Korn Ferry 2026 Q2 Earnings 19% EPS Growth and 7% Revenue Surge

Korn Ferry (KFY) reported Q2 2026 earnings that exceeded expectations, with revenue rising 7% to $729.80 million and EPS climbing 19% to $1.38. The company maintained in-line guidance for Q3, reflecting confidence in its strategic initiatives.

Revenue

Korn Ferry’s Q2 revenue reached $729.80 million, driven by robust growth across segments. Executive Search led with $225.95 million in revenue, while Professional Search & Interim and Consulting contributed $141.10 million and $172.84 million, respectively. Digital and RPO segments added $91.03 million and $90.78 million, with reimbursed expenses rounding out the total at $8.10 million.

Earnings/Net Income

Net income surged 17.8% to $73.42 million, with EPS rising 19% to $1.38. This strong performance underscores the company’s ability to leverage strategic growth and operational efficiency.

Post-Earnings Price Action Review

The strategy of buying KFY when earnings beat and holding for 30 days delivered moderate returns but underperformed the benchmark. The strategy achieved a 56.02% return, while the benchmark returned 88.30%. The Sharpe ratio was 0.31, indicating a reasonable risk-adjusted return. However, the maximum drawdown was 0.00%, suggesting the strategy had no risk, which may not be ideal for risk-tolerant investors.

Additional News

Korn Ferry announced a $0.48 per share quarterly dividend, reflecting a 2.91% yield and continuing its 11-year streak of consistent payouts. The board also approved a $250 million increase to its share repurchase program, raising the total available capacity to $331.4 million. This move aligns with the company’s capital allocation strategy and confidence in its financial resilience.

CEO Commentary

CEO Gary Burnison highlighted the company’s “outstanding” performance, driven by leadership demand, retirements, and evolving work-life dynamics. He emphasized the “We Are Korn Ferry” strategy, integrating solutions and leveraging AI for cross-selling and market expansion.

Guidance

For Q3 2026, Korn Ferry expects fee revenue between $680 million and $694 million, adjusted EBITDA margin of 17.2%-17.4%, and adjusted EPS of $1.19-$1.25. GAAP EPS is projected at $1.15-$1.21. The company remains focused on operational excellence and strategic growth.