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Korn Ferry (KFY)
NYSE:KFY
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Korn Ferry
(NYSE:KFY)
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Rating:68Neutral
Price Target:
$79.00
â–²(12.25% Upside)
Korn Ferry's overall stock score reflects solid financial performance and positive earnings call insights, offset by mixed technical indicators and valuation concerns. The company's strategic growth in digital and executive search is promising, but economic uncertainties and cash flow management remain areas to watch.
Positive Factors
Strong Regional Growth
The robust growth in EMEA and APAC regions indicates Korn Ferry's successful expansion and market penetration, enhancing its global footprint and long-term revenue potential.
Digital Subscription Growth
The increase in digital subscriptions reflects Korn Ferry's strategic shift towards digital transformation, which can drive sustainable growth and recurring revenue streams.
Executive Search Revenue Growth
Consistent growth in Executive Search revenue underscores Korn Ferry's strong market position and ability to attract and place top talent, a core aspect of its business model.
Negative Factors
Americas Revenue Decline
The decline in the Americas region signals potential challenges in maintaining demand for consulting and search services, which could affect overall growth if not addressed.
Uncertain Economic Environment
Economic uncertainties may lead to reduced client spending and cautious investment, impacting Korn Ferry's revenue growth and strategic initiatives.
Cash Flow Management
Challenges in cash flow management could limit Korn Ferry's ability to invest in growth opportunities and maintain financial flexibility, affecting long-term sustainability.
Korn Ferry (KFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.69B
Dividend Yield2.57%
Average Volume (3M)442.12K
Price to Earnings (P/E)15.0
Beta (1Y)1.06
Revenue Growth0.79%
EPS Growth34.85%
CountryUS
Employees9,076
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)1.31
Shares Outstanding52,390,987
10 Day Avg. Volume503,646
30 Day Avg. Volume442,115
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 Cap0.96
Enterprise Value/Revenue1.27
Enterprise Value/Gross Profit4.86
Enterprise Value/Ebitda7.97
Forecast
1Y Price Target
$81.50Price Target Upside15.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Korn Ferry Business Overview & Revenue Model
Company DescriptionKorn 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 MoneyKorn Ferry generates revenue primarily through its consulting and talent acquisition services. The main revenue streams include fees from executive search engagements, which involve recruiting executives for client organizations, and consulting services that focus on leadership development, organizational design, and employee engagement strategies. Additionally, the company earns revenue from assessments and surveys, helping organizations evaluate their talent and leadership potential. Strategic partnerships with technology providers and other consulting firms also contribute to its business model, allowing Korn Ferry to broaden its service offerings and enhance its market reach.
Korn Ferry Earnings Call Summary
Earnings Call Date:Sep 09, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Dec 03, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in key areas such as Executive Search and regional growth in EMEA and APAC. The successful advancement towards integrated solutions and digital transformation indicates a positive strategic direction. However, challenges are posed by a decline in the Americas region's revenue and economic uncertainties impacting the outlook for the next quarter. Overall, the company is navigating the current environment effectively, with growth in strategic areas balancing out the challenges.Q1-2026 Updates
Positive Updates
Strong Marquee & Diamond Accounts Performance
Marquee & Diamond accounts generated almost 40% of revenue with a 7% fee revenue growth year-over-year.
Executive Search Revenue Growth
Executive Search fee revenue grew 8% in the quarter, marking the fifth consecutive quarter of year-over-year growth.
EMEA and APAC Regional Growth
EMEA fee revenue grew 19% and APAC fee revenue grew 12% year-over-year, with growth in all solutions.
Digital Subscription Growth
Digital subscription and licensed new business grew 10% year-over-year, contributing to 39% of total digital new business.
Overall Financial Performance
Consolidated fee revenue grew 5% year-over-year to $709 million, with adjusted EBITDA growing 8% to $120 million and adjusted diluted earnings per share up 11% to $1.31.
Successful Launch of Talent Suite
The Talent Suite platform is on track for a November launch, expected to enhance client insights and decisions through a SaaS platform.
Negative Updates
Americas Region Revenue Decline
Fee revenue in the Americas was down 2% year-over-year due to lower demand in consulting, digital, and professional search and interim.
Uncertain Economic Environment
Global economic challenges, including unresolved tariff issues and inflation concerns, contributed to cautious investment spending.
Conservative Q2 Revenue Guidance
Guidance for Q2 fiscal '26 indicates a potential slight dip in revenue at the midpoint, reflecting economic uncertainties.
Company Guidance
During Korn Ferry's First Quarter Fiscal Year 2026 conference call, the company provided guidance for the second quarter, projecting fee revenue ranging from $690 million to $710 million. They expect an adjusted EBITDA margin of approximately 17% to 17.5% and consolidated adjusted diluted earnings per share between $1.23 and $1.33. The GAAP diluted earnings per share is anticipated to be between $1.10 and $1.16, factoring in $0.14 per share of accelerated depreciation related to the transition to their new Talent Suite platform. The company remains optimistic about its diverse and integrated solutions strategy, which has driven recent growth, evidenced by executive search fee revenue growth of 8% and digital subscription growth of 10% year-over-year. The call highlighted the company's strong foundation, resilient business model, and commitment to innovation and operational excellence.Korn Ferry Financial Statement Overview
Summary
Korn Ferry demonstrates strong profitability with healthy margins and effective cost management. The balance sheet is robust with low leverage and strong equity, while cash flow metrics indicate efficient cash generation. Despite a slight revenue decline, the company's financial stability is commendable.Income Statement
Korn Ferry demonstrates strong profitability with a healthy net profit margin of 8.9% and a robust EBIT margin of 12.5% for the latest year. Although the revenue has slightly declined by 1.2% from the previous year, the company shows effective cost management, as indicated by a gross profit margin of 26%. The EBITDA margin of 14.5% further highlights operational efficiency. Overall, Korn Ferry maintains solid profitability despite minor revenue contraction.75
Positive
Balance Sheet
Korn Ferry maintains a strong balance sheet with a low debt-to-equity ratio of 0.30, indicating prudent leverage management. The equity ratio stands at 48.3%, reflecting a strong equity base relative to total assets. Return on equity is impressive at 13.2%, showcasing effective use of shareholder funds. The company's financial stability is further reinforced by substantial cash reserves, contributing to a favorable liquidity position.70
Positive
Cash Flow
The company exhibits strong cash flow metrics, with a free cash flow growth rate of 31.9% year-over-year, indicating robust cash generation capabilities. The operating cash flow to net income ratio is 1.48, illustrating efficient cash conversion. Additionally, the free cash flow to net income ratio is 1.23, highlighting a healthy cash flow relative to earnings. Korn Ferry's cash flow performance supports its operational sustainability.65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.79B | 2.76B | 2.80B | 2.86B | 2.64B | 1.82B |
| Gross Profit | 731.48M | 717.99M | 618.49M | 2.60B | 2.51B | 1.74B |
| EBITDA | 446.49M | 445.56M | 321.58M | 389.94M | 521.72M | 254.82M |
| Net Income | 250.09M | 246.06M | 169.15M | 209.53M | 326.36M | 114.45M |
Balance Sheet | ||||||
| Total Assets | 3.63B | 3.86B | 3.68B | 3.57B | 3.46B | 3.06B |
| Cash, Cash Equivalents and Short-Term Investments | 721.13M | 1.04B | 983.75M | 888.86M | 1.04B | 914.45M |
| Total Debt | 524.37M | 571.21M | 580.27M | 561.24M | 595.30M | 598.78M |
| Total Liabilities | 1.73B | 1.99B | 1.94B | 1.92B | 1.91B | 1.69B |
| Stockholders Equity | 1.89B | 1.87B | 1.73B | 1.65B | 1.54B | 1.37B |
Cash Flow | ||||||
| Free Cash Flow | 279.59M | 301.88M | 228.81M | 273.51M | 452.25M | 220.31M |
| Operating Cash Flow | 354.18M | 364.36M | 283.96M | 343.89M | 501.66M | 251.43M |
| Investing Cash Flow | -130.94M | -125.50M | -53.83M | -323.48M | -184.33M | -61.38M |
| Financing Cash Flow | -186.21M | -190.73M | -116.33M | -152.18M | -137.44M | -66.89M |
Korn Ferry Technical Analysis
Negative
70.38
Price Trends
72.33
Negative
70.85
Negative
68.09
Positive
Market Momentum
-0.46
Positive
40.55
Neutral
0.28
Positive
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 70.38 is below the 20-day moving average (MA) of 72.35, below the 50-day MA of 72.33, and above the 200-day MA of 68.09, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 40.55 is Neutral, neither overbought nor oversold. The STOCH value of 0.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 1.03B | 30.95 | 6.95% | 1.21% | 8.89% | -13.57% | |
68 Neutral | $3.69B | 14.99 | 13.55% | 2.57% | 0.79% | 34.85% | |
64 Neutral | 3.46B | 19.13 | 13.57% | 6.76% | -6.95% | -41.84% | |
59 Neutral | 3.28B | 22.37 | 134.58% | 1.55% | 1.39% | -50.47% | |
54 Neutral | 1.79B | -101.85 | -0.81% | 5.86% | -3.79% | -138.56% | |
49 Neutral | 1.86B | 47.07 | 35.71% | 4.85% | 2.40% | -75.66% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
KFY
Korn Ferry
70.38
-2.94
-4.01%
HSII
Heidrick & Struggles
49.62
11.27
29.39%
NSP
Insperity
49.44
-35.58
-41.85%
MAN
ManpowerGroup
38.59
-31.94
-45.29%
RHI
Robert Half
34.02
-30.39
-47.18%
TNET
TriNet Group
67.58
-28.18
-29.43%
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.