Korn Ferry (NYSE:KFY) posted stronger-than-expected results for its fiscal second quarter of 2026, delivering solid year-over-year growth in both revenue and profit. Still, the stock edged 0.8% lower in premarket trading as investors reacted to the firm’s guidance for the upcoming quarter.
The consulting group reported fee revenue of $721.7 million, up 7% from a year earlier and ahead of analyst expectations of $705.16 million. Adjusted earnings per share came in at $1.33, slightly above the consensus forecast of $1.31 and marking a 10% annual increase. Net income attributable to the company rose 19% to $72.4 million, improving the margin to 10.0%, or 100 basis points higher than the year-ago period.
Despite the strong quarter, the market focused on Korn Ferry’s fiscal Q3 projections. Management expects revenue in the range of $680 million to $694 million, with adjusted EPS between $1.19 and $1.25—roughly in line with, but slightly shy of, Street expectations of $687 million and $1.24.
CEO Gary D. Burnison praised the company’s momentum, stating, “Our performance during the quarter was outstanding, as we achieved our fourth consecutive quarter of accelerated growth, led by our Marquee and Diamond accounts.”
The firm saw particularly robust expansion in its Executive Search and Professional Search & Interim divisions, where fee revenue climbed 10% and 17%, respectively. Korn Ferry also ended the quarter with an estimated $1.84 billion in remaining fees under contract, up 20% year over year, signaling a strong pipeline.
Adjusted EBITDA increased 7% to $124.8 million, with a margin of 17.3%, roughly unchanged from last year. Gains from rising fee revenue were partially offset by higher personnel-related costs and service delivery expenses.
Looking ahead to Q3, Korn Ferry reaffirmed its expectations for fee revenue between $680 million and $694 million and adjusted diluted EPS of $1.19 to $1.25.