Consulting firm Korn Ferry Q2 adjusted profit beats estimates helped by growth in executive search segment

Korn Ferry

09/12/2025 11:56

Overview

Korn Ferry Q2 FY26 revenue beats analyst expectations, growing 7% yr/yr

Adjusted EPS for Q2 FY26 beats consensus, rising 10% yr/yr

Net income for Q2 FY26 rises 19% yr/yr to $72.4 mln

Outlook

Company expects Q3 FY26 fee revenue between $680 mln and $694 mln

Company projects Q3 FY26 diluted EPS between $1.15 and $1.21

Company anticipates Q3 FY26 adjusted diluted EPS between $1.19 and $1.25

Result Drivers

EXECUTIVE SEARCH GROWTH - Fee revenue in Executive Search grew 10% yr/yr, driven by more engagements and higher fees per engagement

PROFESSIONAL SEARCH & INTERIM GROWTH - Fee revenue in Professional Search & Interim increased 17% yr/yr, aided by the acquisition of Trilogy International

CONSULTING SEGMENT - Consulting fee revenue increased 4% yr/yr, driven by a 10% rise in average bill rates

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$729.80 mln
$705.97 mln (5 Analysts)
Q2 Adjusted EPS
Beat
$1.33
$1.31 (5 Analysts)
Q2 EPS
$1.36
Q2 Basic EPS
$1.38
Q2 Fee Revenue
$721.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the employment services peer group is "buy"

Wall Street's median 12-month price target for Korn Ferry is $81.00, about 24.7% above its December 8 closing price of $64.97

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBwrCMyza

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)