Korn Ferry Earnings Surge

Q4 Numbers Show Steady Profits and Strong Margins

Korn Ferry posted Q4 net income of about $73 million. GAAP diluted EPS was $1.39 and adjusted EPS was $1.40. Adjusted EBITDA — a measure of operating profit before certain costs — hit $129.5 million, good for a 17% margin. For the full fiscal year, adjusted EBITDA reached $497.8 million, also at a 17.1% margin, according to MarketScreener.

Full-year GAAP EPS came to $5.22, with adjusted EPS at $5.28. Total revenue for Q4 was $768.26 million, compared to $789.83 million a year ago. The year-over-year dip in total revenue — versus the growth in fee revenue — reflects the firm's shift toward consulting and advisory work over pass-through costs.

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$1.9 Billion Backlog Points to Long-Term Revenue Visibility

One of the clearest bright spots in the report was Korn Ferry's backlog — the value of work already under contract but not yet billed. That figure stood at roughly $1.9 billion, up 10% year over year. A growing backlog means the firm has more future revenue locked in than it did twelve months ago. That kind of visibility is rare for a firm that once relied almost entirely on one-time executive search fees.

The firm has spent years expanding beyond executive search into consulting, leadership development, and digital tools — including through acquisitions like Hay Group. That shift means more of its revenue now comes from longer contracts rather than single placements, according to GuruFocus.

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Korn Ferry Returns Cash to Shareholders With Buybacks and Dividends

During Q4, Korn Ferry bought back 1,240,458 shares for $78.8 million and paid $28.3 million in dividends. That totals more than $107 million returned to shareholders in a single quarter. Analysts viewed the buyback as a sign that management believes the stock is undervalued, even as they offered cautious guidance for the next quarter.

Q1 Guidance Comes in Below Expectations, Raising Caution

For Q1 of fiscal year 2027, Korn Ferry projected fee revenue between $725 million and $745 million, according to GuruFocus. That midpoint of $735 million sits below what analysts had expected — closer to $750–$760 million. The gap is not large, but it was enough to frame the report as a "beat and guide lower" situation, where strong past results are offset by a softer near-term outlook.

Analysts described the tone as "cautiously optimistic." The firm's management pointed to "evolving demand" in the sector as a reason for the conservative forecast. Some observers see this as smart risk management. Others see it as a sign that corporate hiring budgets are tightening — a potential early signal for the broader labor market heading into late 2026.

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