What drove KFY's EPS surge in Q3 2025?

Korn Ferry's (NYSE: KFY) EPS surged in Q3 2025 due to several key factors:

1. **Strategic Focus on High-Impact Engagements and Digital Solutions**: Korn Ferry's pivot towards high-impact engagements and enhanced digital solutions has driven growth. This strategic shift has resonated well with clients, resulting in improved fee revenues across key segments.
2. **Strong New Business Wins and Client Retention**: The company's Recruitment Process Outsourcing (RPO) segment saw a 4% increase in fee revenue, driven by new client wins and increased demand from existing clients. Similarly, the Executive Search segment experienced a 3% increase in fee revenue, attributed to a higher number of engagements billed. This indicates effective client engagement and retention strategies.
3. **Operational Efficiency and Cost Management**: Korn Ferry's adjusted EBITDA grew by 13% year-over-year, indicating robust operational efficiency and cost management. The company's adjusted EBITDA margin improved by 190 basis points to 17.1%, reflecting enhanced profitability.
4. **Dividend Hike and Share Repurchases**: The company's board approved a 30% increase in its quarterly cash dividend, payable on April 15 to stockholders of record on March 27, 2025. During the quarter, the company repurchased 237,000 shares of stock for $17.9 million. Such shareholder-friendly measures can boost investor confidence and potentially influence EPS through reduced share count.

In summary, Korn Ferry's EPS surge in Q3 2025 was driven by a combination of strategic growth initiatives, operational efficiency, and effective client engagement and retention strategies.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|KFY|KFY.N|Korn Ferry|2025 Q1|31.46067415730336|1.17|169|
|KFY|KFY.N|Korn Ferry|2025 Q2|2949.9999999999995|1.14|169|
|KFY|KFY.N|Korn Ferry|2025 Q3|-2.654867256637151|1.1|169|

|code|Ticker|Name|Date|EPS Surprise YoY|EPS Surprise|market_code|
|---|---|---|---|---|---|---|
|KFY|KFY.N|Korn Ferry|20241231||0.13|169|
|KFY|KFY.N|Korn Ferry|20250331|-25.000000000000007|0.06|169|
|KFY|KFY.N|Korn Ferry|20250630|-100|0|169|
|KFY|KFY.N|Korn Ferry|20250930|-25.000000000000007|0.06|169|