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what it is
Korn Ferry helps companies find leaders, train managers, and fix talent problems before they get expensive.
how it gets paid
Last year Korn Ferry made $2.8B in revenue. Consulting was the main engine at $1.03B, or 38% of sales.
why growth slowed
Revenue fell 1.2% last year. The 17% jump in executive recruitment mattered most because it beat the company's overall 7% revenue growth and showed the highest-value work is still selling.
what just happened
Quarterly EPS came in at $1.33, below the $1.40 consensus, even as revenue rose 7% vs. prior year to $730M.
At a glance
B+ balance sheet — decent shape, but not bulletproof
50/100 earnings predictability — expect surprises
13.2x trailing p/e — the market's not buying it — or you found a deal
2.9% dividend yield — cash in your pocket every quarter
13.0% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
Korn Ferry helps companies find leaders, train managers, and fix talent problems before they get expensive.
A bad executive hire can cost far more than the search bill, so you usually call the firm with the biggest network and the deepest bench. Korn Ferry has 103 offices in 51 countries and long-standing work with Fortune 500 clients, which means your candidate list gets built faster and with more context. That reach makes replacement harder than it looks.
How they make money
$2.8B
annual revenue · their business grew -1.2% last year
Consulting
$1.03B
+4.0%
Executive Search
$796M
+17.0%
Digital
$444M
+6.0%
Professional Search & Interim
$330M
+5.0%
RPO & Talent Solutions
$126M
+3.0%
The products that matter
talent advisory and consulting
Consulting & Digital
$2.8B companywide revenue base
this sits inside the full $2.8B business and matters because korn ferry sells expertise, not software licenses. you get paid when clients keep spending on talent strategy and organization design.
core revenue base
senior leadership placement
Executive Search
+10% fee revenue
fee revenue in executive search rose 10% from a year ago. that is a clean read on whether boards and CEOs are still willing to pay for high-value searches.
higher-value demand
professional search and interim staffing
Professional Search & Interim
+17% from a year ago
this operation grew 17% in the reported period. if that pace holds, it helps prove client demand is broadening beyond the boardroom. if it fades, the rebound case narrows fast.
watch closely
Key numbers
13.2x
trailing p/e
You are paying 13.2 times earnings for a company expected to grow EPS from $5.20 to $5.70, which is cheap for a global advisory franchise.
18.0%
operating margin
Operating margin means profit before interest and taxes, or the money left after running the business. At 18.0%, Korn Ferry earns more on each sales dollar than a plain staffing shop.
13.0%
return on capital
Return on capital means how hard each invested dollar works. At 13.0%, the business is productive, but not untouchable.
2.9%
dividend yield
You get a 2.9% cash yield while you wait, which matters when the 18-month target is only $78.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $398M (10% of capital)
- net profit margin 10.3% — keeps 10 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in KFY 3 years ago → it's now worth $14,880.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Quarterly EPS came in at $1.33, below the $1.40 consensus, even as revenue rose 7% vs. prior year to $730M.
Value Line says fee revenue rose 10% and executive recruitment grew 17%, which kept profit moving despite the slight EPS miss. A separate EDGAR snippet shows $2.2B revenue and $3.84 EPS, but that conflicts with Yahoo's $1.33 figure, so the cleaner cross-check is the $730M and $1.33 set.
$730M
revenue
$1.33
eps
18.0%
operating margin
the number that mattered
The 17% jump in executive recruitment mattered most because it beat the company's overall 7% revenue growth and showed the highest-value work is still selling.
-
korn ferry completed the fiscal second quarter on a solid note (year ends april 30th).
-
the top line increased 7% vs. prior year, to $730 million, thanks to a 10% rise in fee revenue and a 17% gain in the executive search, professional search & interim operations.
-
meanwhile, the bottom line rose nearly 10% from the year-ago period, to $1.33 per share, as improved fee revenue partially offset elevated compensation and benefits expenses and increased service costs.
-
we project share earnings to advance 7% in fiscal 2025 and another 10% in fiscal 2026, reaching $5.20 and $5.70, respectively.according to the latest report, the company experienced a healthy double-digit increase in business referrals, pointing to improving client engagement.
-
fee revenue in the executive search unit rose 10% vs. prior year, reflecting higher leadership turnover across organizations.
source: quarterly summary, fiscal Q2 2026
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What could go wrong
the #1 risk is a hiring freeze hitting search and advisory demand at the same time.
high
hiring budgets roll over again
korn ferry sells into leadership searches, professional hiring, interim placements, and talent advisory work. if clients pause hiring, the same macro shock hits a large share of the $2.8B revenue base at once.
Annual revenue already slipped 1.2%. Another leg down would put the $3B recovery story at risk fast.
med
cost growth outruns fee growth
the latest quarter showed better revenue, but compensation and service costs also moved higher. in a people business, the cost base is not a side note.
On a 10.3% net margin, even modest cost pressure can eat into the earnings recovery investors are paying for.
med
the rebound stays narrow
executive search fee revenue rose 10% and professional search plus interim grew 17%, but this snapshot does not show a full segment bridge. if growth sits in a few pockets instead of spreading, the market may not reward it.
That leaves you with a stock at 13.2x earnings that looks cheap on paper and fully valued in practice.
A hiring freeze or cost squeeze would hit the same place: a $2.8B revenue base with a 10.3% net margin and only moderate earnings visibility.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue getting back to $3B
the street expects roughly $3B in FY2026 revenue. if kfy cannot reclaim that level, the rebound story gets thinner and the cheap multiple stops looking generous.
trend
search and interim demand
executive search fee revenue rose 10%, and professional search plus interim grew 17%. you want to see both stay positive so the upturn is not limited to one corner of the business.
risk
compensation and service costs
higher costs already showed up in the latest quarter. on a 10.3% net margin, that line can undo a lot of good revenue work.
earnings
next proof point on EPS
FY2025 EPS came in at $5.20, with FY2026 seen at $5.70. you are looking for a path above the recent $1.20–$1.36 quarterly band, backed by revenue and not just expense control.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a stock moving with the tape, not one sending a strong near-term signal.
risk profile
average
stability score 3 — neither unusually safe nor unusually volatile. middle-of-the-pack fits a cyclical people-services business.
chart momentum
average
technical score 3 — no strong trend. the chart is waiting for the hiring cycle to say something louder.
earnings predictability
50 / 100
earnings predictability of 50/100 means quarterly results can surprise in both directions. that uncertainty is part of why the stock stays cheap.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 182 buyers vs. 140 sellers in 3q2025. total institutional holdings: 50.6M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$55
$101
$69
current price
$78
target midpoint · +13% from current · 3-5yr high: $100 (+45% · 12% ann'l return)
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