Sep 9, 2026, 6:50 AM ETIndustrials

Korn Ferry — Q1 FY27 Earnings Summary

KFYKORN FERRY

Financial Performance

Fee revenue was $756.5 million, a 7% increase year-over-year at both actual and constant currency.
Total revenue was $764.6 million, compared to $715.5 million in Q1 FY'26.
Net income attributable to Korn Ferry was $69.0 million, a 4% increase year-over-year, with a margin of 9.1% (down from 9.4% in Q1 FY'26).
Adjusted EBITDA was $128.2 million, a 7% increase year-over-year, with a margin of 17.0% (flat year-over-year).
Diluted earnings per share (EPS) were $1.32, up 5% year-over-year; adjusted diluted EPS were $1.43, up 9% year-over-year.
Estimated remaining fees under existing contracts were $1.915 billion, up 14% year-over-year.
New business awarded was $832.3 million, up from $742.2 million in Q1 FY'26.
Fee earner new business productivity was $1,840 (in thousands), up from $1,610 in Q1 FY'26.
Integration and acquisition costs were $7.6 million, compared to $1.5 million in Q1 FY'26.
Compensation and benefits expenses and general and administrative expenses increased year-over-year, partially offsetting revenue growth.

Q2 FY'27 fee revenue is expected to be between $860 million and $878 million.
Q2 FY'27 adjusted EBITDA margin is expected to range from 16.8% to 17.2%.
Q2 FY'27 adjusted diluted EPS is expected to be between $1.30 and $1.40.
Guidance includes the net after-tax impact of two months of incremental intangible asset amortization, incremental net interest expense, and incremental shares issued due to the AMS acquisition closed on September 1, 2026.
The company is not providing an outlook for consolidated net income attributable to Korn Ferry margin or consolidated diluted EPS due to the inability to estimate integration and acquisition costs with reasonable certainty.

Fee revenue grew in all regions year-over-year.
Search grew 10% year-over-year; Workforce Solutions grew 11% year-over-year.
Americas: Fee revenue was $442.1 million (up 9%), driven by 14% growth in both Search and Workforce Solutions. Adjusted EBITDA margin was 26.3%.
EMEA: Fee revenue was $227.7 million (up 4%), led by Workforce Solutions (up 8%) and Talent & Organizational Solutions (up 4%). Adjusted EBITDA margin was 16.4%.
APAC: Fee revenue was $86.7 million (up 1% actual, 2% constant currency), driven by a 7% increase in Search, offset by declines in other solution groups. Adjusted EBITDA margin was 22.2%.

The company describes the combination of Korn Ferry and AMS as creating a global leader in talent and organizational consulting.
AMS is characterized as a world-class firm with technology-enabled talent solutions at scale and long-term contracted client relationships.
The company aims to be the "world's conductor of talent and organizational orchestration" under its "We Are Korn Ferry" strategy.

Forward-looking statements involve risks including global and local political/economic developments, inflation, trade wars, interest rates, labor market conditions, and geopolitical tensions (including the Middle East conflict).
Risks include shifts in demand due to automation, dependence on attracting/retaining qualified consultants, and the impact of inflationary pressures on profitability.
Specific challenges include the ability to successfully integrate acquired businesses (including AMS), recognize anticipated benefits of the AMS acquisition, and manage growth profitably.
Other risks include cyber security vulnerabilities, data privacy laws, changes in accounting estimates, and the potential for impairment in goodwill or intangible assets.

CEO Gary D. Burnison expressed pleasure with the quarterly performance, citing the sixth consecutive quarter of top-line growth and the momentum/durability of the business.
Management highlighted the value created for clients and the strategic complementarity of the AMS acquisition.
The tone is confident regarding the integration of AMS and the future of the combined entity.

The acquisition of AMS closed on September 1, 2026.
The company reported $7.6 million in integration/acquisition costs for the quarter.
Earnings conference call webcast was hosted by CEO Gary Burnison, CFO Robert Rozek, SVP Gregg Kvochak, and VP Tiffany Louder.
The company is not providing a quantitative reconciliation of GAAP measures to non-GAAP measures for the forward-looking period due to the uncertainty of integration costs.