📈 Price History

Ratio Health

— Excellent

— Good

— Average

— Poor

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Shareholding

About

Korn Ferry, together with its subsidiaries, engages in the provision of organizational consulting services worldwide.

Key Ratios Snapshot

📊 Sector Averages

📈 Growth Pattern

⚡ Latest Quarter —

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⭐ Superinvestors Holding KFY

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Manager	Shares	Value	% of Fund	Period
Steve Cohen Point72 Asset Management	283.9K	$17.9M	0.02%	Mar 2026
Jim Simons Renaissance Technologies LLC	57.6K	$3.6M	0.01%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Mixed → Stable 4 quarters analysed

Q4 2025

Mixed

new business up 3%, adjusted EBITDA up 8%. They acknowledge a 'very difficult economic environment' but frame results as 'industry-leading'.

Q1 2026

Mixed

really pleased', 'optimistic', 'strategy is working') while simultaneously describing a 'extremely uncertain' global environment with 'labor recession', 'lingering economic challenges', and 'conservatism' in guidance.

Q2 2026

Mixed

'strategy is clearly working', and 'incredibly confident' while citing concrete metrics: fourth consecutive quarter of accelerating growth, 7% fee revenue growth, 27.6% cross-referral rate, and 40% of consulting engagements over $500,000.

Q3 2026 latest

Mixed

'very pleased', 'the strategy is working', and provided precise figures (e.g., fifth consecutive quarter of accelerating YoY fee revenue growth, 7% revenue growth, adjusted EBITDA up 7.5%, new business up 11%). They emphasized specific achievements: cross-business referrals at 27% of business, 40% of revenue from Marquee/Diamond accounts, and all-time highs in consulting and digital new business.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis is stronger after this call. Korn Ferry delivered its fifth consecutive quarter of accelerating fee revenue growth (7% YoY) with broad-based gains across all solutions and regions (except slight APAC weakness). The 'We Are Korn Ferry' strategy is driving higher cross-business referrals (27%) and deeper penetration of 4,500 key clients. The demographic/AI narrative supports long-term demand for high-end talent services. Talent Suite is still early, but initial large multi-year deals (e.g., aerospace and defense company) and a 30% jump in subscription new business are promising. Margins remain within the 16%-18% target range despite ongoing investments. Key risks to watch: the impact of escalating Middle East tensions on client decision-making (management admitted it's not yet visible) and whether the strong new business momentum can be sustained. Next quarter, focus on Q4 guidance execution (revenue midpoint $740M), any commentary on geopolitical effects on sales cycles, and updates on Talent Suite adoption among the 2,000 front-of-house colleagues.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Mixed → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Korn Ferry Q3 FY2026: Fee revenue $717M (+7% YoY), cross-referrals at 27%

Revenue & Profitability

Consolidated fee revenue was $717 million, up 7% year-over-year. Adjusted EBITDA rose 7.5% to $123 million, with margin of 17.2%. Adjusted diluted EPS grew 8% to $1.28. For Q4 FY2026, management guided fee revenue of $730-$750 million, adjusted EBITDA margin of 17.1%-17.3%, and adjusted EPS of $1.34-$1.40. Total new business (ex-RPO) grew 11%, and RPO new business was $54 million.

Outlook

Management sees a structural labor supply imbalance driven by demographics—10,000 baby boomers retiring daily, falling birth rates, and declining labor force participation. They believe AI will not disintermediate high-end talent but will require companies to do more with less. CEO stated that most companies are in the 'first inning' of AI adoption. The firm's guidance assumes no material negative impact from the recent Middle East conflict or changes in geopolitical conditions.

Growth Drivers

Key growth levers include deepening relationships with the top 4,500 clients (currently only 1.5-2 solutions used per client), Marquee and Diamond accounts (40% of revenue), and cross-referrals (27% of revenue, up 200 bps). Consulting posted an all-time quarterly high in new business, with 44% of engagements over $0.5 million. Interim is expanding in Europe. Digital subscription and license fee revenue grew 8%, and subscription new business rose 30% YoY.

Balance Sheet & CapEx

Current CapEx run rate is approximately $80-$85 million, heavily weighted toward Talent Suite, productivity tools, and solution enhancements. Management expects this to decline to $60-$65 million in FY2027. Capital allocation was balanced, with $113 million returned to shareholders via buybacks and dividends YTD, and $64 million invested in CapEx. The board approved a 15% dividend increase to $0.55 per share.

Margins

Adjusted EBITDA margin was 17.2%, up 10 bps year-over-year. The target range is 16%-18% over the current investment horizon. Consulting margins declined 70 bps due to bonus accruals from strong revenue. Revenue per headcount has increased ~35% over three years, reflecting efficiency gains. The company expects margins to remain in the guided range for Q4 (17.1%-17.3%).

Key Risks

Risks flagged include geopolitical issues (Middle East conflict, Ukraine, China lockdowns) and macro headwinds such as a K-shaped economy, cost of living crisis, and elevated oil prices. The CEO noted that the labor market has been in a 'recession' for 36 months. Management stated that the last 10 days of market dislocation were not factored into guidance, and they expect another 90 days before gaining clearer line of sight.

Generated by AI · Q3 2026 results · Not investment advice

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