle East conflict and stable geopolitical, economic, financial market and foreign exchange conditions.
KFY Price Action: Korn Ferry shares were up 5.50% at $71.49 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo via Shutterstock
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