Korn Ferry

Korn Ferry reported fiscal second-quarter revenues of $764.6 million, up 6.9% year on year and 2.3% above analysts' expectations, scoring the highest guidance raise among its professional staffing and HR solutions peers. Across the 8 professional staffing and HR solutions stocks tracked, group revenues beat consensus estimates by 2.3% and next-quarter revenue guidance came in 3.9% above expectations, though share prices in the group are down 6.3% on average since the latest earnings results. ManpowerGroup posted the strongest quarter, with revenues of $4.86 billion, up 7.5% year on year and 2.9% above expectations, and its stock is up 46% since reporting, trading at $56.96. Barrett Business Services delivered the weakest performance against analyst estimates, with revenues of $319.3 million, up 3.8% year on year and in line with expectations, alongside a significant miss on EPS, sending its stock down 21.2% to $31.61. Alight reported revenues of $511 million, down 3.2% year on year but 2.8% above expectations, and logged the group's weakest guidance update, with its stock down 33.3% at $11.46, while First Advantage reported revenues of $448.8 million, up 14.9% year on year and 8.2% above expectations, delivering the biggest estimate beat, fastest revenue growth, and highest full-year guidance raise of the group. Korn Ferry's stock is down 12.3% since reporting and currently trades at $71.97.

Korn Ferry completed its £850 million acquisition of UK-based AMS from OMERS Private Equity on September 1. The deal combines two well-reputed brands into a leading business within the global talent and organizational consulting space, giving Korn Ferry broader market reach and coverage spanning several new industries. At closing, Korn Ferry paid approximately £473 million and $326 million in cash, covering consideration to the sellers, repayment of AMS indebtedness and other transaction obligations, and issued 3,118,628 Korn Ferry shares to the sellers, financed through a mix of existing cash, share issuance and borrowings. The acquisition extends Korn Ferry's growth trajectory, which included a sixth consecutive quarter of topline growth and 9% growth in adjusted diluted EPS of $1.43 in its recently announced first quarter results. The deal carries liquidity constraints from the significant cash outflow and dilution risk from the new shares issued, while retaining AMS's long-term client agreements depends on sustaining service standards through the transition.

Korn Ferry reported Q2 CY2026 revenue of $756.5 million, up 5.7% year on year and above analyst estimates of $747.1 million, with adjusted EPS of $1.43 beating the $1.36 consensus. The organizational consulting firm guided Q3 CY2026 revenue to $869 million at the midpoint, 15.9% above analyst estimates of $749.6 million, though its Q3 adjusted EPS guidance of $1.35 came in below the $1.48 consensus. Management attributed the sixth consecutive quarter of top-line growth to its "We Are Korn Ferry" strategy and the completed acquisition of AMS, a major recruitment process outsourcing provider that immediately expands Korn Ferry's contingent workforce and early career solutions. CEO Gary Burnison said the AMS combination adds a high proportion of recurring multi-year contracts, with client relationships averaging 14 years, and the company is targeting $40 million of incremental EBITDA from AMS within the first year of the deal. CFO Robert Rozek said the company will monitor the pace of integration and ensure disciplined capital allocation, with full platform alignment targeted by May 2027, while management flagged ongoing macroeconomic uncertainty in EMEA and APAC.

Korn/Ferry reported quarterly earnings of $1.43 per share, surpassing the Zacks Consensus Estimate of $1.35 and up from $1.31 a year ago, marking a 5.93% surprise. Revenues for the quarter ended July 2026 reached $756.5 million, beating estimates by 2.90% and rising from $708.61 million in the prior year. The company has exceeded consensus EPS and revenue estimates in each of the last four quarters. Management's commentary on the earnings call will likely influence near-term stock movement, with shares up 24.3% year-to-date versus the S&P 500's 12.1% gain. Looking ahead, the consensus EPS estimate for the coming quarter is $1.48 on $750 million in revenues, and for the current fiscal year, $6.04 on $3.03 billion in revenues. Korn/Ferry currently holds a Zacks Rank #3 (Hold), indicating expectations of in-line performance with the market.

Korn Ferry shares climbed 5.1% after the company reported its fifth consecutive quarter of revenue growth, driven by broad-based momentum across workforce transformation, digital, and consulting services. The firm posted full-year revenue of US$2,938.64 million and net income of US$277.43 million for the period ending June 2026. Analyst commentary highlighted an improving earnings outlook and valuation, reinforcing the investment narrative that Korn Ferry can convert transformation engagements into more predictable earnings. The company projects revenue of $3.2 billion and earnings of $357.5 million by 2029, implying 3.1% annual revenue growth and an $80 million earnings increase from current levels. Risks remain around slower conversion of large engagements and tight client budgets on pricing.

Korn Ferry has been named a Global Leader in Everest Group's Recruitment Process Outsourcing Services PEAK Matrix Assessment 2026, with recognition across the U.S., UK, and India assessments. The report highlights the firm's client strategy, global delivery capabilities, and technology investments, including its AI-powered Korn Ferry Nimble Recruit platform. Jeanne MacDonald, CEO of Recruitment Process Outsourcing at Korn Ferry, said the recognition reflects the firm's ability to help clients connect recruiting with broader workforce strategy amid hiring volatility and AI-driven change. Everest Group's assessment analyzed over 50 service providers and approximately 7,000 multi-process RPO deals, categorizing providers as Leaders, Major Contenders, or Aspirants.

Zacks Equity Research identifies Korn Ferry, ManpowerGroup, and Kelly as staffing stocks poised for growth despite industry headwinds. The staffing industry is gradually recovering to pre-pandemic levels, driven by remote work adoption and technological advancements. Korn Ferry reported 5% year-over-year revenue growth in its fiscal fourth quarter, with net income up 13.9%, and holds $1.9 billion in remaining fees under contract. ManpowerGroup leverages AI to boost commercial scale, generating nearly $200 million in incremental revenues in France, and targets $200 million in permanent cost savings by 2028. Kelly expanded through a major managed service provider program with a North American oil and gas company and maintains a strong current ratio of 1.59 with no current debt. Over the past year, the Zacks Staffing Firms industry declined 5%, underperforming the S&P 500's 26.5% gain.

Baird raised its price objective on Korn Ferry to $85 from $84 while reiterating an Outperform rating. The adjustment follows the company's fourth-quarter results, during which CEO Gary Burnison announced that starting in the first quarter, Korn Ferry will report external operating segments by three geographic regions: the Americas, EMEA, and APAC. The company will also report across three solution categories: Search, Talent and Organizational Solutions, and Workforce Solutions. CFO Robert Rozek noted that estimated remaining fees under existing contracts reached nearly $1.9 billion at quarter-end, up 10% year-over-year, with every solution category posting growth.

Korn Ferry has agreed to acquire UK-headquartered AMS from OMERS Private Equity for approximately £850 million, or $1.1 billion. The deal combines Korn Ferry’s consulting and search expertise with AMS’s recruitment process outsourcing and talent solutions, creating a firm of over 16,000 professionals operating across 120 countries. The purchase price includes about £659 million in cash, funded by $300 million of cash on hand and $581 million from a revolving credit facility, plus roughly £191 million in Korn Ferry stock. AMS currently generates annual fee revenue of around $650 million and $100 million in adjusted EBITDA, with Korn Ferry expecting the post-acquisition adjusted EBITDA contribution to reach roughly $140 million within the first year. The transaction is expected to close during Korn Ferry’s second fiscal quarter of 2027 and be immediately accretive to earnings per share in the first full year, excluding restructuring and transaction costs.

Korn/Ferry, a Los Angeles-based staffing company, currently pays a quarterly dividend of $0.55 per share, yielding 3.12%, which is above the staffing industry average of 1.79% and the S&P 500's 1.45%. The company's annualized dividend of $2.20 per share represents a 10.6% increase from last year, and over the past five years it has raised its dividend four times for an average annual increase of 40.80%. With a payout ratio of 37% and a Zacks Consensus Estimate for fiscal 2026 earnings of $5.75 per share, implying 8.90% year-over-year growth, the dividend appears well-supported. The stock carries a Zacks Rank of 2, or Buy.

Korn Ferry used its fourth-quarter earnings call to announce a strategic shift toward a regionally oriented operating model, moving external reporting to three geographic segments—the Americas, EMEA, and APAC—starting in the first quarter of fiscal 2027. President and CEO Gary Burnison said the firm is pivoting from a solution-weighted structure to a more integrated, client-centric approach under its 'We Are Korn Ferry' initiative, aiming to improve cross-selling and sustain growth amid uneven macro conditions. The company reported adjusted earnings per share of $1.40 on revenues of $759.8 million, beating consensus estimates, with Professional Search & Interim fee revenues up 14% to $149.1 million and Executive Search up 7% to $242.0 million. Management highlighted a 29.1% business referral rate and a 10% rise in estimated remaining fees under contract to $1.883 billion as evidence of cross-selling traction, while noting that recent Middle East conflict hurt new business trends outside the Americas. Korn Ferry guided first-quarter fiscal 2027 fee revenues to $725 million to $745 million and earnings per share to $1.32 to $1.38, and said it repurchased 1.24 million shares for $78.8 million in the quarter.

S&P Global declared a third-quarter 2026 cash dividend of $0.97 per share, payable September 10 to shareholders of record August 26, with an annualized rate of $3.88. Applied Industrial Technologies declared a quarterly cash dividend of $0.51 per share, payable August 31 to shareholders of record August 14. Korn Ferry declared a cash dividend of $0.55 per share, payable July 31 to shareholders of record July 6, and noted it repurchased 1.2 million shares during the quarter, bringing fiscal 2026 buybacks to 1.8 million shares. Rithm Capital declared a second-quarter 2026 common stock dividend of $0.25 per share, payable July 31 to shareholders of record July 2. Reaves Utility Income Fund announced a 5% increase in its annual distribution to $2.52, paid monthly at $0.21 per share, representing an annualized distribution rate of 6.12% based on a market price of $41.18 and net asset value of $41.86 as of June 17.

Korn/Ferry reported quarterly earnings of $1.40 per share, beating the Zacks Consensus Estimate of $1.37 per share. Revenue came in at $759.77 million, surpassing the consensus estimate by 2.74% and up from $712.05 million a year ago. The company has now beaten consensus EPS and revenue estimates in each of the last four quarters. Shares have gained about 2.7% year to date, underperforming the S&P 500's 9.2% gain. The current consensus EPS estimate for the coming quarter is $1.36 on $732.4 million in revenues.

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. CEO Gary Burnison said the decision reflects the strength and resilience of the business and a balanced approach to capital allocation. The company also repurchased 1.2 million shares during the quarter, bringing total buybacks for fiscal year 2026 to 1.8 million shares.