Korn/Ferry International (NYSE:KFY) Announces Quarterly Earnings Results

Korn/Ferry International (NYSE:KFY) issued its quarterly earnings results on Monday. The business services provider reported $1.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $692.45 million. During the same quarter in the prior year, the business posted $1.19 EPS. Korn/Ferry International’s revenue for the quarter was up 7.2% compared to the same quarter last year. 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 Price Performance

KFY stock opened at $62.46 on Wednesday. The business has a 50 day simple moving average of $65.36 and a 200-day simple moving average of $67.70. Korn/Ferry International has a twelve month low of $58.95 and a twelve month high of $78.50. The company has a market capitalization of $3.26 billion, a P/E ratio of 12.34 and a beta of 1.32. The company has a current ratio of 2.01, a quick ratio of 2.14 and a debt-to-equity ratio of 0.20.

Korn/Ferry International Increases Dividend

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

Key Headlines Impacting Korn/Ferry International

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

Wall Street Analysts Forecast Growth

Several brokerages have commented on KFY. 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 report on Wednesday, January 28th. The Goldman Sachs Group dropped their price target 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. Truist Financial cut their price objective on shares of Korn/Ferry International from $88.00 to $75.00 and set a “buy” rating for the company in a report on Tuesday. Finally, 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 report on Tuesday. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $71.33.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Kestra Investment Management LLC boosted its stake 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 buying an additional 242 shares in the last quarter. Canada Pension Plan Investment Board raised its position in Korn/Ferry International by 200.0% during the second quarter. Canada Pension Plan Investment Board now owns 600 shares of the business services provider’s stock worth $44,000 after acquiring an additional 400 shares during the last quarter. Danske Bank A S purchased a new stake in Korn/Ferry International in the 3rd quarter valued at approximately $56,000. EverSource Wealth Advisors LLC lifted its position in shares of Korn/Ferry International by 84.1% in the second quarter. EverSource Wealth Advisors LLC now owns 854 shares of the business services provider’s stock valued at $63,000 after acquiring an additional 390 shares in the last quarter. Finally, Parkside Financial Bank & Trust lifted its holdings in Korn/Ferry International by 431.9% in 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 in the last quarter. 98.82% of the stock is owned by hedge funds and other institutional investors.

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.