Korn Ferry Beats Fiscal Q1 Expectations, Offers Promising Guidance for Q2

Korn Ferry (NYSE: KFY) has reported its financial results for the first quarter of fiscal year 2026, showcasing a strong performance that exceeds market expectations. The company also provides optimistic guidance for the upcoming quarter, reflecting its strategic growth and adaptability in a fluctuating economic landscape.

Korn Ferry Reports Better-than-Expected Results for Q1 FY’26

In the first quarter of fiscal 2026, Korn Ferry reported fee revenue of $708.6 million, marking a 5% increase from the previous year and exceeding the anticipated $685.13 million. This growth was driven by strong performances in Professional Search & Interim, which saw a 10% rise, and Executive Search, which experienced an 8% increase. The company’s net income attributable to Korn Ferry reached $66.6 million, up 6% year-over-year, with a margin of 9.4%. This was a slight improvement from the 9.3% margin recorded in the same quarter of the previous year.

Adjusted EBITDA for the quarter was $120.4 million, reflecting an 8% increase compared to the prior year, with a margin of 17.0%, up from 16.5%. Diluted earnings per share were reported at $1.26, surpassing the expected EPS of $1.24, while adjusted diluted EPS stood at $1.31, indicating an 11% year-over-year growth. This performance was attributed to the company’s strategic initiatives and the effective execution of its diversification strategy across various regions and solutions.

When comparing the actual results to the expectations, Korn Ferry’s performance is notably impressive. The company not only exceeded the revenue and EPS forecasts but also demonstrated a robust year-over-year growth across its various business segments. This achievement highlights the effectiveness of its comprehensive approach, which integrates expertise, intellectual property, and solutions to address client challenges globally.

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Korn Ferry Expects Q2 EPS Between $1.10 and $1.16

Looking ahead, Korn Ferry has provided guidance for the second quarter of fiscal 2026, projecting fee revenue to be between $690 million and $710 million. The company expects diluted earnings per share to range from $1.10 to $1.16, with adjusted diluted EPS anticipated to be between $1.23 and $1.33. This guidance reflects Korn Ferry’s confidence in its ongoing strategies and its ability to navigate the complexities of the current economic environment.

The company’s outlook is based on the assumption that global geopolitical and economic conditions, financial markets, and foreign exchange rates remain stable. Korn Ferry’s strategic focus on diversification and demographic shifts positions it well to capitalize on emerging opportunities and sustain its growth trajectory. The anticipated introduction of the Korn Ferry Talent Suite platform in the third quarter of fiscal 2026 is expected to further enhance its service offerings and drive future revenue growth.

Overall, Korn Ferry’s first-quarter results and optimistic guidance for the second quarter underscore its strong market position and strategic direction. By leveraging its global presence and comprehensive solutions, the company is well-equipped to tackle the challenges and seize the opportunities presented by the evolving business landscape. Investors and stakeholders can look forward to continued performance as Korn Ferry remains committed to delivering value and driving transformation across industries.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.