Korn Ferry (KFY)
NYSE:KFY
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Korn Ferry
(NYSE:KFY)
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Rating:73Outperform
Price Target:
$70.00
â–²(11.09% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Korn Ferry (KFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.27B
Dividend Yield2.89%
Average Volume (3M)652.59K
Price to Earnings (P/E)13.7
Beta (1Y)0.93
Revenue Growth3.65%
EPS Growth5.71%
CountryUS
Employees9,076
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)1.28
Shares Outstanding51,887,090
10 Day Avg. Volume801,629
30 Day Avg. Volume652,591
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)1.71
Price to Sales (P/S)1.16
P/FCF Ratio10.58
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit1.16
Enterprise Value/Ebitda6.02
Forecast
1Y Price Target
$70.00Price Target Upside11.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)5.32
Revenue Forecast (FY)$2.89B
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 compa...
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 iden...
Korn Ferry Earnings Call Summary
Earnings Call Date:Mar 09, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 24, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive tone driven by broad-based fee revenue growth (7% to $717M), improved profitability (adjusted EBITDA +7.5% to $123M), backlog expansion (+11% to $1.85B), strong new-business momentum (11% growth ex-RPO; subscription new business +30%), Talent Suite early commercial wins, and continued shareholder returns (dividend increase, buybacks). Challenges noted include APAC softness (-2%), digital revenue still flat YoY, consulting margin pressure, low temp penetration, and near-term geopolitical uncertainty that management has not quantified in guidance. On balance the operating performance, backlog and strategic positioning outweigh the short-term and regional headwinds.Positive Updates
Consolidated Revenue Growth
Consolidated fee revenue grew 7% year-over-year to $717 million in Q3 FY26, marking the fifth consecutive quarter of accelerating year-over-year fee revenue growth.
Negative Updates
APAC Revenue Softness
APAC fee revenue declined 2% year-over-year, with growth in Executive Search offset by modest weakness in other solutions.
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated fee revenue grew 7% year-over-year to $717 million in Q3 FY26, marking the fifth consecutive quarter of accelerating year-over-year fee revenue growth.
Read all positive updates
Company Guidance
Korn Ferry guided Q4 FY26 fee revenue of $730–$750 million, an adjusted EBITDA margin of 17.1%–17.3%, and consolidated adjusted and GAAP diluted EPS of $1.34–$1.40, assuming no material negative impact from the recent Middle East conflict or other significant geopolitical, economic, financial market or FX changes. That outlook follows Q3 results of $717 million in consolidated fee revenue (up 7% YoY), $123 million adjusted EBITDA (up $9M or 7.5%) with a 17.2% margin (up 10 bps), adjusted diluted EPS of $1.28 (up $0.09 or 8%), total company new business ex‑RPO +11%, RPO new business $54M (78% new logos), estimated remaining fees under contract of $1.85B (up 11%; ~60% or ~$1.1B expected to be recognized within a year, ~40% or ~$734M beyond that), ~$113M returned to shareholders YTD, $64M invested in CapEx, cross‑business referrals at 27.2% (up 200 bps), Marquee & Diamond accounts at 40% of revenue, subscription/license new business +30% (43% of Digital’s new business) with subscription/license fee revenue +8%, and average hourly bill rates up 2% for consulting and 15% for interim.Korn Ferry Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| 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 | 2.55B | 2.45B | 2.46B | 2.60B | 2.51B | 440.14M |
| EBITDA | 492.56M | 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 | 565.66M | 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
Neutral
63.01
Price Trends
64.28
Negative
65.11
Negative
68.04
Negative
Market Momentum
-0.43
Negative
51.78
Neutral
78.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFY, the sentiment is Neutral. The current price of 63.01 is above the 20-day moving average (MA) of 62.32, below the 50-day MA of 64.28, and below the 200-day MA of 68.04, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 51.78 is Neutral, neither overbought nor oversold. The STOCH value of 78.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KFY.
Korn Ferry Risk Analysis
Korn Ferry disclosed 47 risk factors in its most recent earnings report. Korn Ferry reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Korn Ferry Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.27B | 13.73 | 13.94% | 2.89% | 3.65% | 5.71% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $2.48B | 20.45 | 10.26% | 8.65% | -7.27% | -43.88% | |
55 Neutral | $510.69M | 15.78 | 26.32% | 5.12% | -5.91% | -23.01% | |
51 Neutral | $1.31B | 11.44 | -0.65% | 4.96% | -2.44% | -156.01% | |
45 Neutral | $983.20M | -11.06 | -7.69% | 6.37% | 3.19% | -86.21% |
* Industrials Sector Average
KFY
Korn Ferry
64.06
-3.26
-4.85%
NSP
Insperity
26.82
-56.95
-67.98%
KFRC
Kforce
28.70
-18.42
-39.09%
MAN
ManpowerGroup
28.81
-28.05
-49.33%
RHI
Robert Half
25.09
-25.94
-50.83%
Korn Ferry Corporate Events
Business Operations and StrategyExecutive/Board Changes
Korn Ferry Adds Independent Director to Strengthen Board Governance
Positive
Mar 6, 2026
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 Governa...
Business Operations and StrategyDividends
Korn Ferry Raises Quarterly Dividend, Extending Growth Streak
Positive
Mar 5, 2026
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 mo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.