Korn Ferry (KFY) Q4 2026 earnings summary

Executive summary

• Achieved fifth consecutive quarter of top-line growth, with Q4 FY'26 fee revenue reaching $759.8 million, up 7% year-over-year (5% at constant currency), and full-year fee revenue at $2.9 billion, also up 7% year-over-year.

• Adjusted EBITDA for Q4 was $129.5 million (margin 17.0%), with adjusted diluted EPS at $1.40, both up 7% and 6% year-over-year, respectively.

• Net income attributable to shareholders was $73.1 million for Q4 (margin 9.6%) and $277.4 million for the year (margin 9.5%), both margins up versus prior year.

• Strong client retention, with marquee and diamond accounts generating nearly 40% of total fee revenues.

• Technology platform "Talent Suite" drives scalable, integrated solutions and unique analytics.

Financial highlights

• Q4 consolidated fee revenue up 7% year-over-year to $760 million; full-year fee revenue up 7% to $2.9 billion.

• Adjusted EBITDA for Q4 grew 7% to $130 million, with a margin of 17%; full-year adjusted EBITDA near $500 million, up 7%.

• Adjusted diluted EPS for Q4 up 6% to $1.40; full-year adjusted EPS up 8% to $5.28.

• Net income attributable to shareholders was $73.1M, up 14% YoY and 12% sequentially.

• Investable cash increased to $729M, up 9% YoY; cash and cash equivalents at year-end: $1.1 billion.

Outlook and guidance

• Q1 FY 2027 fee revenue expected between $725 million and $745 million.

• Adjusted EBITDA margin projected around 17%; adjusted diluted EPS guidance of $1.32–$1.38.

• Estimated remaining fees under contract at Q4-end were nearly $1.9 billion, up 10% year-over-year, with $1.06 billion expected to be recognized in the next 12 months.

• Dividend increased 15% to $2.20 per share, marking the seventh increase in six years.

• Guidance assumes no material negative impact from geopolitical or economic disruptions.