Korn Ferry (KFY) Q4 2026 Financial Results Summary
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Korn Ferry (KFY) Q4 FY'26: Revenue Growth Continues, Margins Improve — Positive Outlook
Korn Ferry (NYSE: KFY) reported its fourth quarter results for fiscal year 2026, showcasing a solid performance with fee revenue of $759.8 million, reflecting a year-over-year increase of $47.6 million or 7%. This growth is consistent with the company's full-year performance, where total fee revenue reached $2.9 billion, also up 7% from the previous year.
Key Financial Metrics
- Q4 FY'26 Fee Revenue: $759.8 million, up $47.6 million or +7% YoY
- Full Year FY'26 Fee Revenue: $2.9 billion, up $191.5 million or +7% YoY
- Q4 FY'26 Net Income: $73.1 million, up $8.9 million or +13.9% YoY
- Q4 FY'26 Adjusted EBITDA: $129.5 million, up $8.4 million or +6.9% YoY
- Q4 FY'26 Diluted EPS: $1.39, up $0.18 or +14.9% YoY
- Full Year FY'26 Diluted EPS: $5.22, up $0.62 or +13.4% YoY
Analyst View
This quarter represents a positive outcome for shareholders, as Korn Ferry not only achieved revenue growth but also improved its net income and margins. The net income margin increased to 9.6%, up from 9.0% in the prior year, indicating better operational efficiency. The company’s ability to maintain a consistent growth trajectory, even in a challenging economic environment, is commendable.
The Adjusted EBITDA margin remained stable at 17.0%, reflecting effective cost management despite rising compensation and benefits expenses. The increase in diluted earnings per share to $1.39 is particularly noteworthy, as it demonstrates Korn Ferry's ability to enhance shareholder value.
Shareholder Returns and Guidance
During the quarter, Korn Ferry repurchased 1,240,458 shares for $78.8 million and paid dividends totaling $28.3 million. This commitment to returning capital to shareholders is a positive signal of the company's financial health and confidence in future performance.
Looking ahead, Korn Ferry provided guidance for the first quarter of fiscal year 2027, expecting fee revenue to be in the range of $725 million to $745 million and diluted earnings per share to range between $1.32 to $1.38. This guidance suggests continued growth, albeit at a potentially slower pace than the previous year.
Forward Catalysts
Investors should keep an eye on Korn Ferry's performance in the upcoming quarter, particularly how it navigates potential geopolitical challenges and economic fluctuations. The company's focus on expanding its Professional Search & Interim segment, which saw a 14% increase in fee revenue this quarter, will be crucial for sustaining growth. Additionally, any updates on new client acquisitions or strategic initiatives will be important indicators of future performance.
In summary, Korn Ferry's fourth quarter results reflect a robust operational performance, with significant revenue growth and improved margins. The company's proactive approach to shareholder returns and its optimistic guidance for the next quarter position it favorably in the market.
Note: All amounts are in thousands.
CONSOLIDATED STATEMENTS OF INCOME
| Three Months Ended | April 30, 2026 | April 30, 2025 | Year Ended | April 30, 2026 | April 30, 2025 |
|---|---|---|---|---|---|
| Fee Revenue | $759,772 | $712,000 | $2,907,XXX | $2,730,XXX | |
| Reimbursable Out-of-Pocket | 8,484 | 7,779 | $31,172 | 30,998 | |
| Total Revenue | 768,256 | 719,800 | $2,938,XXX | $2,761,XXX | |
| Compensation and Benefits | 486,737 | 443,500 | $1,867,XXX | $1,758,XXX | |
| General and Administrative | 67,659 | 68,623 | $247,727 | $258,400 | |
| Reimbursable Expenses | 8,484 | 7,779 | $31,172 | 30,998 | |
| Cost of Services | 82,262 | 74,827 | $319,150 | $285,000 | |
| Depreciation and Amortization | 21,591 | 20,531 | $98,844 | $80,287 | |
| Restructuring Charges, Net | — | — | $— | $1,892 | |
| Total Operating Expenses | 666,733 | 615,200 | $2,563,XXX | $2,414,XXX | |
| Operating Income | 101,523 | 104,500 | $374,743 | $346,300 | |
| Other Income (Loss), Net | 6,410 | -10,300 | $33,705 | $18,953 | |
| Interest Expense, Net | -5,056 | -5,331 | $-19,998 | $-20,300 | |
| Income Before Provision for Income Taxes | 102,877 | 88,927 | $388,450 | $344,900 | |
| Income Tax Provision | 29,052 | 23,789 | $107,630 | $93,836 | |
| Net Income | 73,825 | 65,138 | $280,820 | $251,000 | |
| Net Income Attributable to Noncontrolling Interests | -691 | -894 | $-3,386 | $-5,014 | |
| Net Income Attributable to Korn Ferry | $73,134 | $64,244 | $277,434 | $246,000 | |
| Earnings Per Share - Basic | $1.42 | $1.23 | $5.33 | $4.69 | |
| Earnings Per Share - Diluted | $1.39 | $1.21 | $5.22 | $4.60 | |
| Weighted-Average Shares Outst. | 50,932 | 51,599 | 51,428 | $51,778 | |
| Weighted-Average Shares Diluted | 51,922 | 52,504 | 52,519 | $52,806 |
Note: All amounts are in thousands.
CONSOLIDATED BALANCE SHEETS
| April 30, 2026 | April 30, 2025 | |
|---|---|---|
| ASSETS | ||
| Cash and Cash Equivalents | $1,095,445 | $1,006,964 |
| Marketable Securities | 38,914 | 36,388 |
| Receivables Due from Clients, Net of Allowance for Doubtful Accounts | 573,350 | 565,255 |
| Income Taxes and Other Receivables | 75,410 | 38,394 |
| Unearned Compensation | 64,421 | 61,649 |
| Prepaid Expenses and Other Assets | 58,437 | 41,488 |
| Total Current Assets | 1,905,977 | 1,750,138 |
| Marketable Securities, Non-current | 247,132 | 233,626 |
| Property and Equipment, Net | 191,531 | 173,610 |
| Operating Lease Right-of-Use Assets, Net | 170,986 | 152,712 |
| Cash Surrender Value of Company-Owned Life Insurance Policies, Net of Loans | 289,058 | 252,621 |
| Deferred Income Taxes | 113,207 | 144,560 |
| Goodwill | 950,636 | 948,832 |
| Intangible Assets, Net | 45,858 | 70,193 |
| Unearned Compensation, Non-current | 118,592 | 106,965 |
| Investments and Other Assets | 31,799 | 27,967 |
| Total Assets | $4,064,776 | $3,861,224 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Accounts Payable | 49,682 | 58,884 |
| Income Taxes Payable | 19,573 | 23,079 |
| Compensation and Benefits Payable | 570,242 | 530,473 |
| Operating Lease Liability, Current | 28,111 | 38,573 |
| Other Accrued Liabilities | 314,402 | 304,589 |
| Total Current Liabilities | 982,010 | 955,598 |
| Deferred Compensation and Other Retirement Plans | 510,774 | 477,770 |
| Operating Lease Liability, Non-current | 164,899 | 131,762 |
| Long-term Debt | 398,565 | 397,736 |
| Deferred Tax Liabilities | 5,723 | 5,981 |
| Other Liabilities | 23,902 | 20,238 |
| Total Liabilities | 2,085,873 | 1,989,085 |
| Stockholders' Equity | ||
| Common Stock: | ||
| $0.01 Par Value, 150,000 Shares Authorized | 284,370 | 364,425 |