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

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

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)