Korn Ferry reported its fourth quarter and full year FY'26 financial results, with adjusted earnings per share and revenue both surpassing analyst expectations. The company posted an adjusted diluted EPS of $1.40, beating the consensus estimate of $1.38 by 1.45%. This represents a 6.06% increase compared to earnings of $1.32 per share in the same period last year. Quarterly sales reached $768.256 million, exceeding the analyst consensus estimate of $743.340 million by 3.35% and marking a 6.72% increase over sales of $719.900 million in the prior year.

Q4 FY'26 fee revenue reached $759.8 million, a year-over-year increase of 7% (up 5% at constant currency), while full year FY'26 fee revenue totaled $2,907.5 million, also up 7% year-over-year (up 5% at constant currency). "I am very pleased with our quarterly performance. This marks our fifth consecutive quarter of top-line growth, underscoring the strength of our strategy and the increasing relevance of our solutions – all amid an uneven economic environment," said Gary D. Burnison, CEO, Korn Ferry.

Selected Financial Highlights

The following table summarizes key financial metrics for Q4 and full year FY'26 versus FY'25:

During Q4 FY'26, the company repurchased 1,240,458 shares for $78.8 million and paid dividends of $28.3 million. The Board declared a quarterly cash dividend of $0.55 per share, payable July 31, 2026, to shareholders of record on July 6, 2026. The company ended the quarter with $1.10 billion in cash and cash equivalents and $398.6 million in long-term debt.

Q4 FY'26 Quarterly Performance

Q4 FY'26 fee revenue growth was led by Professional Search & Interim, which rose 14%, followed by Executive Search and Consulting, both up 7%, and RPO up 5%. Net income attributable to Korn Ferry increased to $73.1 million with a margin of 9.6%, up 60 basis points from Q4 FY'25. Adjusted EBITDA rose to $129.5 million from $121.1 million in the year-ago quarter, with the margin steady at 17.0%.

Results by Solution

The table below presents Q4 FY'26 and Q4 FY'25 segment-level performance:

Consulting: Fee revenue increased $12.5 million or 7% year-over-year (up 5% at constant currency). Adjusted EBITDA margin was 17.0%, essentially flat compared to the year-ago quarter.

Digital: Fee revenue decreased $2.3 million or 3% year-over-year (down 6% at constant currency). Adjusted EBITDA margin was 31.0%, relatively unchanged from the year-ago quarter.

Executive Search: Fee revenue increased $15.0 million or 7% year-over-year (up 5% at constant currency). Adjusted EBITDA margin improved to 26.4% from 23.9% in the year-ago quarter.

Professional Search & Interim: Fee revenue increased $18.4 million or 14% year-over-year (up 12% at constant currency). Adjusted EBITDA margin improved to 22.7% from 21.0%.

RPO: Fee revenue increased $4.3 million or 5% year-over-year (up 3% at constant currency). Adjusted EBITDA margin was 15.8% compared to 15.5% in Q4 FY'25.

Strategic Updates and Outlook

Management announced a strategic shift to a regional reporting structure effective in the first quarter of fiscal 2027. External reporting segments will transition to the Americas, EMEA, and APAC. Solution-level detail will be provided in three categories: Search (Executive and Professional Search), Talent and Organizational Solutions (Digital and Consulting), and Workforce Solutions (RPO and Interim).

Outlook for Q1 FY'27

Assuming no material negative impact from the recent Middle East conflict and that other worldwide geopolitical conditions, economic conditions, financial markets, and foreign exchange rates remain steady, on a consolidated basis:

Korn Ferry announced its Board of Directors has declared a quarterly cash dividend of $0.55 per share, payable on July 31, 2026, to shareholders of record on July 6, 2026. The declaration reflects the company's commitment to returning capital to shareholders alongside its share repurchase program.

The global consulting firm repurchased 1.2 million shares during the quarter, bringing total share buybacks for FY26 to 1.8 million shares. This activity underscores a balanced approach to capital allocation and delivering long-term value, according to Gary D. Burnison, CEO of Korn Ferry.

Dividend and Repurchase Details

The following table outlines the key dates and figures for the capital allocation actions:

Korn Ferry operates as a global consulting firm, synchronizing strategy, operations, and talent to accelerate performance for clients across major industries.