Korn/Ferry International (NYSE:KFY) Issues Earnings Results

Korn/Ferry International (NYSE:KFY) released its quarterly earnings results on Monday. The business services provider reported $1.28 EPS for the quarter, beating the consensus estimate of $1.24 by $0.04, FiscalAI reports. Korn/Ferry International had a net margin of 9.29% and a return on equity of 14.36%. The business had revenue of $725.04 million during the quarter, compared to analyst estimates of $692.45 million. During the same period in the prior year, the firm posted $1.19 earnings per share. The company’s quarterly revenue was up 7.2% on a year-over-year basis. Korn/Ferry International updated its Q4 2026 guidance to 1.340-1.400 EPS.

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

• Consolidated Q3 results beat on growth and profitability — fee revenue rose 7% to $717 million, adjusted EBITDA grew 7.5% to $123 million, and adjusted diluted EPS increased 8% to $1.28, marking the fifth consecutive quarter of accelerating year‑over‑year fee revenue growth.
• The firm is pushing a unified “We Are Korn Ferry” model and rolling out Talent Suite as a strategic, data‑driven platform (multi‑year wins include a 40k‑employee aerospace client and a ~100k‑employee financial institution), creating meaningful cross‑sell runway across the 4,500 clients that generate 90% of revenue.
• Momentum in recurring and new‑business streams — subscription and license new business grew 30% (subscription/license fee revenue +8%), consulting and digital hit quarterly new‑business highs, and RPO added $54 million of new business with 78% from new logos.
• Capital allocation remains shareholder‑friendly while funding growth — the company returned about $113 million YTD via buybacks/dividends, invested $64 million in CapEx (Talent Suite and productivity), and the board raised the quarterly dividend 15% to $0.55 per share, while signaling potential additional buybacks.
• Q4 guidance (fee revenue $730M–$750M, adj. EBITDA margin 17.1%–17.3%, adj. EPS $1.34–$1.40) is conditional and does not factor in potential material impacts from recent geopolitical developments (Middle East conflict) or other macro uncertainties, which management says could change visibility.

Korn/Ferry International Trading Down 0.3%

NYSE KFY opened at $62.46 on Wednesday. Korn/Ferry International has a 1 year low of $58.95 and a 1 year high of $78.50. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.01 and a quick ratio of 2.14. The company has a market capitalization of $3.26 billion, a PE ratio of 12.34 and a beta of 1.32. The company has a fifty day moving average of $65.36 and a 200 day moving average of $67.70.

Korn/Ferry International Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Friday, March 27th will be given a dividend of $0.55 per share. This is a boost from Korn/Ferry International’s previous quarterly dividend of $0.48. This represents a $2.20 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date is Friday, March 27th. Korn/Ferry International’s payout ratio is presently 38.95%.

Analyst Ratings Changes

KFY has been the subject of several recent analyst reports. Wall Street Zen upgraded shares of Korn/Ferry International from a “hold” rating to a “buy” rating in a research note on Sunday, March 1st. Weiss Ratings restated a “buy (b-)” rating on shares of Korn/Ferry International in a research note on Wednesday, January 28th. Truist Financial cut their price target on shares of Korn/Ferry International from $88.00 to $75.00 and set a “buy” rating on the stock in a report on Tuesday. UBS Group reduced their price target on Korn/Ferry International from $72.00 to $65.00 and set a “neutral” rating on the stock in a research report on Tuesday. Finally, The Goldman Sachs Group lowered their price objective on Korn/Ferry International from $85.00 to $74.00 and set a “buy” rating for the company in a research report on Friday, November 21st. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $71.33.

Key Korn/Ferry International News

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

• Positive Sentiment: Earnings and revenue beat: Korn/Ferry reported adjusted EPS around $1.28 (reported EPS $1.23–$1.28 depending on source), topping estimates, and revenue of roughly $725M, above consensus — an immediate positive fundamental catalyst. MarketBeat Earnings Summary
• Positive Sentiment: Raised Q4 guidance: Management set FYQ4 EPS guidance of $1.34–$1.40, above the prior consensus (~$1.28), signaling confidence in near‑term profitability and supporting valuation. Slide Deck
• Positive Sentiment: Dividend increase: The company raised its quarterly dividend to $0.55 (annualized yield ~3.5%), a ~14.6% hike from the prior payout — supportive for income‑oriented investors and signals cash‑flow confidence.
• Positive Sentiment: Backlog and unit strength: Analyst writeups note a rising backlog (~$1.9B) and strength in executive search and digital services, which improves forward revenue visibility. Seeking Alpha Analysis
• Neutral Sentiment: Transcripts and presentation: Full earnings call transcript and slide deck are available for detail on segment performance and management commentary; useful for longer‑term investors assessing execution. Earnings Call Transcript
• Negative Sentiment: Price‑target cut by Truist: Truist lowered its KFY target from $88 to $75 while keeping a Buy rating — the cut reduces upside expectations and likely contributed to intraday selling pressure despite the buy rating. Benzinga

Hedge Funds Weigh In On Korn/Ferry International

A number of institutional investors have recently modified their holdings of the stock. Virtu Financial LLC lifted its holdings in shares of Korn/Ferry International by 7.7% in the 4th quarter. Virtu Financial LLC now owns 4,799 shares of the business services provider’s stock valued at $317,000 after buying an additional 343 shares during the period. State of Tennessee Department of Treasury grew its holdings in Korn/Ferry International by 43.5% during the fourth quarter. State of Tennessee Department of Treasury now owns 21,362 shares of the business services provider’s stock worth $1,484,000 after acquiring an additional 6,480 shares during the period. NewEdge Advisors LLC purchased a new position in Korn/Ferry International during the fourth quarter valued at approximately $630,000. Empowered Funds LLC purchased a new position in Korn/Ferry International during the fourth quarter valued at approximately $2,196,000. Finally, XTX Topco Ltd acquired a new position in Korn/Ferry International in the fourth quarter valued at approximately $1,634,000. Hedge funds and other institutional investors own 98.82% of the company’s stock.

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.