Korn Ferry Extends Top-Line Growth Streak to Six Quarters
Fee revenue reached $756.5 million in the first quarter of fiscal 2027, and the firm expects $860 million to $878 million in the second quarter after adding AMS.
Korn Ferry (KFY), a global consulting firm, reported first-quarter fiscal 2027 fee revenue of $756.5 million, up 7% year-over-year at both actual and constant currency, extending a run of top-line growth to six consecutive quarters.
The sequential path was mixed. Fee revenue had risen from $717.4 million in the third quarter of fiscal 2026 to $759.8 million in the fourth quarter, then eased to $756.5 million in the latest period. Chief Executive Gary D. Burnison said the sixth straight quarter of growth showed “the momentum and durability of our business.”
Search and Workforce Solutions led the year-over-year increase. Consolidated Search fee revenue was $307.9 million, up 10.4%, and Workforce Solutions was $189.4 million, up 11.1%. Talent & Organizational Solutions was $259.2 million, unchanged from a year earlier. Fee revenue grew in all regions.
Americas was the largest region. Fee revenue there was $442.1 million, up 9% year-over-year at both actual and constant currency, with 14% increases in both Search and Workforce Solutions. Americas adjusted EBITDA was $116.4 million, and the margin rose 140 basis points to 26.3% from 24.9%.
EMEA fee revenue was $227.7 million, up 4% year-over-year at both actual and constant currency, led by Workforce Solutions and Talent & Organizational Solutions. EMEA adjusted EBITDA was $37.3 million, with a 16.4% margin.
APAC fee revenue was $86.7 million, up 1% (2% at constant currency), driven by a 7% increase in Search that was offset by declines in other solution groups. APAC adjusted EBITDA was $19.2 million, with a 22.2% margin.
Net income attributable to Korn Ferry was $69.0 million, up 4% year-over-year, with a margin of 9.1% versus 9.4% a year earlier. Adjusted EBITDA was $128.2 million, up 7%, with a 17.0% margin that was flat year-over-year. Diluted earnings were $1.32 a share, up 5%, and adjusted diluted earnings were $1.43 a share, up 9%. Net income and adjusted EBITDA increased primarily due to higher fee revenue, partially offset by increases in compensation and benefits and general and administrative expenses. Integration and acquisition costs were $7.6 million, versus $1.5 million a year earlier.
Estimated remaining fees under existing contracts were $1.9 billion, up 14% year-over-year. New business was $832.3 million. Fee-earner new-business productivity was $1,840 thousand. The ending number of fee earners was 1,811.
The firm closed the AMS acquisition on September 1, 2026. Burnison said AMS “complements and meaningfully expands our Workforce Solutions” and brings “technology-enabled talent solutions at scale, supported by long-term contracted client relationships.”
For the second quarter of fiscal 2027, assuming no further changes in worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates, and including AMS for September and October, Korn Ferry expects fee revenue of $860 million to $878 million, adjusted EBITDA margin of 16.8% to 17.2%, and adjusted diluted earnings of $1.30 to $1.40 a share. Adjusted diluted earnings include the net after-tax impact of two months of incremental intangible amortization, incremental net interest expense and incremental shares issued in connection with AMS. Korn Ferry is not providing an outlook for consolidated net income margin or GAAP diluted earnings per share because it is not able to estimate with reasonable certainty the integration and acquisition costs it will incur in connection with AMS during that quarter.