Korn/Ferry International (NYSE:KFY) Issues Earnings Results, Beats Estimates By $0.07 EPS

Korn/Ferry International (NYSE:KFY) issued its quarterly earnings data on Wednesday. The business services provider reported $1.43 earnings per share for the quarter, beating the consensus estimate of $1.36 by $0.07, FiscalAI reports. The firm had revenue of $764.62 million for the quarter, compared to analyst estimates of $737.66 million. Korn/Ferry International had a net margin of 9.36% and a return on equity of 14.43%. The company’s revenue for the quarter was up 6.9% on a year-over-year basis. During the same quarter last year, the firm earned $1.26 earnings per share. Korn/Ferry International updated its Q2 2027 guidance to 1.300-1.400 EPS.

Here are the key takeaways from Korn/Ferry International’s conference call:

• Positive Sentiment: Korn Ferry reported its sixth consecutive quarter of fee-revenue growth, with first-quarter revenue up 7% year over year to $756 million, adjusted EBITDA up 7% to $128 million, and adjusted EPS up 9% to $1.43.
• Positive Sentiment: The completed AMS combination expands Korn Ferry to nearly 17,000 employees across more than 130 offices and adds substantial RPO, contingent workforce, early-career recruiting, and technology consulting capabilities. Management expects to achieve at least $40 million of incremental annualized EBITDA ahead of its original one-year target.
• Positive Sentiment: New business rose 12% and estimated remaining contract fees increased 14% to $1.92 billion, while the combined company’s backlog is approximately $3.5 billion. Management highlighted AMS’s long-tenured, multi-year client contracts and cross-selling opportunities as sources of greater revenue visibility.
• Neutral Sentiment: Growth was broad-based geographically, led by the Americas at 9%, with EMEA up 4% and APAC returning to 1% growth; search and workforce solutions were the strongest solution areas.
• Negative Sentiment: Second-quarter guidance includes only two months of AMS results and anticipates adjusted EBITDA margins of 16.8%–17.2% and EPS of $1.30–$1.40, with incremental amortization, interest expense, and share issuance from the acquisition weighing on earnings. Management also cited interest-rate uncertainty and ongoing Middle East conflict as macroeconomic risks.

Korn/Ferry International Price Performance

NYSE KFY opened at $78.03 on Friday. The company has a current ratio of 2.37, a quick ratio of 1.94 and a debt-to-equity ratio of 0.20. The company has a fifty day simple moving average of $80.94 and a 200 day simple moving average of $71.31. The company has a market cap of $4.26 billion, a P/E ratio of 14.72 and a beta of 1.19. Korn/Ferry International has a 1 year low of $58.95 and a 1 year high of $87.51.

Korn/Ferry International Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 22nd will be paid a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Tuesday, September 22nd. Korn/Ferry International’s payout ratio is presently 41.98%.

Trending Headlines about Korn/Ferry International

Here are the key news stories impacting Korn/Ferry International this week:

• Positive Sentiment: Korn/Ferry reported fiscal Q1 2027 adjusted EPS of $1.43, above the approximately $1.35–$1.36 analyst consensus, while revenue rose 6.9% year over year to about $764.6 million, exceeding expectations of $737.7 million. The quarter marked the company’s sixth consecutive period of revenue growth. Korn Ferry Announces First Quarter Fiscal 2027 Results
• Positive Sentiment: UBS raised its price target for KFY from $75 to $82 while maintaining a Neutral rating. The higher target reflects some recognition of the company’s earnings execution, although UBS still sees limited upside from current levels. UBS price target update
• Positive Sentiment: The board declared a quarterly dividend of $0.55 per share, payable October 15 to shareholders of record September 22. The dividend provides an annualized yield of roughly 2.7% and may support investor interest in the stock.
• Neutral Sentiment: Value-focused commentary from Zacks suggests investors may be undervaluing Korn/Ferry based on value, growth and momentum factors, but it does not represent a new earnings or operating catalyst. Are Investors Undervaluing Korn/Ferry International?
• Negative Sentiment: Korn/Ferry forecast fiscal Q2 2027 adjusted EPS of $1.30–$1.40, below the $1.45 consensus estimate. This weaker outlook overshadowed the first-quarter beat and is the main reason investors are selling the shares.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of KFY. Kestra Investment Management LLC grew its position in shares of Korn/Ferry International by 71.8% in the second quarter. Kestra Investment Management LLC now owns 579 shares of the business services provider’s stock valued at $42,000 after purchasing an additional 242 shares during the last quarter. Canada Pension Plan Investment Board increased its stake in shares of Korn/Ferry International by 200.0% in the second quarter. Canada Pension Plan Investment Board now owns 600 shares of the business services provider’s stock worth $44,000 after purchasing an additional 400 shares during the period. Danske Bank A S acquired a new position in shares of Korn/Ferry International during the 3rd quarter worth about $56,000. EverSource Wealth Advisors LLC lifted its position in shares of Korn/Ferry International by 84.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 854 shares of the business services provider’s stock worth $63,000 after purchasing an additional 390 shares during the last quarter. Finally, Parkside Financial Bank & Trust boosted its stake in Korn/Ferry International by 431.9% during the 4th quarter. Parkside Financial Bank & Trust now owns 1,149 shares of the business services provider’s stock valued at $76,000 after purchasing an additional 933 shares during the period. Institutional investors and hedge funds own 98.82% of the company’s stock.

Wall Street Analysts Forecast Growth

KFY has been the topic of several analyst reports. Wall Street Zen upgraded shares of Korn/Ferry International from a “hold” rating to a “buy” rating in a research note on Saturday, September 5th. Robert W. Baird lifted their price objective on shares of Korn/Ferry International from $84.00 to $85.00 and gave the company an “outperform” rating in a research note on Wednesday, June 24th. Truist Financial upped their price objective on shares of Korn/Ferry International from $75.00 to $80.00 and gave the stock a “buy” rating in a report on Tuesday, June 9th. Weiss Ratings raised shares of Korn/Ferry International from a “buy (b-)” rating to a “buy (b)” rating in a research report on Tuesday, June 23rd. Finally, UBS Group raised their target price on Korn/Ferry International from $75.00 to $82.00 and gave the company a “neutral” rating in a report on Thursday. Four investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Korn/Ferry International currently has a consensus rating of “Moderate Buy” and an average target price of $80.25.

Korn/Ferry International Company Profile

Korn Ferry International is a global organizational consulting firm that partners with clients to design optimal structures, roles and responsibilities. The company’s core offerings include executive search, talent acquisition, leadership development and succession planning. By blending deep industry expertise with data-driven insights, Korn Ferry helps organizations identify, assess and develop executives and high-potential talent for critical roles.

Since its founding in 1969 and with headquarters in Los Angeles, Korn Ferry has expanded its presence to more than 50 offices across North America, Europe, Asia Pacific and Latin America.