Korn Ferry 2026 Q2 Earnings Strong Performance with 17.8% Net Income Growth

Korn Ferry (KFY) reported fiscal 2026 Q2 earnings on Dec 9, 2025, delivering revenue of $729.80 million (up 7.0% YoY) and net income of $73.42 million (up 17.8% YoY). The results beat revenue estimates by $15.65M and EPS by $0.02, while Q3 guidance aligned with expectations.

Revenue

Fee revenue led the charge at $721.70 million, driven by robust performance in Executive Search ($225.95 million, +10% YoY) and Professional Search & Interim ($141.10 million, +17% YoY). Consulting services ($172.84 million) and digital ($91.03 million) also contributed, though the latter saw a 2% decline. RPO ($90.78 million) and reimbursed out-of-pocket expenses ($8.10 million) rounded out the segments.

Earnings/Net Income

Earnings per share surged 19.0% to $1.38, with net income rising to $73.42 million, reflecting disciplined cost management. The 19% EPS growth underscores Korn Ferry’s effective cost management 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.

CEO Commentary

CEO Gary Burnison highlighted cross-selling via the “We Are Korn Ferry” strategy, with business referrals hitting 27.6% of revenue. He emphasized growth in Executive Search, Professional Search, and Interim segments, attributing success to leadership demand and AI-driven digital transformation.

Guidance

Korn Ferry projects Q3 fee revenue between $680 million and $694 million, with adjusted EBITDA margin targeting 17.2–17.4%. GAAP diluted EPS is forecasted at $1.15–$1.21, reflecting confidence in the “low visibility” economic environment.

Additional News

Korn Ferry announced a $0.48 quarterly dividend (2.9% yield), continuing its 11-year streak of consistent payouts. The company also increased its share repurchase program by $250 million, boosting total capacity to $331.4 million. Director Lori Robinson sold $138,889 in stock, while CEO Gary Burnison sold $1.18 million in shares, signaling mixed insider sentiment.