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Korn Ferry
(NYSE:KFY)
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Rating:79Outperform
Price Target:
$96.00
▲(22.68% Upside)
Action:Reiterated
Date:08/07/26
KFY’s score is driven primarily by solid financial health (strong profitability, conservative leverage, and robust cash generation) and strong technical momentum (price above all major moving averages with positive MACD). Reasonable valuation (P/E ~15.4 with a ~2.5% yield) supports the rating, while the earnings call was broadly constructive with clear guidance and improving visibility, partially offset by cyclical demand risk, geopolitical sensitivity, and some execution uncertainty around recent corporate actions.
Positive Factors
Cash generation
Sustained operating cash flow (~$414M TTM) and strong free cash flow (~$324M, ~78% conversion) provide durable internal funding. This supports repeatable investment in digital tools, dividends and buybacks, and cushions the business against cyclical hiring slowdowns.
Negative Factors
Revenue and margin cyclicality
Historical swings in revenue and margins (declines in 2024–25 followed by a rebound) show structural sensitivity to hiring cycles and deal timing. Such cyclicality can weaken long-term cash conversion, complicate staffing utilization and stress margins during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained operating cash flow (~$414M TTM) and strong free cash flow (~$324M, ~78% conversion) provide durable internal funding. This supports repeatable investment in digital tools, dividends and buybacks, and cushions the business against cyclical hiring slowdowns.
Read all positive factors
Korn Ferry (KFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.21B
Dividend Yield2.47%
Average Volume (3M)646.05K
Price to Earnings (P/E)15.6
Beta (1Y)0.86
Revenue Growth6.43%
EPS Growth13.64%
CountryUS
Employees8,965
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)5.35
Shares Outstanding50,857,000
10 Day Avg. Volume439,837
30 Day Avg. Volume646,055
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)1.73
Price to Sales (P/S)1.16
P/FCF Ratio10.54
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$81.33Price Target Upside3.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)5.69
Revenue Forecast (FY)$3.01B
Korn Ferry Business Overview & Revenue Model
Company Description
Korn Ferry, established in Los Angeles, California, in 1969, delivers extensive organizational advisory solutions across the globe. The firm operates through four specialized divisions: Consulting, Digital, Executive Search, and Recruitment Proces...
How the Company Makes Money
Korn Ferry generates revenue primarily by providing fee-based talent acquisition and consulting services to organizations. A major revenue stream comes from executive search engagements, where Korn Ferry is paid to recruit senior leaders; fees are...
Korn Ferry Earnings Call Summary
Earnings Call Date:Jun 23, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operating and financial achievements — consistent top-line growth, higher full-year revenue, improved adjusted EBITDA and EPS, growing contract backlog, and solid solution-level performance across search, digital, consulting and workforce solutions. Management also executed shareholder-friendly capital allocation (buybacks/dividends) and provided a clear near-term outlook. Headwinds include a moderation in new business ex-RPO, geopolitical impacts (notably the Middle East situation affecting APAC/EMEA), and some margin pressure from elevated bonuses. Overall, positives (broad-based growth, contract visibility, referral gains, and solid guidance) outweigh the medium-term risks and near-term headwinds mentioned.Positive Updates
Consecutive Top-Line Growth
Company reported 5th consecutive quarter of top-line growth with consolidated fee revenue of $760 million in Q4, up 7% year-over-year.
Negative Updates
New Business Deceleration (Excluding RPO)
Total company new business growth was modest: 2% year-over-year excluding RPO (4% including RPO), indicating some moderation versus prior quarter in new engagements.
Read all updates
Q4-2026 Updates
Positive
Negative
Consecutive Top-Line Growth
Company reported 5th consecutive quarter of top-line growth with consolidated fee revenue of $760 million in Q4, up 7% year-over-year.
Read all positive updates
Company Guidance
For Q1 FY27 Korn Ferry guided consolidated fee revenue of $725–$745 million, an adjusted EBITDA margin of roughly 17%, and consolidated adjusted diluted EPS of $1.32–$1.38 (all assuming no further changes in geopolitical, economic, market or FX conditions). Management also said it will transition external reporting to three regional segments (Americas, EMEA, APAC) reporting fee revenue and adjusted EBITDA, while continuing solution‑level disclosure for Search, Talent & Organizational Solutions, and Workforce Solutions, and will provide recast supplemental unaudited historical segment data following the Q1 filing in September; for additional context they noted nearly $1.9 billion of estimated remaining fees under existing contracts (≈57% or ~$1.0B to be recognized within the next year and ≈43% or ~$800M beyond the next four quarters).Korn Ferry Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.94B | 2.76B | 2.80B | 2.86B | 2.64B |
| Gross Profit | 752.49M | 2.45B | 2.46B | 2.60B | 2.51B |
| EBITDA | 507.29M | 445.56M | 321.58M | 389.94M | 521.72M |
| Net Income | 277.43M | 246.06M | 169.15M | 209.53M | 326.36M |
Balance Sheet | |||||
| Total Assets | 4.06B | 3.86B | 3.68B | 3.57B | 3.46B |
| Cash, Cash Equivalents and Short-Term Investments | 1.13B | 1.04B | 983.75M | 888.86M | 1.04B |
| Total Debt | 591.58M | 568.07M | 580.27M | 565.66M | 595.30M |
| Total Liabilities | 2.09B | 1.99B | 1.94B | 1.92B | 1.91B |
| Stockholders Equity | 1.97B | 1.87B | 1.73B | 1.65B | 1.54B |
Cash Flow | |||||
| Free Cash Flow | 324.29M | 301.88M | 228.81M | 273.51M | 452.25M |
| Operating Cash Flow | 414.19M | 364.36M | 283.96M | 343.89M | 501.66M |
| Investing Cash Flow | -98.72M | -125.50M | -53.83M | -323.48M | -184.33M |
| Financing Cash Flow | -238.43M | -190.73M | -116.33M | -152.18M | -137.44M |
Korn Ferry Technical Analysis
Positive
78.25
Price Trends
75.28
Positive
70.06
Positive
67.18
Positive
Market Momentum
2.60
Positive
63.54
Neutral
58.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFY, the sentiment is Positive. The current price of 78.25 is below the 20-day moving average (MA) of 81.38, above the 50-day MA of 75.28, and above the 200-day MA of 67.18, indicating a bullish trend. The MACD of 2.60 indicates Positive momentum. The RSI at 63.54 is Neutral, neither overbought nor oversold. The STOCH value of 58.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.21B | 15.57 | 14.21% | 2.63% | 6.43% | 13.64% | |
73 Outperform | $1.04B | 27.22 | 29.32% | 2.87% | -1.26% | -11.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $4.31B | 36.13 | 8.99% | 6.69% | -4.95% | -34.47% | |
58 Neutral | $1.94B | -119.98 | -24.52% | 4.96% | 2.64% | -140.86% | |
55 Neutral | $2.62B | 25.10 | 5.06% | 2.81% | 6.72% | ― |
* Industrials Sector Average
KFY
Korn Ferry
83.30
11.01
15.23%
NSP
Insperity
50.39
1.52
3.12%
KFRC
Kforce
57.71
25.84
81.06%
MAN
ManpowerGroup
56.22
16.42
41.27%
RHI
Robert Half
41.55
7.87
23.37%
Korn Ferry Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Korn Ferry Plans Conditional Redemption of 2027 Senior Notes
Positive
Aug 6, 2026
On August 6, 2026, Korn Ferry announced a conditional plan to redeem its 4.625% Senior Notes due 2027, totaling $400 million in principal, under an indenture originally executed in December 2019. The company intends to execute the full cash redemp...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Korn Ferry Revises Timeline for Auxey Holdco Acquisition
Negative
Aug 3, 2026
On July 29, 2026, Korn Ferry amended its June 27, 2026 purchase and sale agreement with Auxey Holdings (Lux) S.A.S., OMERS Administration Corporation, AMS Cayco Ltd. and other parties, setting September 1, 2026 as the new target date for closing t...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Korn Ferry to Acquire AMS, Expanding Global Talent Services
Positive
Jun 29, 2026
On June 29, 2026, Korn Ferry announced a definitive agreement with OMERS Private Equity to acquire UK-based AMS for approximately £850 million, paid in a mix of cash and Korn Ferry common stock. Korn Ferry plans to fund about $300 million fro...
Business Operations and StrategyStock BuybackDividends
Korn Ferry Declares Quarterly Dividend, Highlights Capital Strategy
Positive
Jun 22, 2026
Korn Ferry’s board on June 22, 2026 declared a quarterly cash dividend of $0.55 per share, payable July 31, 2026 to shareholders of record as of July 6, 2026. The move, alongside the repurchase of 1.2 million shares during the quarter and 1....
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.