Korn/Ferry International (NYSE:KFY) Posts Earnings Results, Beats Expectations By $0.07 EPS

Korn/Ferry International (NYSE:KFY) released its earnings results on Wednesday. The business services provider reported $1.43 earnings per share for the quarter, topping analysts’ consensus estimates of $1.36 by $0.07, FiscalAI reports. Korn/Ferry International had a net margin of 9.44% and a return on equity of 14.34%. The firm had revenue of $764.62 million for the quarter, compared to analyst estimates of $737.66 million. During the same period in the prior year, the firm earned $1.26 earnings per share. The business’s quarterly revenue was up 6.9% compared to the same quarter last year. Korn/Ferry International updated its Q2 2027 guidance to 1.300-1.400 EPS.

Here are the key takeaways from Korn/Ferry International’s conference call:

• Positive Sentiment: Korn Ferry reported its sixth consecutive quarter of fee-revenue growth, with first-quarter revenue up 7% year over year to $756 million, adjusted EBITDA up 7% to $128 million, and adjusted EPS up 9% to $1.43.
• Positive Sentiment: The completed AMS combination expands Korn Ferry to nearly 17,000 employees across more than 130 offices and adds substantial RPO, contingent workforce, early-career recruiting, and technology consulting capabilities. Management expects to achieve at least $40 million of incremental annualized EBITDA ahead of its original one-year target.
• Positive Sentiment: New business rose 12% and estimated remaining contract fees increased 14% to $1.92 billion, while the combined company’s backlog is approximately $3.5 billion. Management highlighted AMS’s long-tenured, multi-year client contracts and cross-selling opportunities as sources of greater revenue visibility.
• Neutral Sentiment: Growth was broad-based geographically, led by the Americas at 9%, with EMEA up 4% and APAC returning to 1% growth; search and workforce solutions were the strongest solution areas.
• Negative Sentiment: Second-quarter guidance includes only two months of AMS results and anticipates adjusted EBITDA margins of 16.8%–17.2% and EPS of $1.30–$1.40, with incremental amortization, interest expense, and share issuance from the acquisition weighing on earnings. Management also cited interest-rate uncertainty and ongoing Middle East conflict as macroeconomic risks.

Korn/Ferry International Trading Down 0.9%

NYSE KFY opened at $81.31 on Thursday. The firm’s fifty day moving average price is $80.77 and its 200 day moving average price is $71.20. Korn/Ferry International has a 12 month low of $58.95 and a 12 month high of $87.51. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.94 and a quick ratio of 1.94. The company has a market capitalization of $4.44 billion, a price-to-earnings ratio of 15.52 and a beta of 1.19.

Korn/Ferry International Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 22nd will be issued a $0.55 dividend. The ex-dividend date is Tuesday, September 22nd. This represents a $2.20 annualized dividend and a dividend yield of 2.7%. Korn/Ferry International’s dividend payout ratio is presently 41.98%.

Hedge Funds Weigh In On Korn/Ferry International

Hedge funds have recently made changes to their positions in the company. Royal Bank of Canada increased its position in shares of Korn/Ferry International by 22.7% during the first quarter. Royal Bank of Canada now owns 11,413 shares of the business services provider’s stock worth $775,000 after purchasing an additional 2,112 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Korn/Ferry International by 3.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,567 shares of the business services provider’s stock valued at $2,073,000 after purchasing an additional 1,009 shares during the last quarter. Millennium Management LLC boosted its position in shares of Korn/Ferry International by 566.9% in the 1st quarter. Millennium Management LLC now owns 124,786 shares of the business services provider’s stock valued at $8,464,000 after purchasing an additional 106,076 shares during the period. United Services Automobile Association acquired a new stake in shares of Korn/Ferry International in the 1st quarter valued at about $231,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Korn/Ferry International by 6.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 172,556 shares of the business services provider’s stock worth $11,704,000 after buying an additional 11,020 shares during the last quarter. Hedge funds and other institutional investors own 98.82% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on KFY shares. Robert W. Baird increased their price objective on shares of Korn/Ferry International from $84.00 to $85.00 and gave the company an “outperform” rating in a research report on Wednesday, June 24th. Weiss Ratings raised shares of Korn/Ferry International from a “buy (b-)” rating to a “buy (b)” rating in a research report on Tuesday, June 23rd. Truist Financial lifted their price objective on shares of Korn/Ferry International from $75.00 to $80.00 and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Wall Street Zen upgraded shares of Korn/Ferry International from a “hold” rating to a “buy” rating in a research note on Saturday, September 5th. Finally, UBS Group increased their target price on Korn/Ferry International from $70.00 to $75.00 and gave the company a “neutral” rating in a report on Wednesday, June 24th. Four analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $78.50.

Korn/Ferry International News Summary

Here are the key news stories impacting Korn/Ferry International this week:

• Positive Sentiment: Korn/Ferry reported first-quarter fiscal 2027 adjusted EPS of $1.43, exceeding consensus estimates of approximately $1.35-$1.36 and rising from $1.26 a year earlier. Revenue reached $764.6 million, above the $737.7 million estimate, while revenue increased 6.9% year over year. Korn/Ferry Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Management said the quarter marked the company’s sixth consecutive period of top-line growth, highlighting continued business momentum and demand for its consulting and talent services. Korn Ferry Announces First Quarter Fiscal 2027 Results
• Positive Sentiment: The board declared another quarterly cash dividend of $0.55 per share, payable October 15 to shareholders of record on September 22. The dividend represents an annualized payout of $2.20 and an indicated yield of about 2.7%. Korn Ferry Board Declared Quarterly Cash Dividend
• Neutral Sentiment: Analysts viewed the quarter as solid, but noted that labor-market conditions may be approaching an inflection point, potentially affecting hiring activity and consulting demand. Korn Ferry: Another Solid Quarter As Labor Market Approaches Inflection Point
• Negative Sentiment: Second-quarter adjusted EPS guidance of $1.30-$1.40 fell below the $1.45 analyst consensus. This weaker near-term outlook was the primary reason shares moved lower despite the first-quarter beats. Korn Ferry Shares Slip on Weaker Q2 Earnings Guidance

About Korn/Ferry International

Korn Ferry International is a global organizational consulting firm that partners with clients to design optimal structures, roles and responsibilities. The company’s core offerings include executive search, talent acquisition, leadership development and succession planning. By blending deep industry expertise with data-driven insights, Korn Ferry helps organizations identify, assess and develop executives and high-potential talent for critical roles.

Since its founding in 1969 and with headquarters in Los Angeles, Korn Ferry has expanded its presence to more than 50 offices across North America, Europe, Asia Pacific and Latin America.