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Korn Ferry
(NYSE:KFY)
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Rating:71Outperform
Price Target:
$79.00
▼(-6.40% Downside)
Action:Reiterated
Date:09/29/26
KFY’s score is driven by solid financial health and cash generation, supported by attractive valuation (moderate P/E and a ~3.66% dividend yield) and a strongly positive earnings call centered on continued growth and the AMS combination. The main constraint is weak technicals (downtrend and bearish momentum despite oversold readings), with integration and macro sensitivity as additional risks.
Positive Factors
Expanded global talent platform
The completed AMS combination materially broadens Korn Ferry’s geographic reach, workforce solutions, and consulting capabilities. Greater scale and a wider service set can support cross-selling, larger client mandates, and stronger competitive positioning across the global talent market over multiple quarters.
Negative Factors
Exposure to macroeconomic hiring demand
Korn Ferry’s search, consulting, and workforce-solutions demand is tied to corporate hiring and discretionary organizational spending. A prolonged difficult macro environment could delay client decisions, reduce assignment volumes, and pressure revenue growth and utilization despite the firm’s diversified offerings.
Read all positive and negative factors
Positive Factors
Negative Factors
Expanded global talent platform
The completed AMS combination materially broadens Korn Ferry’s geographic reach, workforce solutions, and consulting capabilities. Greater scale and a wider service set can support cross-selling, larger client mandates, and stronger competitive positioning across the global talent market over multiple quarters.
Read all positive factors
Korn Ferry (KFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.27B
Dividend Yield3.33%
Average Volume (3M)613.62K
Price to Earnings (P/E)14.4
Beta (1Y)0.74
Revenue Growth6.94%
EPS Growth12.91%
CountryUS
Employees8,965
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)5.42
Shares Outstanding54,558,850
10 Day Avg. Volume549,133
30 Day Avg. Volume613,619
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)1.73
Price to Sales (P/S)1.16
P/FCF Ratio10.54
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue1.34
Enterprise Value/Gross Profit13.60
Enterprise Value/Ebitda7.82
Forecast
1Y Price Target
$92.00Price Target Upside9.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)5.71
Revenue Forecast (FY)$3.50B
Korn Ferry Business Overview & Revenue Model
Company Description
Korn Ferry, established in Los Angeles, California, in 1969, delivers extensive organizational advisory solutions across the globe. The firm operates through four specialized divisions: Consulting, Digital, Executive Search, and Recruitment Proces...
How the Company Makes Money
Korn Ferry generates revenue primarily by providing fee-based professional services and talent solutions to corporate and institutional clients. Its revenue model is diversified across several major streams: (1) Search and recruitment fees: Korn F...
Korn Ferry Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Positive
The call was strongly positive, with broad-based revenue and new-business growth, a sixth consecutive quarter of top-line growth, higher adjusted EBITDA and EPS, growing backlog and referrals, and significant strategic and cross-selling opportunities from the completed AMS combination. Management was highly confident about achieving AMS EBITDA objectives and future growth. The primary challenges discussed were the difficult macroeconomic environment, Middle East-related pressure on EMEA, historical weakness in APAC and China, seasonal softness in the third quarter, and the time required to complete systems integration.Positive Updates
Sixth Consecutive Quarter of Top-Line Growth
Korn Ferry reported that all regions were up in the first quarter of fiscal 2027, marking the sixth consecutive quarter of top-line growth.
Negative Updates
Challenging Macroeconomic Environment
Management described the environment as challenging, citing higher rates, difficulty generating growth for most companies outside data centers or AI, and uncertainty around increasing rates.
Read all updates
Q1-2027 Updates
Positive
Negative
Sixth Consecutive Quarter of Top-Line Growth
Korn Ferry reported that all regions were up in the first quarter of fiscal 2027, marking the sixth consecutive quarter of top-line growth.
Read all positive updates
Company Guidance
For the second quarter of fiscal 27, assuming no further changes in worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates, and including the addition of AMS for 2 months, September and October, fee revenue is expected to range from $860 million to $878 million, adjusted EBITDA margin is expected to range from 16.8% to 17.2%, and adjusted diluted earnings per share are expected to range from $1.30 to $1.40 per share, including the net after tax impact of 2 months of incremental intangible asset amortization, incremental interest net interest expense and incremental shares issued in connection with the acquisition of AMS; historically, the firm’s growth rate is probably gonna be around 10%-11%, 12%, something like that, with the prior 60% organic and 40% inorganic mix changing to more like 50-50 with AMS; AMS is expected to reach $140 million of run rate EBITDA within 1 year of the date of close, with the incremental 40 expected faster than that, and the company is targeting a May 1, 2027 date for moving everybody onto a common platform.Korn Ferry Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.99B | 2.94B | 2.76B | 2.80B | 2.86B | 2.64B |
| Gross Profit | 294.68M | 752.49M | 2.45B | 2.46B | 2.60B | 2.51B |
| EBITDA | 512.43M | 507.29M | 445.56M | 321.58M | 389.94M | 521.72M |
| Net Income | 279.76M | 277.43M | 246.06M | 169.15M | 209.53M | 326.36M |
Balance Sheet | ||||||
| Total Assets | 3.82B | 4.06B | 3.86B | 3.68B | 3.57B | 3.46B |
| Cash, Cash Equivalents and Short-Term Investments | 816.29M | 1.13B | 1.04B | 983.75M | 888.86M | 1.04B |
| Total Debt | 593.10M | 591.58M | 568.07M | 580.27M | 565.66M | 595.30M |
| Total Liabilities | 1.82B | 2.09B | 1.99B | 1.94B | 1.92B | 1.91B |
| Stockholders Equity | 1.99B | 1.97B | 1.87B | 1.73B | 1.65B | 1.54B |
Cash Flow | ||||||
| Free Cash Flow | 318.71M | 324.29M | 301.88M | 228.81M | 273.51M | 452.25M |
| Operating Cash Flow | 403.93M | 414.19M | 364.36M | 283.96M | 343.89M | 501.66M |
| Investing Cash Flow | -57.08M | -98.72M | -125.50M | -53.83M | -323.48M | -184.33M |
| Financing Cash Flow | -239.36M | -238.43M | -190.73M | -116.33M | -152.18M | -137.44M |
Korn Ferry Technical Analysis
Positive
84.40
Price Trends
77.30
Positive
76.16
Positive
70.00
Positive
Market Momentum
-0.28
Negative
64.16
Neutral
85.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFY, the sentiment is Positive. The current price of 84.4 is above the 20-day moving average (MA) of 72.48, above the 50-day MA of 77.30, and above the 200-day MA of 70.00, indicating a bullish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 64.16 is Neutral, neither overbought nor oversold. The STOCH value of 85.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KFY.
Korn Ferry Risk Analysis
Korn Ferry disclosed 47 risk factors in its most recent earnings report. Korn Ferry reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Korn Ferry Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $4.27B | 14.45 | 14.14% | 3.33% | 6.94% | 12.91% | |
64 Neutral | $1.05B | 27.59 | 29.32% | 2.72% | -1.26% | -11.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $4.70B | 37.60 | 9.74% | 5.14% | -2.94% | -21.03% | |
58 Neutral | $2.08B | -129.62 | -24.52% | 4.41% | 2.64% | -140.86% | |
54 Neutral | $2.21B | 18.42 | 5.75% | 3.03% | 7.25% | ― |
* Industrials Sector Average
KFY
Korn Ferry
78.30
10.14
14.88%
NSP
Insperity
54.44
12.17
28.81%
KFRC
Kforce
58.50
31.97
120.51%
MAN
ManpowerGroup
47.53
16.23
51.86%
RHI
Robert Half
45.87
18.87
69.92%
Korn Ferry Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Korn Ferry Shareholders Approve Expanded Long-Term Incentive Plan
Positive
Sep 29, 2026
On August 4, 2026, Korn Ferry’s board unanimously adopted an amended and restated 2022 Stock Incentive Plan, later approved by stockholders at the September 24, 2026 annual meeting, increasing the pool for equity awards by 1,400,000 shares, ...
Business Operations and StrategyFinancial Disclosures
Korn Ferry Realigns Reporting into New Geographic Segments
Positive
Sep 15, 2026
On May 1, 2026, Korn Ferry realigned its organizational reporting structure from a solution-based presentation to a geographic model comprising Americas, EMEA and APAC, while continuing to deliver services through its Search, Talent Organizationa...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Korn Ferry Recasts Segment Data After Global Realignment
Positive
Sep 9, 2026
Korn Ferry has realigned its organizational structure and reportable business segments by geography, effective May 1, 2026 for fiscal year 2027, creating three segments: Americas, Europe, Middle East and Africa, and Asia Pacific. The company stres...
Business Operations and StrategyDividends
Korn Ferry Declares Quarterly Dividend, Affirms Capital Strategy
Positive
Sep 8, 2026
On September 8, 2026, Korn Ferry’s Board of Directors declared a quarterly cash dividend of $0.55 per share, payable on October 15, 2026 to shareholders of record as of September 22, 2026. The decision reflects management’s confidence ...
Business Operations and StrategyM&A Transactions
Korn Ferry Finalizes AMS Acquisition to Expand Globally
Positive
Sep 1, 2026
On September 1, 2026, Korn Ferry completed its acquisition of UK-headquartered talent solutions provider AMS from OMERS Private Equity, positioning the combined firm as a larger global player in talent and organizational consulting. The deal adds ...
Business Operations and StrategyPrivate Placements and Financing
Korn Ferry Reshapes Capital Structure with Debt Redemption
Positive
Aug 19, 2026
On August 18, 2026, Korn Ferry completed the cash redemption of all its outstanding 4.625% Senior Notes due 2027, retiring $400 million in principal at par plus accrued interest after issuing a conditional notice of redemption on August 6, 2026. T...
Business Operations and StrategyPrivate Placements and Financing
Korn Ferry Plans Conditional Redemption of 2027 Senior Notes
Positive
Aug 6, 2026
On August 6, 2026, Korn Ferry announced a conditional plan to redeem its 4.625% Senior Notes due 2027, totaling $400 million in principal, under an indenture originally executed in December 2019. The company intends to execute the full cash redemp...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Korn Ferry Revises Timeline for Auxey Holdco Acquisition
Negative
Aug 3, 2026
On July 29, 2026, Korn Ferry amended its June 27, 2026 purchase and sale agreement with Auxey Holdings (Lux) S.A.S., OMERS Administration Corporation, AMS Cayco Ltd. and other parties, setting September 1, 2026 as the new target date for closing t...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Korn Ferry to Acquire AMS, Expanding Global Talent Services
Positive
Jun 29, 2026
On June 29, 2026, Korn Ferry announced a definitive agreement with OMERS Private Equity to acquire UK-based AMS for approximately £850 million, paid in a mix of cash and Korn Ferry common stock. Korn Ferry plans to fund about $300 million fro...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.