Earnings and Revenue Come in Ahead of Expectations
Korn Ferry (NYSE:KFY) reported fiscal fourth-quarter results that surpassed Wall Street forecasts, driven by broad-based growth across its business segments.
Following the announcement, shares of the global consulting and talent solutions firm rose 1.81% in premarket trading.
Adjusted earnings per share for the quarter came in at $1.40, exceeding analyst expectations of $1.38. Fee revenue increased 7% year over year to $759.8 million, also ahead of the consensus estimate of $742.1 million.
First-Quarter Guidance Offers Mixed Signals
Despite the stronger-than-expected quarterly performance, the company’s outlook for the opening quarter of fiscal 2027 was more restrained.
Korn Ferry forecast first-quarter earnings per share of between $1.32 and $1.38, compared with analyst expectations of $1.33.
Revenue is projected to range from $725 million to $745 million, versus the market consensus of $734 million. The midpoint of the guidance range, at approximately $735 million, sits slightly above expectations.
CEO Highlights Ongoing Growth Momentum
Management pointed to continued demand for the company’s services despite a challenging economic backdrop.
“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,” said Gary D. Burnison, CEO of Korn Ferry.
Professional Search & Interim Delivers Strongest Growth
Among the company’s operating divisions, Professional Search & Interim produced the strongest performance during the quarter.
Revenue in the segment climbed 14% year over year to $149.1 million.
Executive Search and Consulting also contributed to growth, with both businesses recording revenue increases of 7% compared with the prior-year period.
Profitability Continues to Improve
Korn Ferry reported net income attributable to shareholders of $73.1 million, representing a profit margin of 9.6%.
The margin improved by 60 basis points from the same quarter a year earlier, reflecting ongoing operational efficiency and revenue growth.
Adjusted EBITDA rose to $129.5 million, resulting in an adjusted EBITDA margin of 17.0%.
Company Maintains Positive Growth Trajectory
The latest results mark the fifth consecutive quarter of revenue growth for Korn Ferry, highlighting resilience across its consulting, recruitment and talent management businesses.
While the company’s near-term guidance suggests a measured start to fiscal 2027, the strong fourth-quarter performance demonstrates continued demand for its workforce advisory and talent solutions offerings.