Korn Ferry 2026 Q2 Earnings Strong Revenue Growth and 17.8% Net Income Surge

Korn Ferry (KFY) delivered Q2 results that exceeded expectations, with revenue rising 7.0% year-over-year to $729.80 million. The company also reported a 17.8% increase in net income to $73.42 million, and its Q3 guidance aligned with expectations despite seasonal headwinds.

Revenue

Korn Ferry’s total revenue grew to $729.80 million in Q2 2026, driven by robust performance across segments. Fee revenue, the largest contributor, reached $721.70 million, while Consulting and Executive Search segments posted $172.84 million and $225.95 million, respectively. Professional Search & Interim and RPO segments added $141.10 million and $90.78 million, supported by cross-selling initiatives and digital tools. Digital revenue stood at $91.03 million, with reimbursed out-of-pocket expenses at $8.10 million. The performance underscored the firm’s unified "We Are Korn Ferry" strategy, which has strengthened recurring client relationships.

Earnings/Net Income

Earnings per share (EPS) surged 19.0% to $1.38, outpacing the prior-year period’s $1.16. Net income rose to $73.42 million, reflecting improved operational efficiency and higher fee revenue. The EPS growth highlights the company’s ability to convert top-line gains into profitability, positioning it as a strong performer in the business services sector.

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 praised the "outstanding" Q2 performance, attributing success to AI-driven talent solutions and the new Talent Suite platform. He emphasized growth in Executive Search (10% YoY), Professional Search (7% YoY), and Interim (24% YoY), while highlighting the 27.6% business referral rate and strong renewal rates as key differentiators.

Guidance

CFO Robert Rozek provided Q3 2026 guidance: fee revenue of $680–694 million, adjusted EBITDA margin of 17.2–17.4%, and adjusted diluted EPS of $1.19–$1.25. The guidance accounts for seasonal holiday impacts and assumes stable geopolitical conditions. Remaining fees under contracts reached $1.84 billion, up 20% YoY, with $1 billion expected within 12 months.

Additional News

Korn Ferry declared a $0.48 per share quarterly dividend (2.93% yield) and increased its share repurchase program by $250 million, raising the total capacity to $331.4 million. The firm also announced $70 million in shareholder returns and $43 million in capital expenditures for technology upgrades. Director Lori Jean Robinson sold $138,889 in stock, and CEO Gary Burnison sold $1.18 million in shares, reflecting mixed insider activity.