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Image source: The Motley Fool. Wednesday, Sept. 9, 2026 at 12 p.m. ET Chief Executive Officer - Gary D. Burnison Chief Financial Officer - Robert Rozek Senior Vice President, Business Development & Analytics - Gregg Kvochak Vice President, Investor Relations - Tiffany Louder Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry First Quarter of Fiscal Year 27 Conference Call. At this time, all participants are in a listen-only mode. Following the prepared remarks, we will conduct a question-and-answer session. As a reminder, this conference call is being recorded for replay purposes. We have also made available in the Investor Relations section of our website at kornferry.com, a copy of the financial presentation that we will be reviewing with you today. Gregg Kvochak: Before I turn the call over to your host, Mr. Gary D. Burnison, let me first read a cautionary statement to investors. Certain statements made in the call today, such as those relating to future performance, plans and goals, constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 2000. Although the company believes the expectations reflected in such forward looking statements are based on reasonable assumptions. Investors are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties which are beyond the company's control. Additional information concerning such risks and uncertainties can be found in the release relating to this presentation and in the periodic and other reports filed by the company with the SEC. Including the company's annual report for fiscal year 26 and in the company's soon to be filed quarterly report for the quarter ended 07/31/2026. Also, some of the comments today may reference non GAAP financial measures such as constant currency amounts, EBITDA and adjusted EBITDA. Additional information concerning these measures, including reconciliations to the most directly comparable GAAP financial measures, is contained in the financial presentation and earnings release relating to this call, both of which are posted in the Investor Relations section of the company's website at www.kornferry.com. Operator: With that, I will turn the call over to Mr. Burnison. Please go ahead, Burnison. Gary D. Burnison: Thanks, Regina, and thank you, everybody, for joining us. I am going to have the team walk through the numbers. But first, I will just comment that our performance was absolutely outstanding. All regions are up and it marks our 6th consecutive quarter of top line growth. Which underscores the strength of our strategy. And we remain focused on executing with discipline. Investing in opportunities that will drive sustainable impact and create lasting value for our shareholders. All of which reflects the confidence we have in our strategic direction and long term outlook. As I reflected during our previous quarterly call, I used to talk about opportunities measured in the hundreds of millions of dollars. Today, I think in terms of opportunities measured in the billions, And last week, we took another significant step in that direction with the completion of our combination with AMS. This brings together 2 iconic brands and creates a global leader in talent and organizational consulting. AMS is a world class firm that propels our we are Korn Ferry strategy. To be the world's conductor of talent and organizational orchestration. We now offer 1 of the most comprehensive organizational talent solution portfolios in the world. The combined firm has nearly 17 thousand colleagues, in more than 130 offices. Complimentary strengths and more expansive industry coverage. All united in a shared commitment to accelerate our clients success. Together with AMS, we have profound operational capability delivering technology enabled talent solutions at scale supported by long term contracted client relationships. We have deepened our client centric approach as we expand the breadth of our solutions with every relationship. And here, just a couple examples. At a global energy company, we are supporting their strategic and talent transformation. Impacting 60 thousand roles. Across 200 business units. So we are a global consumer products company with more than 100 thousand employees. Turned to us for worldwide delivery of org design analytics, and workforce planning. And at the heart of how we serve our largest clients is talent suite. Powering our work, and enabling better people decisions at scale. In fact, more than 90% of our Marquee and Diamond accounts have an active TalentSuite subscription today. I could not be more excited about the evolution and the trajectory of our firm Today's Korn Ferry has a unique ability to serve our clients across the entire talent spectrum. Search is about identifying talent. Workforce solutions is scaling that talent. And talent in organizational solutions is unlocking their potential. there is no question that technology will continue to play a significant role in the future. Bridging the imbalance of supply and demand of labor. But it is not technology alone. People are the catalyst for organizational success. Human beings, not human doings. it is a belief that defines who we are and that is why Korn Ferry is in the people business. With that, Bob, I will turn it over to you. Robert Rozek: Thanks, Gary, and good afternoon or good morning, everyone. Our financial performance continues to steadily improve and outpace the broader industry. In the first quarter of FY 27, our fee revenue grew for the 6th consecutive quarter with strong earnings growth and steady profitability. Our improving performance in this ever changing business environment really continues to underscore both the effectiveness of our strategy the hard work and talent of our colleagues, and our operational excellence. Before reviewing the quarter in detail, and as we announced on our fourth quarter earnings call for fiscal year 26, we are now reporting our financial results of the company in 3 geographic segments. The Americas, EMEA, and APAC. This new reporting structure aligns with our We Are Korn Ferry go-to-market initiatives and actually with how our clients engage with us. To assist with the transition from a global solution focus to regional geographies, The slides posted in our investor presentation include 3 new solution groupings within each geographic region. The 3 new solution groupings are search, which is the old executive search and professional search, talent and organizational solutions which is comprised of consulting and digital, and then workforce solutions, which is comprised of RPO, and interim. Now turning to our first quarter performance highlights. Estimated remaining fees under existing contracts grew 14% year over year to $1.92 billion led by global new business growth in workforce solutions. Our internal business referral rate increased to 29.4% of consolidated fee revenue it is up by about 300-basis-points year over year our marquee and diamond accounts remained steady at about 40% of consolidated fee revenue. Now both of these metrics really demonstrate the fee revenue synergies we are creating with our We Are Korn Ferry go-to-market activities. Our consolidated new business grew 12% year-over-year and fee revenue grew in all regions and all industry groups. Fear and our productivity, which we measure as new business per average fee earners annualized, grew year over year in all regions. Now I will talk a little bit about the company results. Consolidated fee revenue grew 7% year over year to $756 million again, marking our 6th consecutive quarter of growth. Earnings and profitability also remained strong. Adjusted EBITDA grew $8 million or 7% year over year to $128 million Adjusted EBITDA margin was flat year over year at 17% and adjusted diluted earnings per share grew $0.12 or 9% year over year to $1.43. As previously mentioned, our estimated remaining fees under existing contracts were $1.92 billion at the end of the quarter and we estimate about 56% or $1.1 billion will be recognized within the next 4 quarters and the remaining 44% or $835 million will be recognized beyond the next year. Turning to our regional results. Fee revenue in The Americas grew 9% year over year to $442 million led by growth in search and workforce solutions EMEA fee revenue continued to strengthen growing 4% year over year to $228 million Growth was broad based with strength in all solution groups. And APAC fee revenue inflected to growth in the first quarter reaching $87 million up 1% year over year led by search. Finally, we continue to maintain a disciplined balanced approach to capital allocation over the quarter. During the quarter, we paid $30 million of dividends and invested $15 million in capital expenditures. In the future, we will be inclined to use investable cash for the reduction of debt associated with the acquisition of AMS However, we will also closely monitor our share price and use capital for that if we find that more attractive. Turning to our outlook 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. Now it is only for 2 months. September and October. Our second quarter fee revenue is expected to range from $860 million to $878 million Our 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. We have a page in the investor deck and provided some guidance assumptions And you will find adjusted diluted earnings per share includes the net after tax impact of the 2 months of incremental intangible asset amortization incremental interest net interest expense and incremental shares issued in connection with the acquisition of AMS. In closing, we remain focused on executing our We Are Korn Ferry go-to-market initiatives. Which are driving deeper more durable client relationships. Additionally, with the recent addition of AMS to the Korn Ferry family, we will strengthen our position in RPO and interim while broadening our capabilities into contingent workforce solutions and early career and campus recruiting. AMS has a substantial backlog of multiyear contracts and long tenured client relationships. Going forward, it is our goal to deepen the value of those client relationships introducing clients to all that Korn Ferry offers, Together with AMS, we are a much stronger company with greater capabilities to drive client business performance through their most precious asset which is their people. With that, we would be glad to answer any questions you may have. Operator: We will now begin the question and answer session. Our first question will come from the line of Tobey Sommer with Truist. Please go ahead. Tobey Sommer: Good afternoon. This is Tyler on for Tobey. I just wanted to start with the new reporting structure. Can you maybe give us how we should think about growth rates in each of these segments going forward? Gary D. Burnison: Well, when you look at the firm as a whole, that is what that is what I tend to look at. And, you know, this was precipitated. We made this decision several quarters ago that we had to change how we were facing off with clients. And then what we wanted was not a, you know, an isolated solution by solution approach, but rather a holistic face off with our clients. As we are Korn Ferry. And so that is been, you know, a very systematic effort that is been driven top down and bottom up, top down through our marquee and diamond accounts and then bottom up. Every single day through what we are doing in terms of looking at new engagements that are open. So, you know, I look at the firm overall over the last you know, 10 years, 20 years and you would find the growth rate that is probably gonna be around 10%-11%, 12%, something like that. Up until this latest investment that we have made, we looked at that growth rate and we said 60% was organic. 40% was inorganic, obviously with the combination of AMS. That changes those calculations and it is more like you know, 50-50. So I first look at the overall firm's growth rate historically and, you know, when I look at the demographic trends and what is happening in the world, there is no reason to believe I do not certainly see any reason that kind of growth rate that we have experienced in the past we would not continue to experience. Now you know, from quarter to quarter there is going to be there is gonna be regional differences. And, you know, APAC going back now several quarters has been impacted by you know, the socioeconomic changes that have been happening, particularly for example, in China. And so that you know, that region has been impacted pretty severely by that fall off since the pandemic. EMEA, over the last several quarters, is actually been our best performing region. More recently over the last couple of quarters, you will see that The Middle East has had a pretty big impact on the results there. Then Americas, you know, has been steady. So you know, I tend to look at it from a geographic perspective, the total first, so then each geography. And what it what it really reflects is, you know, how we are trying to drive you know, a client centric approach. And then, you know, when you look at solutions, this last quarter, the workforce solutions group and search, you know, those were both outstanding. Really, really outstanding growth rates, you know, 10% to 11%. And, you know, looking at new business over the last several months, it continues to reflect that trend. Tobey Sommer: Thank you. And in your executive search business, can you just talk about how AI is driving efficiencies and whether that is changing completion times or changing the margin structure of this business? Thank you. Gary D. Burnison: It is. it is impacting the total firm and it is certainly has it has an impact on how we are completing searches But the thing that we are very, very careful about there is the data that we have. We have significant proprietary data, you know, comp data, on 30 million people around the world, 30 thousand companies. We have done 113 million executive assessments We have upwards of 15 thousand success profiles. We have pretty sensitive information on not just what people have done but who they are. And so with respect to AI, particularly as it relates to the search group, We have been we have been very, very careful. About how we use that. And we are gonna continue to be you know, very cautious about that. Because of the nature of our data. So certainly, it is it has had an impact. I think it is gonna continue to have an impact absolutely. And Thank you. Robert Rozek: Tyler, this is Bob. Maybe a little bit more granular. I do not think what is happening is clients are expecting more from us in terms of candidate slates and we are able to deliver more of it, but it has not materially impacted the timeline of a search it is pretty consistent with what we have been seeing all along. And it you know, a lot of that is dependent on you know, the client scheduling, making decisions, and so on. So while we are meeting their demands on additional information request, the timeline has not changed. Gary D. Burnison: And, you know, Bob, that is a you know, it is an interesting point because what we are seeing from clients and, you know, is and the candidates is that everybody seems to have a perfect resume. And so-- You know, what the our firm has been built on IP and data. And it is not what somebody has done at the levels that we operate. it is who you are. And so the IP and the data that I that I was talking about are absolutely fundamental to how we are doing our search work as well as our you know, talent and organizational development activities. So you know, it is actually because of AI, it is actually increasing the demand for what we have given our you know, the proprietary nature of the database. And ultimately, it is about you know, who somebody is. You know, you that is that is just the truth. Operator: Our next question will come from the line of Trevor Romeo with William Blair. Please go ahead. Trevor Romeo: This is Melissa on for Trevor Romeo. Thank you guys so much for taking the questions. I guess I just have a couple on AMS to start. Congratulations closing that 1 too. How can we think about the cadence of synergy realization? Like, I guess, how much of the $40 million do we think we can be achieved immediately after close versus how much is back-end loaded? Gary D. Burnison: Well, what we said, when we announced the investment was that we would get to $140 million of run rate EBITDA within 1 year. Within a year of the date of the announcement. The date of close actually is what we said. And so I look at that 40 million and first of all, when you look at our track record, which is critically important here, We have an enormous track record gearing the top line of a company that we make an investment in. That is-- that is demonstrated. it is proven. And we also have a track record of tapping the economies of scale. That come with platforms such as Korn Ferry. And so I am absolutely 200% confident that we are going to achieve that level of incremental EBITDA and more Because I think that the revenue opportunity here and the growth opportunity for us is enormous. In terms of the exact timing, what we have said, as I indicated, is that incremental 40 you would see, you know, by a year from closing, which would have been last week, we are going to achieve that much faster than that. Gregg. Trevor Romeo: And then maybe just to follow-up on that, I guess, how can we think about the role that seasonality plays for AMS I know early careers and campus recruiting might have a school year angle. Just wondering if there is anything else. Gary D. Burnison: Yeah. It does. And they also they also-- it is going to follow the typical you know, kind of calendarization of holidays. And so that is yeah. You are absolutely correct. Generally speaking. And Bob, I do not know if you wanna provide any more precision around that. Robert Rozek: Yeah. Melissa, what I would do is I would just follow the traditional Korn Ferry seasonality Their business is pretty similar to ours. Where we always have our low watermark in Q3. You get Thanksgiving in The US and then the year end holidays. You know, we give our people a week off. Clients give their folks 1 week or 2 weeks off. So it is just not as many hours in that quarter. So you will see that the same sort of pattern if you will, that you experienced with Korn Ferry? Trevor Romeo: Got it. that is what we figured. Thank you guys so much. Operator: Our next question will come from the line of George Tong with Goldman Sachs. Please go ahead. George Tong: Hi, thanks. Good morning. You saw a 12% new business growth in the quarter. Can you unpack that a little bit and talk about how much of that growth came from RPO or more lumpy wins versus recurring revenue wins? Gary D. Burnison: Well, I would say the RPO is actually recurring wins. When you when you look at the at the new business, clearly, over the last several months, given what is happened in The Middle East, and the demographic factors that we have talked about on previous calls. Search and workforce solutions have been absolutely, you know, they are the stronger performers. And what is been really nice to see and supported our thesis when we made this decision is all the investments that we have made in workforce solutions. Whether that is interim or RPO. You know, that is that is really paying dividends And in this quarter, the RPO new wins were something like $160 million and 50% of those were from new logos. So you are going to see you are definitely going to see lumpiness around the for example, the outsourcing wins But that is 1 of the reasons why we entered into this into this investment with AMS. Because what you have there is, you know, you have recurring loyal client relationships of scale. And, you know, their client relationships, just take their top 10 the average tenure of those client relationships is 14 years. So, you know, 2 thirds of their business is in the RPO area. And, you know, I look at that as incredibly sticky and recurring. And when you look at the combined backlog, now, you know, this firm has absolutely made an enormous transformation over the last decade, and even 2 decades. Where now you are looking at a firm that looks completely different. Than the Korn Ferry where I started. And today, we have got a backlog of you know, 3 and a 3.5 you know, billion dollars now with AMS. And so, yeah, the workforce solutions is a integral part. And we have certainly seen a lift in new business including like I said, including the interim area. Which has had a significant lift. And I think that is all that above market growth is has been driven by the We Are Korn Ferry strategy and look at our you know, the cross referrals this quarter, were almost 30%. Which is, you know, which is really, really good to see. Robert Rozek: And Gary, do you maybe just because I think that the backlog commentary is really important for folks to understand. So if you look at our backlog, George, we were at the end of the quarter, about $1.9 billion. A percent of that or roughly 60% comes out within the next year. And then after that, you probably have another year and a half for the remainder. What AMS brings is not only a very large backlog, it is also given the strength and tenure of the customer relationships that Carrie talked about they are about 40% within the first year 60% comes out over the next 4 years. So it gives us much more durability and visibility and resilience going forward. George Tong: Got it. that is helpful. And then you are expecting AMS EBITDA to go from $100 million to $140 million within 1 year. Can you break out how much of the increase is going to come from revenue versus cost synergies. Gary D. Burnison: Well, our focus is absolutely on revenue. And we have already, you know, we have hit the ground running. We have had big teams together now over the last week since we have closed and there is obviously a little bit of pre integration planning where we have mapped top 100 customers, put teams against them. there is actually meetings happening this week with clients. I mean, we are absolutely all over that. it is certainly gonna change the nature of our marquee and diamond portfolio. That undoubtedly will go up As you know, it is it is incredibly complementary given AMS' industry and geographic footprint. With Korn Ferry. And so I look at not only the RPO solution, but I look at contingent workforce solutions. And early careers and technology consulting and integration as well as reskilling. I look at all 5 solutions if you will. Very, very positively. And the contingent workforce solutions, I think could be something that is definitely multi-hundred-million and could be multi-billion dollars given the amount of money the company spend on the temporary side. And the offering is really cool where, you know, we will now go in and we can consolidate vendors and save a company you know, 600, 700, 800, 900 basis points on their spend. I mean, it is material savings. And the contingent workforce solutions, you know, we are going to take that given the relationships we have around the world, and it is the same with early careers. With the early careers and the campus hiring that they do and just the marquee logos. They are client logos are so impressive. And, you know, like I said, I mean, everybody's got a perfect resume and understanding who somebody is. Is incredibly important to that hiring And then on the technology consulting side, they bring skills that we need. Particularly around integrating TalentSuite with CRM and HR platform. So you know, I look at all of those and say, wow, over the next 3 to 5 years, you are going to see incredible lift, I believe. Given this iconic brand and bringing our organization together. So we are absolutely off and running. On the revenue side. And on the economies of scale side, we have a track record. And we have a global platform that is highly scalable. And so, you know, we definitely are going to look at the economies of scale and whether that is in vendor spend, we are looking at that very, very closely. And I would just go back to our track record and say, we do everything we say we are going to do and more. Will we hit that 40 million? We will absolutely hit that. Will we hit it before 1 year? We absolutely will. Very helpful. George Tong: Thank you. Operator: Our next question will come from the line of Mark Marcon with Baird. Please go ahead. Mark Marcon: Hey, good afternoon and thanks for taking my question. 1, Gary, just there is been a lot of mixed news with regards to the economy. You obviously had really good results during this last quarter. Just wondering like how much of your performance would you attribute to this kind of the general macro versus, what you guys are specifically doing and what is your sense of how the macro has evolved over the last you know, 3, 4 months and what the near term outlook is? Gary D. Burnison: Well, I think the question of raising rates I mean, it is that is a real issue. And, you know, growth is very, very hard to come by. For most, you know, for most companies. If they are not building data centers or in the AI area. So I think it has been a challenging environment, and The Middle East has not made that any easier. And you see the impact on our on our EMEA results for sure. So has it has it worsened over the last 3 or 4 months? I would say no. But again, we have got the big question of, you know, of increasing rates. And more conflict in The Middle East that does not seem to end. I guess on the other side, Mark, what I would point out is just the tremendous you know, demographic opportunities because there is you know, a supply demand imbalance and you know this better than anybody. I mean, The US economy is only projected to produce like 5 million or 6 million jobs over the next decade, you know, compared to 25 million over the previous decade. So baby boomers are retiring, you know, it is and, you know, the labor force just is not gonna grow. The question then is, you know, how do you really find that talent that is not going to not just have a good company, but a great company. And I think, you know, my earlier comments about AI are absolutely right. I mean, everybody does have a perfect resume and I think our IP and our skill sets and our success profiles actually play an enormous role. With that kind of with that kind of backdrop. that is terrific. Mark Marcon: And then with regards to AI and IP, how would you characterize the difference between the development of AI and making it easier to find people relative to what happened with LinkedIn when that first came along. And how that ended up impacting your discussion with your clients and how it ended up impacting the discussion around pricing? Gary D. Burnison: Yeah. With LinkedIn, you know, it was around finding people. And that was and that was the big you know, question. And I think even back then, I said, you know, it is it is not a question of finding somebody. it is, you know, it is a question of finding out who they are. And I think with the AI, it is even more pronounced because what I am seeing, what I am hearing from clients is just everybody's perfect. And everybody has this stellar background and so I actually think it is it is way different from the LinkedIn days. And if you look at our you know, look at our pricing overall on the entire platform, it is gone up. it is increased over time. And I think you could make the argument that the same thing is could happen here because this 1 this 1 is it is not because it is recent. I just think this is way more profound than the LinkedIn days, you know, 15, 20 years ago. Mark Marcon: Right. And then last 1 for me. Just with regards to AMS, I mean, your RPO group has competed against Alexander Mann/ AMS for, you know, more than a decade now. How are the groups getting along together and what was AMS's trajectory on a month by month basis kind of going into the close of this? Gary D. Burnison: it is the same as what we had forecast So, you know, their CAGR over the last several years has looked you know, similar to ours. And if you go back further than that, the trend would be remarkably identical you know, with even before COVID and you have got the great resignation Everything kind of trended the same way. And going into the close, you know, when we announced it, we said, you know, excluding credit at the time, it was about $650 million a year. In annualized revenue. And going into the close and what we forecasted for the first 2 months, is, you know, pro rata share of that. It really you know, has not changed. And so, you know, we are looking at this. What we are gonna do now the go to market side, we are all over. As I talked about to George, we are absolutely all over that. So we are integrating right off the bat, say I hate the word integrating but synchronizing the go to market activity. So that is absolutely that is absolutely happening. it is gonna take us about 8 months or so to get everybody on the same platform and we are targeting our fiscal year ends April 30 We are targeting a May 1, 2027, date where we would get everybody onto a common platform that would be you know, SAP and the like and the common CRM all of that. We are gonna do some things immediately so that our frontline consultants we have about 1.8 thousand 1.9 thousand of those. So they have visibility. Into the customer activity for our largest clients. So we are absolutely doing that off right off the bat. You know, AMS has a completely different industry. Coverage than Korn Ferry. They are very, very heavy into financial services. it is about almost 50% of their overall portfolio. So I look from a, you know, industry and geographic, it is very, very complementary. At the end of the day, you know, we have we are looking at the business through a regional lens, so then through these 3 solutions. Our goal here is to have, you know, a unified RPO offering which we will have. But we are not gonna be on even on the same system for a number of months, a number of months. So the first few months here is really around learning about each other. And not saying, this is the way we have always done things. So this is the way we are gonna do it in the future. it is really around finding a third way. And that includes the IP. From both organizations. And that IP is obviously very, very meaningful. In the RPO area. So, you know, our principle here is do no harm. Focus on the customer right off the bat. We look at the economies of scale here over, you know, the next several months. But it is around, you know, it is around culture. I mean, people ignore when you do something like this, you know, people ignore culture you know, culture is the way an organization gets things done and by definition that is going to have to change. And that is 1 of the exciting things you know, about being in business. it is it is not stagnated. We constantly changes. So we have to we have to continue to evolve our culture collectively together. Terrific. Thanks so much, Gary. Operator: Our final question will come from the line of Brian Camden with UBS. Please go ahead. Josh Chan: Good morning. This is Brian on for Josh. For my first question, are there any key metrics you are paying attention to and reviewing the progress of integration? And any milestones you are looking to reach the next couple of quarters? Gary D. Burnison: Well, look, you know, 2 quarters is a pretty that is a pretty short amount of time. We want to look at whether we are expanding client relationships. You know, that is every organization whether it is a family, church, every organization has to grow. And so, we look at this and say, wow. 2 iconic brands, complimentary, geographic fit, industry fit, marquee logos. And so for us, what we tend to look at is, you know, how do our enterprise accounts do our marquee and diamond clients and what is happening with the cross referrals. And you have seen that now over time, it is gone up into the right. Pretty consistently. We would look to that you know. it is it is all about deepening relationships and innovation, you know, bringing new offerings to market. So all of those things we would certainly look at. But, you know, the first principle is do no harm. And make sure you understand and you understand each other before we, you know, find a 3rd way. Robert Rozek: And Gary, would just add to that. If you think if you are trying to think over the next 2 months, remember what Gary said, we are not going to be integrated from a platform perspective until May 1st. So that, you know, just that in and of itself we should frame it up for you saying over the next couple of quarters, you will see some progress, but it will be more heavily weighted towards after the integration and that is primarily on the cost side. As Carrie indicated on the top line side, we are starting that right now. Josh Chan: that is helpful. Thank you. And then my second question, do you expect AMS to have any direct or indirect impact on your other existing businesses outside of RPO? Thank you. Gary D. Burnison: Well, we do. We think that there is, you know, enormous opportunity to continue to deepen relationships and that is reflected in the cross referrals. So after this investment, we are gonna have something like 2,000 consultants that are for originating business. And so for the AMS, colleagues, that have come in to Legacy Korn Ferry, they have the opportunity to be able to deepen those relationships with other solutions that they did not have. And the same holds true for Korn Ferry. For legacy Korn Ferry and the 1.8 thousand of 1.85 thousand front frontline consultants that we have had. We have where, you know, they we have new capabilities to be able to offer to our existing customer base. And we have already put in cross referral incentives. And we are doing it as we speak, literally as we speak. For our new AMS colleagues, where they are going to be rewarded for opening the door and introducing you know, other solutions. So yeah, you are going to, you know, at the end of the day here after the transaction, you are gonna have a couple thousand frontline consultants. And, you know, we are looking at that productivity and, you know, we see that productivity as being about $2 million per consultant and that has obviously, that has room for significant expansion. Given the complementary nature of the solutions that we have here. Robert Rozek: Hey, Gary, the only other thing I would add to that is you think about our go to market activities and go to market mindset, it is driven through the marquee and diamond accounts and it is all about deepening our client relationships and, you know, demonstrated by our referral rates going from 18% you know, back when we started measuring up to almost 30% today. The only thing I would add for AMS they operate very similar to us. And if you go back to 2020 and you look at their growth, Gary indicated, it was kind of the same as ours, their CAGR is 10%-11%. Over 50% of that came from expanding their existing client relationships. So those go to market activities that are important to us are also obviously very important to them. And very consistent with what we have done over time. Thank you both and good luck in Q2. Operator: And it appears there are no further questions, Mr. Burnison. Gary D. Burnison: Okay. Regina, thank you for hosting this. And, I thank everybody for joining. And we are very, very excited. About what we can do now. With, I think, the dominant firm in talent and organizational consulting. So thank you all and we will talk to you soon. Bye. Operator: Ladies and gentlemen, this conference call will be available for replay for 1 week starting today, running through the end of the day on September 16, 2026 ending at midnight. You may access the echo service by dialing 800-770-2030 and entering the access code 267-2007 followed by the pound key. Additionally, the replay will be available for playback at the company's website www.kornferry.com, in the Investor Relations section. This concludes today's call. Thank you all for joining. You may now disconnect. Before you buy stock in Korn Ferry, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Korn Ferry wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $414,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,459!* Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 9, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Korn Ferry (KFY) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Fee Revenue: Grew 7% year-over-year to $756 million, marking the sixth consecutive quarter of growth. Adjusted EBITDA: Increased $8 million or 7% year-over-year to $128 million. Adjusted EBITDA Margin: Flat year-over-year at 17%. Adjusted Diluted EPS: Grew $0.12 or 9% year-over-year to $1.43. Americas Fee Revenue: Grew 9% year-over-year to $442 million, led by growth in Search and Workforce Solutions. EMEA Fee Revenue: Grew 4% year-over-year to $228 million, with broad-based strength across all solution groups. APAC Fee Revenue: Inflected to growth, reaching $87 million, up 1% year-over-year, led by Search. Estimated Remaining Fees Under Existing Contracts: Grew 14% year-over-year to $1.92 billion. Internal Business Referral Rate: Increased to 29.4% of consolidated fee revenue, up about 300 basis points year-over-year. Consolidated New Business: Grew 12% year-over-year. Dividends Paid: $30 million during the quarter. Capital Expenditures: $15 million invested during the quarter. Second Quarter FY '27 Fee Revenue Guidance: Expected to range from $860 million to $878 million, including two months of AMS contribution. Second Quarter FY '27 Adjusted EBITDA Margin Guidance: Expected to range from 16.8% to 17.2%. Second Quarter FY '27 Adjusted Diluted EPS Guidance: Expected to range from $1.30 to $1.40 per share. Warning! GuruFocus has detected 7 Warning Sign with KFY. Is KFY fairly valued? Test your thesis with our free DCF calculator. Release Date: September 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Korn Ferry (NYSE:KFY) delivered its sixth consecutive quarter of top-line growth, with fee revenue up 7% year-over-year to $756 million and growth across all regions and industry groups. The completion of the AMS acquisition significantly expands Korn Ferry (NYSE:KFY)'s portfolio, creating a global leader in talent and organizational consulting with a combined backlog of $3.5 billion and a more durable, recurring revenue stream. New business growth was robust at 12% year-over-year, with strong performance in Search and Workforce Solutions, including RPO new wins of approximately $160 million, half of which came from new logos. Internal business referral rates increased to 29.4% of consolidated fee revenue, up 300 basis points year-over-year, demonstrating the success of the 'One Korn Ferry' cross-selling strategy. Management expressed high confidence in achieving the $40 million incremental EBITDA from the AMS acquisition within a year, citing a strong track record of revenue synergies and economies of scale. The company's proprietary data and IP, including assessments on 113 million executives, are becoming more valuable as AI makes resumes look 'perfect,' increasing demand for Korn Ferry (NYSE:KFY)'s services to identify the right talent. The macroeconomic environment remains challenging, with rising interest rates and geopolitical conflicts, particularly in the Middle East, creating uncertainty and impacting results in the EMEA region. APAC region growth was only 1% year-over-year, as the region continues to be impacted by socioeconomic changes, especially the significant falloff in China since the pandemic. The integration of AMS is a complex process, with full platform integration not expected until May 1, 2027, which could delay the realization of cost synergies and create operational risks. Adjusted EBITDA margin remained flat year-over-year at 17%, indicating that while revenue is growing, profitability is not expanding at the same pace. The company's guidance for the second quarter of fiscal 2027 includes a lower adjusted diluted EPS range ($1.30-$1.40) compared to the first quarter's $1.43, partly due to incremental amortization and interest expenses from the AMS acquisition. While the AMS acquisition adds scale, it shifts the company's growth mix to be more inorganic (approximately 50-50), which could present integration challenges and dilute the quality of organic growth. Q: How should we think about growth rates in each of the new reporting segments (Americas, EMEA, APAC) going forward?A: Gary Burnison (CEO) stated that he looks at the firm's overall historical growth rate of roughly 10%-12%, which was previously 60% organic and 40% inorganic, but is now closer to 50-50 following the AMS acquisition. He noted that while there will be regional differences, he sees no reason the historical growth rate won't continue. He highlighted that EMEA has been the best-performing region recently, APAC has been impacted by socioeconomic changes in China, and the Americas have been steady. In the latest quarter, Workforce Solutions and Search both saw outstanding growth rates of 10%-11%. Q: Can you unpack the 12% new business growth and discuss how much came from RPO or lumpy wins versus recurring revenue wins?A: Gary Burnison (CEO) explained that RPO wins are essentially recurring, with new RPO wins in the quarter reaching approximately $160 million, 50% of which came from new logos. He emphasized that the AMS acquisition was driven by the desire for recurring, loyal client relationships at scale, noting that AMS's top 10 clients have an average tenure of 14 years. Robert Rozek (CFO) added that the combined backlog is now $3.5 billion, with Korn Ferry's legacy backlog of $1.9 billion expected to be recognized over the next 2.5 years, while AMS's backlog provides even more durability, with 40% recognized in the first year and 60% over the following four years. Q: How do we think about the cadence of realizing the $40 million in incremental EBITDA synergies from the AMS acquisition?A: Gary Burnison (CEO) reaffirmed the target of reaching $140 million in run-rate EBITDA within a year of the close, expressing 200% confidence in achieving the incremental $40 million and more. He cited Korn Ferry's proven track record of growing the top line of acquired companies and tapping into economies of scale. He stated they will achieve the target much faster than the one-year timeline. Q: How much of the $40 million increase in AMS EBITDA will come from revenue versus cost synergies?A: Gary Burnison (CEO) stated that the focus is absolutely on revenue, with integration teams already mapping top 100 customers and holding client meetings. He highlighted the complementary nature of AMS's offerings, including contingent workforce solutions, early careers, and technology consulting, which he believes represent multi-hundred-million to multibillion-dollar opportunities. He also noted they will pursue economies of scale in vendor spend, leveraging their track record of delivering on commitments. Q: How is AI driving efficiencies in the executive search business, and is it changing completion times or the margin structure?A: Gary Burnison (CEO) acknowledged AI's impact on the firm but emphasized caution due to the proprietary nature of their data, which includes comp data on 30 million people and 113 million executive assessments. He noted that AI is increasing demand for their services because "everybody has a perfect resume," making their proprietary IP and data on "who somebody is" more critical than ever. Robert Rozek (CFO) added that while clients expect more candidate slates, AI has not materially impacted search timelines, which remain dependent on client scheduling and decision-making. Q: How much of the strong quarterly performance is attributable to the macro environment versus company-specific actions, and how has the macro evolved recently?A: Gary Burnison (CEO) noted that the environment remains challenging due to rising interest rates and Middle East conflicts, which impacted EMEA results. However, he pointed to significant demographic tailwinds, citing projections that the U.S. economy will produce only 5-6 million jobs over the next decade versus 25 million in the previous decade, creating a supply-demand imbalance for talent. He believes this backdrop plays to Korn Ferry's strengths in IP, skill sets, and success profiles. Q: How does the development of AI compare to the emergence of LinkedIn, and how is it impacting pricing discussions with clients?A: Gary Burnison (CEO) distinguished AI from LinkedIn, noting that while LinkedIn was about finding people, AI has made it even more pronounced that "everybody is perfect" on paper, making it harder to discern who candidates truly are. He stated that Korn Ferry's overall platform pricing has increased over time and argued that AI's impact is far more profound than LinkedIn's was 15-20 years ago, suggesting continued pricing power. Q: How are the legacy Korn Ferry RPO group and AMS teams integrating, and what was AMS's trajectory going into the close?A: Gary Burnison (CEO) reported that AMS's trajectory matched forecasts, with a CAGR similar to Korn Ferry's over the last several years. He outlined an integration timeline of about eight months to get everyone on a common SAP and CRM platform by May 1, 2027. He emphasized the principle of "do no harm," focusing on customers immediately while learning about each other to find a "third way." He noted AMS's complementary industry coverage, with nearly 50% in financial services, and stressed the importance of culture in the integration process. Q: Are there key metrics you're watching to review integration progress, and what milestones should we look for in the next couple of quarters?A: Gary Burnison (CEO) stated that the focus is on expanding client relationships, particularly within Marquee and Diamond accounts, and monitoring cross-referral rates, which have consistently trended upward. Robert Rozek (CFO) added that since platform integration won't occur until May 1, 2027, cost synergies will be more heavily weighted toward the latter part of the year, while top-line initiatives are already underway. Q: Do you expect AMS to have a direct or indirect impact on your other existing businesses outside of RPO?A: Gary Burnison (CEO) confirmed significant opportunities to deepen relationships across all solutions. With approximately 2,000 consultants now responsible for originating business, both legacy Korn Ferry and AMS colleagues can cross-sell new capabilities to existing clients. He noted that cross-referral incentives are already in place, and he sees potential for consultant productivity, currently around $2 million per consultant, to expand significantly given the complementary nature of the combined solutions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Korn/Ferry (KFY) came out with quarterly earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.35 per share. This compares to earnings of $1.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.93%. A quarter ago, it was expected that this staffing company would post earnings of $1.37 per share when it actually produced earnings of $1.4, delivering a surprise of +2.19%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Korn/Ferry, which belongs to the Zacks Staffing Firms industry, posted revenues of $756.5 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 2.90%. This compares to year-ago revenues of $708.61 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Korn/Ferry shares have added about 24.3% since the beginning of the year versus the S&P 500's gain of 12.1%. While Korn/Ferry has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Korn/Ferry was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.48 on $750 million in revenues for the coming quarter and $6.04 on $3.03 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Staffing Firms is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Acuity (AYI), another stock in the broader Zacks Business Services sector, has yet to report results for the quarter ended August 2026. The results are expected to be released on October 1. This lighting maker is expected to post quarterly earnings of $5.67 per share in its upcoming report, which represents a year-over-year change of +9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Acuity's revenues are expected to be $1.26 billion, up 3.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Korn/Ferry International (KFY) : Free Stock Analysis Report Acuity, Inc. (AYI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a sixth consecutive quarter of top-line growth, driven by broad-based strength across all regions and industry groups despite macroeconomic headwinds. Completed the acquisition of AMS to create a global leader in talent and organizational consulting, significantly expanding capabilities in contingent workforce solutions and early career recruiting. Transitioned to a new geographic reporting structure (Americas, EMEA, APAC) to better align with 'We Are Korn Ferry' go-to-market initiatives and holistic client engagement. Leveraged proprietary data and IP—including 113 million executive assessments—to differentiate services in an AI-saturated market where resume quality has become commoditized. Increased internal business referral rates to 29.4% of consolidated fee revenue, demonstrating successful execution of cross-selling synergies across the firm's solution spectrum. Maintained steady profitability with adjusted EBITDA margins at 17%, supported by improved fee earner productivity across all geographic regions. Focused on a 'human beings, not human doings' philosophy, positioning technology as a catalyst for labor supply-demand balance rather than a replacement for human insight. Q2 FY27 guidance assumes two months of AMS contribution, projecting fee revenue between $860 million and $878 million with adjusted EBITDA margins around 17%. Targeting a $140 million run-rate EBITDA for the AMS business within one year of closing, driven by revenue synergies and tapping into Korn Ferry's global economies of scale. Planning a full platform synchronization by May 1, 2027, to move all colleagues onto common CRM and ERP systems while maintaining a 'do no harm' approach to client relationships. Anticipating long-term growth rates of 10% to 12%, with a shift toward a 50-50 balance between organic and inorganic growth following the AMS combination. Prioritizing investable cash for debt reduction associated with the AMS acquisition, while remaining opportunistic regarding share repurchases based on market valuation. Restructured financial reporting into three geographic segments to reflect how clients engage with the firm's integrated talent solutions. Identified geopolitical conflict in the Middle East as a specific headwind impacting EMEA results, despite broad-based growth in other solution groups. Noted that AMS brings a durable backlog where 60% of fees are recognized beyond the first year, enhancing the firm's long-term revenue visibility. Acknowledged risks related to rising interest rates and global economic uncertainty as potential limiters to broader corporate growth outside of AI and data center sectors. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that while AI helps meet client demands for more data, it has not materially shortened search timelines due to client-side scheduling and decision-making constraints. Stated that AI is actually increasing demand for Korn Ferry's proprietary data because 'perfect resumes' generated by AI make human assessment and IP more critical. Management expressed high confidence in achieving the $40 million incremental EBITDA target faster than the one-year post-close goal. Confirmed that cross-referral incentives for the 2,000 combined frontline consultants were implemented immediately upon closing to drive top-line growth. Management expects to maintain historical growth rates of 10-12% despite regional volatility, such as the socioeconomic impacts currently affecting the APAC region. Highlighted that the new structure facilitates a 'holistic face-off' with clients rather than isolated, solution-by-solution sales. AMS client relationships average 14 years of tenure among the top 10 accounts, providing significant 'stickiness' and recurring revenue potential. The combined firm now holds a total backlog of approximately $3.5 billion, with AMS contributing a longer-dated revenue tail compared to legacy search business.

Highlights Korn Ferry reports Q1 FY'27 fee revenue of $756.5 million, an increase of 7% year-over-year at both actual and constant currency. Estimated remaining fees under existing contracts at the end of the first quarter were $1.9 billion, up 14% year-over-year. Net income attributable to Korn Ferry was $69.0 million, an increase of 4% year-over-year, with a margin of 9.1%. Adjusted EBITDA was $128.2 million, an increase of 7% year-over-year, with a margin of 17%. Diluted and adjusted diluted earnings per share were $1.32 and $1.43 in Q1 FY'27, up 5% and 9% year-over-year, respectively. LOS ANGELES, September 09, 2026--(BUSINESS WIRE)--Korn Ferry (NYSE: KFY), a global consulting firm, today announced first quarter fee revenue of $756.5 million. In addition, first quarter diluted earnings per share was $1.32 and adjusted diluted earnings per share was $1.43. "I am very pleased with our quarterly performance. This marks our sixth consecutive quarter of top-line growth, demonstrating the momentum and durability of our business, as well as the sustaining value we are creating for our clients," said Gary D. Burnison, CEO, Korn Ferry. "With AMS now part of Korn Ferry, we have brought together two iconic brands to create a global leader in talent and organizational consulting. AMS is a world-class firm that complements and meaningfully expands our Workforce Solutions and propels our We Are Korn Ferry strategy—to be the world’s conductor of talent and organizational orchestration. "AMS brings profound operational capability, delivering technology-enabled talent solutions at scale, supported by long-term contracted client relationships. And at the heart of this combination is a belief that defines Korn Ferry: people are the catalyst for organizational success. I could not be more excited about our future." Selected Financial Results The Company reported fee revenue in Q1 FY'27 of $756.5 million, an increase of 7% year-over-year at both actual and constant currency. Fee revenue grew in all Regions year-over-year, led by double digit growth in Search and Workforce Solutions. Net income attributable to Korn Ferry was $69.0 million with a margin of 9.1% in Q1 FY'27, compared to net income attributable to Korn Ferry of $66.6 million with a margin of 9.4% in Q1 FY'26. Adjusted EBITDA was $128.2 million in Q1 FY'27 compared to $120.4 million in Q1 FY'26. Adjusted EBITDA margin in the quarter was 17.0%, flat year-over-year. Net income attributable to Korn Ferry and Adjusted EBITDA increased primarily due to an increase in fee revenue, partially offset by increases in compensation and benefits expenses and general and administrative expenses. Results by Region Selected Americas Data Fee revenue was $442.1 million in Q1 FY'27 compared to $404.1 million in Q1 FY'26, an increase of $38.0 million or 9% year-over-year at both actual and constant currency. The fee revenue increase was primarily driven by increases of 14% in both Search and Workforce Solutions. Adjusted EBITDA was $116.4 million in Q1 FY'27 compared to $100.7 million in the year-ago quarter. Adjusted EBITDA margin in the quarter increased year-over-year by 140bps to 26.3%. Adjusted EBITDA increased primarily due to an increase in fee revenue, partially offset by increases in compensation and benefits expenses and cost of services. Selected EMEA Data Fee revenue was $227.7 million in Q1 FY'27 compared to $219.0 million in Q1 FY'26, an increase of $8.7 million or 4% year-over-year at both actual and constant currency. Fee revenue increased in all Solution groups, led by Workforce Solutions and Talent & Organizational Solutions up 8% and 4%, respectively. Adjusted EBITDA was $37.3 million in Q1 FY'27, compared to $35.7 million in the year-ago quarter. Adjusted EBITDA increased primarily due to an increase in fee revenue, partially offset by increases in compensation and benefits expenses and cost of services. Selected APAC Data Fee revenue was $86.7 million in Q1 FY'27 compared to $85.5 million in Q1 FY'26, an increase of $1.2 million or 1% (up 2% at constant currency). Fee revenue increased primarily driven by a 7% increase in Search, offset by a decline in the other Solution Groups. Adjusted EBITDA was $19.2 million in Q1 FY'27 compared to $19.8 million in the year-ago quarter. Outlook Assuming no further changes in worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates, and including the addition of AMS for September and October, on a consolidated basis: Q2 FY’27 fee revenue is expected to be in the range of $860 million and $878 million; Q2 FY'27 adjusted EBITDA margin is expected to range from 16.8% to 17.2%; and Q2 FY’27 adjusted diluted earnings per share is expected to be in the range from $1.30 to $1.40. Adjusted diluted earnings per share includes the net after tax impact of two months of incremental intangible asset amortization, incremental net interest expense and incremental shares issued in connection with the acquisition of AMS which closed on September 1, 2026. Consolidated adjusted EBITDA margin and consolidated adjusted diluted earnings per share are non-GAAP financial measures. The Company is not providing an outlook for consolidated net income attributable to Korn Ferry margin or consolidated diluted earnings per share, the most directly comparable GAAP measures, or a quantitative reconciliation of those GAAP measures to the corresponding non-GAAP measures. The information necessary to present those GAAP measures on a forward-looking basis is not accessible without unreasonable efforts, because the Company is not able to estimate with reasonable certainty the integration and acquisition costs it will incur in connection with the AMS acquisition during the second quarter of fiscal 2027. Earnings Conference Call Webcast The earnings conference call will be held today at 12:00 PM (EDT) and hosted by CEO Gary Burnison, CFO Robert Rozek, SVP Business Development & Analytics Gregg Kvochak and VP Investor Relations Tiffany Louder. The conference call will be webcast and available online at ir.kornferry.com. We will also post to the investor relations section of our website earnings slides, which will accompany our webcast, and other important information, and encourage you to review the information that we make available on our website. About Korn Ferry Korn Ferry is a global consulting firm that powers performance. We unlock the potential in your people and unleash transformation across your business—synchronizing strategy, operations, and talent to accelerate performance, fuel growth, and inspire a legacy of change. That’s why the world’s most forward-thinking companies across every major industry turn to us—for a shared commitment to lasting impact and the bold ambition to Be More Than. Forward-Looking Statements Statements in this press release and our conference call that relate to our outlook, projections, goals, strategies, future plans and expectations, including statements relating to expected labor market conditions, expected demand for and relevance of our products and services, expected results of our business diversification strategy, expected benefits and synergies from the AMS acquisition, impact of global events on our business, and other statements of future events or conditions are forward-looking statements that involve a number of risks and uncertainties. Words such as "believes", "expects", "anticipates", "goals", "estimates", "guidance", "may", "should", "could", "will" or "likely", and variations of such words and similar expressions are intended to identify such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Such statements are based on current expectations; actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties that are beyond the control of Korn Ferry. The potential risks and uncertainties include those relating to global and local political and or economic developments in or affecting countries where we have operations, such as inflation, trade wars, interest rates, labor market conditions, global slowdowns, or recessions, competition, geopolitical tensions, including the recent Middle East conflict, shifts in global trade patterns, changes in demand for our services as a result of automation, dependence on and costs of attracting and retaining qualified and experienced consultants, impact of inflationary pressures on our profitability, our ability to maintain relationships with customers and suppliers and retaining key employees, maintaining our brand name and professional reputation, our ability to successfully integrate acquired businesses, including the operations and employees of AMS, our ability to recognize the anticipate benefits of the acquisition of AMS which may be affected by, among other things, competition, our ability to grow and manage growth profitably, our ability to maintain relationships with customers and suppliers and retain key employees, costs related to the AMS acquisition, potential legal liability and regulatory developments, portability of client relationships, consolidation of or within the industries we serve, changes and developments in government laws and regulations, evolving investor and customer expectations with regard to corporate responsibility matters, currency fluctuations in our international operations, risks related to growth, alignment of our cost structure, including as a result of recent workforce, real estate, and other restructuring initiatives, restrictions imposed by off-limits agreements, reliance on information processing systems, cyber security vulnerabilities or events, changes to data security, data privacy, and data protection laws, dependence on third parties for the execution of critical functions, limited protection of our intellectual property, our ability to enhance, develop and respond to new technology, including artificial intelligence, our ability to successfully recover from a disaster or other business continuity problems, employment liability risk, an impairment in the carrying value of goodwill and other intangible assets, treaties, or regulations on our business and our Company, deferred tax assets that we may not be able to use, our ability to develop new products and services, changes in our accounting estimates and assumptions, the utilization and billing rates of our consultants, seasonality, the use of social media platforms, the ability to effect acquisitions, resulting organizational changes, our indebtedness, and those relating to the ultimate magnitude and duration of any pandemic or outbreaks. For a detailed description of risks and uncertainties that could cause differences from our expectations, please refer to Korn Ferry’s periodic filings with the Securities and Exchange Commission. Korn Ferry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Use of Non-GAAP Financial Measures This press release contains financial information calculated other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). In particular, it includes: Adjusted net income attributable to Korn Ferry, adjusted to exclude accelerated depreciation on our digital technology platform and integration/acquisition costs, net of income tax effect; Adjusted basic and diluted earnings per share, adjusted to exclude cost associated with accelerated depreciation on our digital technology platform and integration/acquisition costs, net of income tax effect; Constant currency (calculated using a quarterly average) percentages that represent the percentage change that would have resulted had exchange rates in the prior period been the same as those in effect in the current period; and Consolidated Adjusted EBITDA, which is earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs when applicable, and Consolidated Adjusted EBITDA margin. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Management believes the presentation of non-GAAP financial measures in this press release provides meaningful supplemental information regarding Korn Ferry’s performance by excluding certain charges that may not be indicative of Korn Ferry’s ongoing operating results. These non-GAAP financial measures are performance measures and are not indicative of the liquidity of Korn Ferry. These charges, which are described in the footnotes in the attached reconciliations, represent 1) accelerated depreciation associated with the decision to sunset our digital technology platform and 2) costs associated with acquisitions, such as legal and professional fees, retention awards and on-going integration expenses. The use of non-GAAP financial measures facilitates comparisons to Korn Ferry’s historical performance. Korn Ferry includes non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its evaluation of Korn Ferry’s ongoing operations and financial and operational decision-making. Adjusted net income attributable to Korn Ferry, adjusted basic and diluted earnings per share and Consolidated Adjusted EBITDA, exclude certain charges that management does not consider on-going in nature and allows management and investors to make more meaningful period-to-period comparisons of the Company’s operating results. Management further believes that Consolidated Adjusted EBITDA is useful to investors because it is frequently used by investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes and capitalized asset values, all of which can vary substantially from company to company. In the case of constant currency percentages, management believes the presentation of such information provides useful supplemental information regarding Korn Ferry's performance as excluding the impact of exchange rate changes on Korn Ferry's financial performance allows investors to make more meaningful period-to-period comparisons of the Company’s operating results, to better identify operating trends that may otherwise be masked or distorted by exchange rate changes and to perform related trend analysis, and provides a higher degree of transparency of information used by management in its evaluation of Korn Ferry's ongoing operations and financial and operational decision-making. View source version on businesswire.com: https://www.businesswire.com/news/home/20260901479582/en/ Contacts Investor Relations: Tiffany Louder, (214) 310-8407Media: Dan Gugler, (310) 226-2645

Organizational consulting firm Korn Ferry (NYSE:KFY) announced better-than-expected revenue in Q2 CY2026, with sales up 6.9% year on year to $764.6 million. On top of that, next quarter’s revenue guidance ($869 million at the midpoint) was surprisingly good and 15.9% above what analysts were expecting. Its non-GAAP profit of $1.43 per share was 5% above analysts’ consensus estimates. Is now the time to buy Korn Ferry? Find out in our full research report. Revenue: $764.6 million vs analyst estimates of $747.1 million (6.9% year-on-year growth, 2.3% beat) Adjusted EPS: $1.43 vs analyst estimates of $1.36 (5% beat) Adjusted EBITDA: $128.2 million vs analyst estimates of $125.6 million (16.8% margin, 2.1% beat) Revenue Guidance for Q3 CY2026 is $869 million at the midpoint, above analyst estimates of $749.6 million Adjusted EPS guidance for Q3 CY2026 is $1.35 at the midpoint, below analyst estimates of $1.48 Operating Margin: 12.2%, in line with the same quarter last year Market Capitalization: $4.17 billion With clients including 97% of the S&P 100 and operations in 103 offices across 51 countries, Korn Ferry (NYSE:KFY) is a global consulting firm that helps organizations design optimal structures, recruit talent, develop leaders, and create effective compensation strategies. Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $2.99 billion in revenue over the past 12 months, Korn Ferry is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base. As you can see below, Korn Ferry’s sales grew at a solid 7.7% compounded annual growth rate over the last five years. This is an encouraging starting point for our analysis because it shows Korn Ferry’s demand was higher than many business services companies. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Korn Ferry’s recent performance shows its demand has slowed as its annualized revenue growth of 3.8% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. This quarter, Korn Ferry reported year-on-year revenue growth of 6.9%, and its $764.6 million of revenue exceeded Wall Street’s estimates by 2.3%. Company management is currently guiding for a 19.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 2.9% over the next 12 months, similar to its two-year rate. This projection doesn’t excite us and indicates its newer products and services will not catalyze better top-line performance yet. At least the company is tracking well in other measures of financial health. ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE. Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits. Korn Ferry has managed its cost base well over the last five years. It demonstrated solid profitability for a business services business, producing an average adjusted operating margin of 13.3%. Analyzing the trend in its profitability, Korn Ferry’s adjusted operating margin decreased by 5.7 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Korn Ferry generated an adjusted operating margin profit margin of 12.2%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable. Korn Ferry’s unimpressive 5.9% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. Although it wasn’t great, Korn Ferry’s two-year annual EPS growth of 9.9% topped its 3.8% two-year revenue growth. We can take a deeper look into Korn Ferry’s earnings to better understand the drivers of its performance. A two-year view shows that Korn Ferry has repurchased its stock, shrinking its share count by 2.7%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. In Q2, Korn Ferry reported adjusted EPS of $1.43, up from $1.31 in the same quarter last year. This print beat analysts’ estimates by 5%. Over the next 12 months, Wall Street expects Korn Ferry’s full-year EPS to grow 16.2% from $5.44 to $6.32. We were impressed by Korn Ferry’s optimistic revenue guidance for next quarter, which blew past analysts’ expectations. We were also happy its revenue outperformed Wall Street’s estimates. On the other hand, its EPS guidance for next quarter missed. Overall, this print had some key positives. The stock traded up 2.2% to $83.82 immediately following the results. Indeed, Korn Ferry had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

Interested in Korn/Ferry International? Here are five stocks we like better. Strong first-quarter results: Korn Ferry’s fee revenue rose 7% year over year to $756 million, while adjusted EBITDA increased 7% to $128 million and adjusted EPS climbed 9% to $1.43. Growth occurred across all regions, extending the company’s expansion streak to six quarters. AMS combination expands scale and backlog: The completed AMS transaction creates a firm with nearly 17,000 employees, approximately $3.5 billion in backlog and broader technology-enabled workforce capabilities. Management expects AMS’ annualized EBITDA to increase from $100 million to $140 million, potentially ahead of schedule. Positive outlook with integration and debt priorities: Korn Ferry forecasts second-quarter fee revenue of $860 million to $878 million and adjusted EPS of $1.30 to $1.40, including two months of AMS results. The company plans to prioritize customer-focused integration and debt reduction while remaining cautious about AI’s impact on sensitive search and talent data. MarketBeat Week in Review – 6/26 - 6/30 Korn/Ferry International (NYSE:KFY) reported first-quarter fiscal 2027 fee revenue growth across all regions, extending its streak to six consecutive quarters of top-line expansion, while outlining plans to expand its talent and organizational consulting platform following the completion of its combination with AMS. Chief Executive Officer Gary Burnison called the quarter’s performance “absolutely outstanding,” citing growth across regions and the company’s continued focus on its “We Are Korn Ferry” strategy. He said the completed AMS transaction creates a larger global talent and organizational consulting firm with nearly 17,000 colleagues across more than 130 offices. → 3 Under-the-Radar Defense Stocks With Record Backlogs Korn Ferry: An Undervalued Play on the State of the Workforce “Today, I think in terms of opportunities measured in the billions,” Burnison said, contrasting the company’s current ambitions with opportunities he had previously described in the hundreds of millions of dollars. Consolidated fee revenue increased 7% year over year to $756 million. Adjusted EBITDA rose $8 million, or 7%, to $128 million, while adjusted EBITDA margin remained flat from a year earlier at 17%. Adjusted diluted earnings per share increased 9% year over year, or $0.12, to $1.43. → Ride-Share Reckoning: Tesla Drives Into Uber's Lane MarketBeat Week in Review – 3/6 - 3/10 The company said estimated remaining fees under existing contracts increased 14% year over year to $1.92 billion. Korn Ferry expects about $1.1 billion, or 56%, of that amount to be recognized in the next four quarters, with $835 million expected beyond the next year. Americas fee revenue increased 9% year over year to $442 million, led by Search and Workforce Solutions. EMEA fee revenue rose 4% to $228 million, with growth across all solution groups. APAC fee revenue increased 1% to $87 million, led by Search. Chief Financial Officer Bob Rozek said consolidated new business grew 12% year over year, with fee revenue growth in all regions and industry groups. The company also reported that annualized new business per average fee earner increased year over year in every region. → High Gas Prices Aren't Budging—Here Are 3 Stocks That Benefit Korn Ferry’s internal business referral rate reached 29.4% of consolidated fee revenue, up about 300 basis points from a year earlier. Marquee and Diamond accounts represented about 40% of consolidated fee revenue. The company is now reporting results through three geographic segments: the Americas, EMEA and APAC. Rozek said the change aligns reporting with Korn Ferry’s go-to-market approach and the way clients engage with the business. Within each region, Korn Ferry is presenting three solution groupings: Search, which combines executive and professional search; Talent and Organizational Solutions, comprising consulting and digital; and Workforce Solutions, which includes recruitment process outsourcing, or RPO, and interim offerings. Burnison said he evaluates the company primarily on its overall growth trajectory and then by geography. He said Korn Ferry historically produced growth rates in the range of 10% to 12%, with roughly 60% of growth previously organic and 40% inorganic. Following the AMS combination, he said that mix is now closer to 50% organic and 50% inorganic. Burnison said AMS adds operational capabilities in technology-enabled talent solutions, long-term contracted client relationships, contingent workforce solutions, early-career and campus recruiting, technology consulting and reskilling. AMS’ top 10 client relationships have an average tenure of 14 years, he said, and approximately two-thirds of its business is in RPO. The combined company now has backlog of approximately $3.5 billion, according to Burnison. Rozek said Korn Ferry’s standalone backlog at the end of the quarter was about $1.9 billion, with roughly 60% expected to convert to revenue within a year. He said AMS adds a large backlog with about 40% expected within the first year and 60% spread over the next four years. Korn Ferry has said it expects AMS EBITDA to increase from $100 million to $140 million on a run-rate basis within one year of closing. Burnison said the company expects to achieve the $40 million increase faster than that timeline, driven by revenue opportunities as well as platform economies of scale. Management said it has begun aligning go-to-market efforts, mapping the combined companies’ top 100 customers and organizing teams around those accounts. However, the companies are not expected to be on common SAP, CRM and related platforms until May 1, 2027, which coincides with Korn Ferry’s fiscal-year calendar. Burnison said the initial integration priority is to “do no harm” and focus on customers, culture and understanding how the two organizations operate before establishing a combined approach. He said AMS’ industry mix is complementary to Korn Ferry’s, including a substantial presence in financial services. Burnison said artificial intelligence is affecting the company broadly, including its search operations, but Korn Ferry is being cautious because of the sensitive nature of its proprietary data. He cited the company’s compensation data covering 30 million people and 30,000 companies, along with 113 million executive assessments and approximately 15,000 success profiles. Rozek said clients are seeking more extensive candidate slates and information, which Korn Ferry can provide, but AI has not materially changed the time required to complete searches. He said search timelines remain influenced by client scheduling and decision-making. For the second quarter of fiscal 2027, Korn Ferry expects fee revenue of $860 million to $878 million, including two months of AMS results for September and October. The company projected adjusted EBITDA margin of 16.8% to 17.2% and adjusted diluted earnings per share of $1.30 to $1.40. Rozek said the earnings outlook includes the net after-tax effects of incremental intangible asset amortization, interest expense and additional shares associated with the AMS acquisition. The company paid $30 million in dividends and invested $15 million in capital expenditures during the quarter. Going forward, management said it expects to favor using investable cash to reduce debt related to the AMS acquisition, while continuing to monitor the attractiveness of share repurchases. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Korn/Ferry International Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

LOS ANGELES, September 08, 2026--(BUSINESS WIRE)--Korn Ferry (NYSE:KFY), a global consulting firm, today announced its Board of Directors has declared a cash dividend of $0.55 per share that will be payable on October 15, 2026 to shareholders of record on September 22, 2026. "We are pleased to pay another quarterly dividend. Our continued return of capital to shareholders reflects the confidence we have in Korn Ferry’s strategic direction and long-term outlook," said Gary D. Burnison, CEO, Korn Ferry. "We remain focused on executing with discipline, investing in the opportunities that will drive sustainable impact and creating lasting value for our shareholders." About Korn Ferry Korn Ferry is a global consulting firm that powers performance. We unlock the potential in your people and unleash transformation across your business—synchronizing strategy, operations, and talent to accelerate performance, fuel growth, and inspire a legacy of change. That’s why the world’s most forward-thinking companies across every major industry turn to us—for a shared commitment to lasting impact and the bold ambition to Be More Than. Forward-Looking Statements Statements in this Press Release that relate to Korn Ferry’s goals, strategies, future plans and expectations, and other statements of future events or conditions are forward-looking statements that involve a number of risks and uncertainties. Words such as "believes", "expects", "anticipates", "may", "should", "will", "likely", and "confidence", and variations of such words and similar expressions are intended to identify such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Such statements are based on current expectations; actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties that are beyond the control of Korn Ferry, including global and local political and economic developments, demand fluctuations, and those risks and uncertainties included in Korn Ferry’s periodic filings with the Securities and Exchange Commission, including the factors described in the sections entitled "Risk Factors" and "Forward-Looking Statements" of the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2026. Korn Ferry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by applicable law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260903003279/en/ Contacts Investor Relations: Tiffany Louder, (214) 310-8407Media: Dan Gugler, (310) 226-2645