Korn Ferry (KFY) AI Stock Analysis

• Market Cap: $3.20B
• Dividend Yield: 2.89%
• Average Volume (3M): 570.58K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.93
• Revenue Growth: 3.65%
• EPS Growth: 5.71%
• Country: US
• Employees: 9,076
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 1.28
• Shares Outstanding: 51,887,090
• 10 Day Avg. Volume: 673,566
• 30 Day Avg. Volume: 570,579
• PEG Ratio: 0.29
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 10.58
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 4.17
• Enterprise Value/Ebitda: 5.93
• 1Y Price Target: $70.00
• Price Target Upside: 13.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 5.32
• Revenue Forecast (FY): $2.89B

• Rating: 73 Outperform
• Price Target: $70.00 ▲(13.34% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

KFY scores well on financial performance (improving profitability, low leverage, consistent positive free cash flow) and is supported by reasonable valuation with a solid dividend yield. The main constraint is weaker technical momentum (below key longer-term moving averages with negative MACD), while the latest earnings call was broadly constructive with growth, backlog expansion and upbeat guidance tempered by regional softness and geopolitical uncertainty.

Positive Factors

Balance sheet health

A conservative and improving leverage profile with steadily building equity gives Korn Ferry durable financial flexibility. This supports continued dividend increases, buybacks, selective M&A or product investment, and provides a buffer through downturns, preserving strategic optionality.

Backlog and new business visibility

An 11% increase in remaining fees and sustained new-business growth provide multi-quarter revenue visibility and smoother demand for fee-based services. With ~60% of fees expected to be recognized within a year, this backlog underpins predictable revenue conversion and planning for staffing and investment.

Free cash flow and capital returns

Consistent positive free cash flow and active capital returns signal durable cash generation and disciplined allocation. Ongoing buybacks/dividends alongside targeted CapEx for Talent Suite strengthen shareholder alignment while funding strategic digital and productivity investments without overleveraging.

Negative Factors

Revenue growth volatility

Korn Ferry's top-line has shown material year-to-year swings, implying revenue cyclicality tied to hiring cycles and enterprise budgets. This uneven growth complicates multi-year planning, makes margin forecasting harder, and raises execution risk when scaling recurring offerings or timing investments.

Digital monetization still early

Digital and subscription revenue being flat indicates the enterprise pivot and Talent Suite rollouts have yet to deliver sustained recurring revenue. Prolonged early-stage monetization risks slower margin insulation and delays in building a high-quality, predictable subscription income stream.

Client concentration and cross-sell execution

High revenue concentration across a limited client base and modest average product penetration leave growth dependent on deeper cross-sell execution. Successful rollout of Talent Suite and front-office enablement is required; failure to expand wallet share raises customer concentration and growth risks.

Korn Ferry Business Overview & Revenue Model

Company Description

Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company provides executive search services to recruit board level, chief executive, other senior executive, and general management talent of organizations. It also offers organizational strategy, assessment and succession, leadership and professional development, and total reward services. In addition, the company provides RPO, business project, professional search, and outsource recruiting solutions. Further, the company offers tech-enabled solutions that identify structures, roles, capabilities, and behaviors to drive businesses. It serves public and private companies, and middle market and emerging growth companies, as well as government and non-profit organizations. The company was formerly known as Korn/Ferry International and changed its name to Korn Ferry in January 2019. Korn Ferry was founded in 1969 and is based in Los Angeles, California.

How the Company Makes Money

Korn Ferry generates revenue primarily by providing fee-based talent and organizational consulting services and search/recruitment services. A major revenue stream comes from search and recruitment engagements, where clients pay fees for help identifying, evaluating, and hiring executives and other professionals; these fees are typically tied to the scope of the assignment and/or successful placement. Another key stream comes from consulting and advisory work focused on organizational effectiveness—such as leadership assessment and development, succession planning, organization design, and total rewards—where Korn Ferry earns revenue through project-based consulting fees and, where applicable, ongoing advisory arrangements. The company also earns revenue from its broader talent solutions offerings (e.g., assessment tools and other talent-related services), generally monetized through service fees and/or recurring arrangements when delivered as ongoing programs. Specific customer-level pricing terms, contract structures, and partnership details are not available in this response and are therefore null.

Korn Ferry Financial Statement Overview

Summary

Overall fundamentals are solid: profitability improved meaningfully into the TTM period, the balance sheet is resilient with conservative and improving leverage, and free cash flow is consistently positive. Offsets include uneven revenue growth over the cycle plus volatility in margins and sub-1x cash conversion in the most recent period, which adds cyclicality and predictability risk.

Income Statement

Profitability and margins strengthened meaningfully from FY2024 to TTM (Trailing-Twelve-Months), with operating and net margins improving and earnings recovering from the prior dip. Revenue has stabilized and turned modestly positive in TTM (Trailing-Twelve-Months) after two down years, but the longer-term growth profile is uneven (including a very strong FY2022 followed by normalization). A notable risk is volatility in gross margin across years, suggesting comparability or business mix swings that can make profitability less predictable.

Balance Sheet

Leverage is conservative and improving, with debt-to-equity trending down from FY2021 to TTM (Trailing-Twelve-Months) and equity steadily building. Returns on equity are healthy in TTM (Trailing-Twelve-Months) and improved versus FY2024, though still below the peak levels seen in FY2022. Overall, the balance sheet looks resilient with manageable debt and solid capitalization.

Cash Flow

Cash generation is solid: free cash flow is positive across periods and covered a meaningful portion of earnings in TTM (Trailing-Twelve-Months). Free cash flow growth is strong in TTM (Trailing-Twelve-Months), but results have been choppy year-to-year, and cash conversion (operating cash flow relative to reported earnings) sits below 1x, indicating earnings are not fully translating into operating cash in the most recent period.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	2.89B	2.76B	2.80B	2.86B	2.64B	1.82B
Gross Profit	684.40M	717.99M	618.49M	2.60B	2.51B	1.74B
EBITDA	481.84M	445.56M	321.58M	389.94M	521.72M	254.82M
Net Income	268.54M	246.06M	169.15M	209.53M	326.36M	114.45M
Balance Sheet
Total Assets	3.95B	3.86B	3.68B	3.57B	3.46B	3.06B
Cash, Cash Equivalents and Short-Term Investments	976.73M	1.04B	983.75M	888.86M	1.04B	914.45M
Total Debt	560.40M	571.21M	580.27M	561.24M	595.30M	598.78M
Total Liabilities	1.94B	1.99B	1.94B	1.92B	1.91B	1.69B
Stockholders Equity	2.00B	1.87B	1.73B	1.65B	1.54B	1.37B
Cash Flow
Free Cash Flow	287.94M	301.88M	228.81M	273.51M	452.25M	220.31M
Operating Cash Flow	373.32M	364.36M	283.96M	343.89M	501.66M	251.43M
Investing Cash Flow	-86.49M	-125.50M	-53.83M	-323.48M	-184.33M	-61.38M
Financing Cash Flow	-175.25M	-190.73M	-116.33M	-152.18M	-137.44M	-66.89M

Korn Ferry Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFY, the sentiment is Negative. The current price of 61.76 is below the 20-day moving average (MA) of 61.84, below the 50-day MA of 64.63, and below the 200-day MA of 68.12, indicating a bearish trend. The MACD of -0.81 indicates Negative momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 31.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KFY.

Korn Ferry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	73 Outperform	$3.20B	13.73	13.94%	2.89%	3.65%	5.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RHI	59 Neutral	$2.36B	20.45	10.26%	8.65%	-7.27%	-43.88%
KFRC	55 Neutral	$482.17M	15.78	26.32%	5.12%	-5.91%	-23.01%
MAN	51 Neutral	$1.24B	11.44	-0.65%	4.96%	-2.44%	-156.01%
NSP	45 Neutral	$923.21M	-210.19	-7.69%	6.37%	3.19%	-86.21%

Korn Ferry Corporate Events

Korn Ferry Adds Independent Director to Strengthen Board Governance

On March 5, 2026, Korn Ferry’s board expanded to nine members and elected Pete Shimer, former Chief Operating Officer of Deloitte U.S., as an independent director, assigning him to the Audit Committee and the Nominating and Corporate Governance Committee. Shimer, who also serves on the boards of Alaska Air Group and Synopsys and holds multiple nonprofit leadership roles, will receive standard non-employee director compensation prorated through the next annual meeting.

The appointment brings deep consulting, financial and operational expertise to Korn Ferry’s board, reflecting the firm’s push to strengthen governance and strategic oversight as it scales its global consulting business. Chief Executive Gary D. Burnison and Non-Executive Chair Jerry Leamon said Shimer’s track record in aligning strategy and operations within complex organizations is expected to enhance the board’s capabilities and support Korn Ferry’s long-term performance ambitions.

The most recent analyst rating on (KFY) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on Korn Ferry stock, see the KFY Stock Forecast page.

Korn Ferry Raises Quarterly Dividend, Extending Growth Streak

On March 5, 2026, Korn Ferry’s board approved a 15% increase in its quarterly cash dividend, raising the payout from $0.48 to $0.55 per share and setting April 15, 2026 as the payment date for shareholders of record on March 27, 2026. The move, which marks the firm’s sixth consecutive year of dividend growth, underscores management’s confidence in the durability of its business model and its commitment to regularly returning capital to shareholders, even as future dividends remain subject to board discretion and financial conditions.

By steadily lifting its dividend, Korn Ferry further strengthens its appeal to income-focused investors and signals operational resilience in the competitive global consulting market. The indicated annual dividend of $2.20 per share may enhance shareholder returns and support the company’s positioning as a disciplined, long-term value creator, while still allowing flexibility to adjust the policy in response to earnings, capital needs and broader market dynamics.

The most recent analyst rating on (KFY) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Korn Ferry stock, see the KFY Stock Forecast page.