What if one of the more overlooked pressures on corporate America’s future leadership pipeline is not burnout, return-to-office conflict, or employee disengagement, but inherited wealth?That is one of the more consequential questions embedded in the Great Wealth Transfer, and one I explore in a new piece. As trillions of dollars move from older Americans to their heirs, fewer people may feel compelled to endure the long climb to senior leadership at large firms.This is not because the next generation will s ...

The Great Wealth Transfer is usually framed as a consumer, housing, or wealth management story. But it may also become a story about power inside corporate America. If financial security arrives before the corner office does, why would the most talented people keep climbing the corporate ladder?For decades, big companies could count on one thing. Enough ambitious people would tolerate the grind because the ladder promised money, status, and security. But as trillions move from older Americans to their heirs ...

Core Insights - The company attributes its record performance to the 'We Are Korn Ferry' strategy, which transitions from five siloed businesses to a unified provider of integrated talent solutions [1] - Performance is driven by a structural 'labor recession' characterized by declining birth rates and aging demographics, creating a permanent scarcity of high-skilled talent, which insulates the firm from traditional unemployment cycles [1] - Operational efficiency has significantly improved over three years, with revenue per headcount increasing by nearly 33% and margins expanding by over 300 basis points [1] Strategic Focus - The strategic focus is on deepening penetration within 4,500 core clients, who represent 90% of revenue but currently utilize only 1.5 to 2 solutions on average [1] - The launch of Talent Suite is likened to 'Moneyball for business,' utilizing proprietary data to help clients identify the '20% of people doing 80% of the work' as they aim to do more with less [1] - Cross-business referrals reached a near-high of 27% of total business, validating the integrated go-to-market approach across consulting, digital, and search solutions [1]

Core Insights - Korn Ferry (KFY) has set a fee revenue target for Q4 2026 between $730 million and $750 million, indicating a strong outlook for the upcoming quarter [2] - The company is focusing on expanding its Talent Suite and promoting cross-solution growth, which reflects its strategic direction towards a more integrated business model [2] Management Perspective - CEO Gary Burnison emphasized the firm's transition from "One Korn Ferry" to "We Korn Ferry," highlighting the ongoing evolution and outstanding performance during the quarter [2]

Financial Data and Key Metrics Changes - Consolidated fee revenue grew 7% to $717 million, marking the fifth consecutive quarter of accelerating year-over-year growth [11] - Adjusted EBITDA increased by $9 million or 7.5% to $123 million, with an adjusted EBITDA margin of 17.2%, up 10 basis points [11] - Adjusted diluted earnings per share rose by $0.09 or 8% to $1.28 [11] - Total company new business, excluding RPO, grew 11%, with consulting and digital reaching all-time quarterly highs [11] Business Line Data and Key Metrics Changes - The interim portion of the PS&I solution grew 4%, benefiting from new business referrals [14] - Subscription and licensed new business grew 30% year-over-year, accounting for 43% of Digital's total new business [15] - Average hourly bill rates for consulting and interim grew by 2% and 15% respectively, indicating high client value [15] Market Data and Key Metrics Changes - Fee revenue in the Americas increased by 6%, driven by growth in executive search and RPO [16] - EMEA fee revenue grew 13%, with double-digit growth in executive search, consulting, digital, and PS&I [16] - APAC fee revenue slightly declined by 2%, with growth in executive search offset by weakness in other solutions [16] Company Strategy and Development Direction - The company is transitioning from "One Korn Ferry" to "We Are Korn Ferry," focusing on client centricity and deepening relationships with existing clients [7] - The strategy emphasizes expanding solutions offered to the top 4,500 clients, which represent 90% of revenue, with significant room for growth [8] - The company aims to leverage its Talent Suite as a foundational tool for business transformation, viewing it as a comprehensive solution rather than just a digital product [9] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing labor supply imbalance and the critical role of technology and AI in addressing workforce challenges [5] - The company remains confident in its outlook, expecting fee revenue in Q4 FY 2026 to range from $730 million to $750 million [16] - Management noted that the current economic environment remains challenging, but the diversified business model has allowed for resilience [10] Other Important Information - The board approved a 15% increase in the quarterly cash dividend to $0.55 per share, marking the seventh increase in six years [13] - Estimated remaining fees under existing contracts at the end of the quarter were $1.85 billion, up 11% year-over-year [12] Q&A Session Summary Question: How do you see AI impacting Korn Ferry? - Management believes AI will drive efficiency and create more opportunities, particularly in high-end labor markets [20][22] Question: Can the company grow in an environment of higher unemployment? - Management indicated that the diversified business model allows for growth even in challenging labor market conditions [26][27] Question: Will Talent Suite deepen existing relationships or expand into new ones? - Management sees Talent Suite primarily as a tool to deepen existing client relationships, with significant opportunities for expansion [30] Question: What drove the recent strengths in consulting new business? - The focus on transformation and AI readiness among clients has driven demand for consulting services [60] Question: What is the outlook for technology spending? - Management anticipates a balanced approach to capital deployment, with a potential shift towards stock buybacks [39][40] Question: What are the demand trends in the interim business? - Management noted a slight uptick in demand and emphasized the importance of high-end talent solutions [44] Question: How long until meaningful changes in client behavior are expected? - Management suggested it may take around 90 days to assess the impact of recent geopolitical events on client behavior [80]

Financial Data and Key Metrics Changes - The consolidated fee revenue grew 7% to $717 million, marking the fifth consecutive quarter of accelerating year-over-year growth [11] - Adjusted EBITDA increased by $9 million or 7.5% to $123 million, with an adjusted EBITDA margin of 17.2%, up 10 basis points [11] - Adjusted diluted earnings per share rose by $0.09 or 8% to $1.28 [11] - Total company new business, excluding RPO, grew 11%, with consulting and digital reaching all-time quarterly highs [11] Business Line Data and Key Metrics Changes - The interim portion of the PS&I solution grew 4%, benefiting from new business referrals [14] - Subscription and licensed new business grew 30% year-over-year, accounting for 43% of Digital's total new business [15] - Average hourly bill rates for consulting and interim grew by 2% and 15% respectively, indicating high client value [15] Market Data and Key Metrics Changes - Fee revenue in the Americas increased by 6%, led by growth in executive search and RPO [16] - EMEA fee revenue grew 13%, with double-digit growth in executive search, consulting, digital, and PS&I [16] - APAC fee revenue declined slightly by 2%, with growth in executive search offset by weakness in other solutions [16] Company Strategy and Development Direction - The company is focused on deepening relationships with existing clients, aiming to increase the number of solutions provided to the top 4,500 clients that represent 90% of revenue [7][17] - The "We Are Korn Ferry" initiative aims to unify the company's approach and enhance client centricity [7] - The company is leveraging its Talent Suite to provide data-driven insights for talent management, positioning itself as a leader in the evolving labor market [9][36] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing labor supply imbalance and the critical role of technology and AI in addressing workforce challenges [5][6] - The company expects fee revenue in Q4 FY 2026 to range from $730 million to $750 million, with adjusted EBITDA margins between 17.1% and 17.3% [16] - Management expressed confidence in the company's ability to continue driving top-line growth despite challenging market conditions [10][14] Other Important Information - The board approved a 15% increase in the quarterly cash dividend to $0.55 per share, marking the seventh increase in six years [13] - Estimated remaining fees under existing contracts at the end of the quarter were $1.85 billion, up 11% year-over-year [11] Q&A Session Summary Question: How do you see AI impacting Korn Ferry? - Management believes AI will drive efficiency and create more opportunities, particularly for high-end labor talent [20][22] Question: Can the company grow in an environment of higher unemployment? - Management noted the diversified business model allows for growth even in challenging labor market conditions [26][27] Question: Will Talent Suite deepen existing relationships or expand into new ones? - Management indicated that Talent Suite is primarily aimed at deepening existing client relationships [30] Question: What are the demand trends in the interim business? - Management reported a slight uptick in demand and emphasized the importance of high-end talent solutions [42][44] Question: How is the company approaching technology spending? - Management indicated a balanced approach to capital deployment, with a focus on technology investments [39][40] Question: What is the outlook for margin expansion? - Management expects margins to remain in the 16%-18% range, influenced by M&A execution and interim market opportunities [61] Question: How long until client behavior changes due to current economic conditions? - Management suggested it may take about 90 days to assess the impact of recent geopolitical events on client behavior [80]

Financial Data and Key Metrics Changes - Consolidated fee revenue grew 7% to $717 million, marking the fifth consecutive quarter of accelerating year-over-year growth [12] - Adjusted EBITDA increased by $9 million or 7.5% to $123 million, with an adjusted EBITDA margin of 17.2%, up 10 basis points [12] - Adjusted diluted earnings per share rose by $0.09 or 8% to $1.28 [12] - Total company new business, excluding RPO, grew 11%, with consulting and digital reaching all-time quarterly highs [12] Business Line Data and Key Metrics Changes - The interim portion of the PS&I solution grew 4%, benefiting from new business referrals [14] - Subscription and licensed new business grew 30% year-over-year, accounting for 43% of Digital's total new business [15] - Average hourly bill rates for consulting and interim grew by 2% and 15% respectively, indicating high client value [15] Market Data and Key Metrics Changes - Fee revenue in the Americas increased by 6%, led by growth in executive search and RPO [16] - EMEA fee revenue grew 13%, with double-digit growth in executive search, consulting, digital, and PS&I [16] - APAC fee revenue declined slightly by 2%, with growth in executive search offset by weakness in other solutions [16] Company Strategy and Development Direction - The company is focused on deepening relationships with existing clients, aiming to increase penetration of solutions among the top 4,500 clients that represent 90% of revenue [8][17] - The "We Are Korn Ferry" initiative aims to unify the company's approach and enhance client-centricity [7][17] - The company is leveraging its Talent Suite to provide data-driven insights for talent management, positioning itself as a leader in the evolving labor market [10][35] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing labor supply imbalance and the critical role of technology and AI in addressing workforce challenges [5][6] - The company expects fee revenue in Q4 FY 2026 to range from $730 million to $750 million, with adjusted EBITDA margins between 17.1% and 17.3% [16] - Management expressed confidence in the company's ability to grow despite economic uncertainties, citing a diversified business model [25][26] Other Important Information - The board approved a 15% increase in the quarterly cash dividend to $0.55 per share, marking the seventh increase in six years [13] - The company returned approximately $113 million to shareholders through share repurchases and dividends [13] Q&A Session Summary Question: How do you see AI impacting Korn Ferry? - Management believes AI will drive efficiency and create more opportunities, particularly in high-end labor markets [20][21] Question: Can the company grow in an environment of higher unemployment? - Management noted the diversified business model allows for growth even in challenging labor market conditions [25][26] Question: Is Talent Suite more likely to deepen existing relationships or expand into new ones? - Management indicated that Talent Suite is primarily aimed at deepening existing client relationships [28] Question: What drove the recent strengths in consulting new business? - The focus on transformation and AI readiness among clients has driven demand for consulting services [56][57] Question: What is the outlook for technology spending? - Management anticipates a balanced approach to capital deployment, with a potential shift towards stock buybacks [37][39] Question: What are the demand trends in the interim business? - Management noted a slight uptick in demand and emphasized the importance of high-end talent solutions [40][41] Question: How are sales cycles and client spending behavior changing? - Management reported no significant changes in sales cycles or client spending behavior despite macroeconomic conditions [46][49]

FY'26 Q3 Earnings Presentation MARCH 9, 2026 | © 2025 Korn Ferry Safe Harbor Statement FORWARD-LOOKING STATEMENTS Statements in this presentation that relate to goals, strategies, future plans and expectations are based on Korn Ferry's current expectations. You are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected because of a number of risks and uncertainties. For a detailed description of many of those risks and u ...

Core Viewpoint - Korn Ferry (KFY) shares have experienced a mixed performance over the past year, with a loss of approximately 2% in value despite solid financial results [1] Financial Performance - The company has delivered solid financial results, indicating a strong operational performance [1] Market Exposure - Korn Ferry's exposure to the hiring market through its recruiting business line is a significant factor influencing its stock performance [1]

Market Overview - U.S. stocks traded lower, with the Dow Jones index falling more than 1% on Monday, down 1.30% to 46,883.33, NASDAQ down 1.02% to 22,159.20, and S&P 500 down 1.14% to 6,663.14 [1] - European shares also declined, with the eurozone's STOXX 600 down 1.2%, Spain's IBEX 35 Index down 1.2%, London's FTSE 100 down 0.8%, Germany's DAX down 1.1%, and France's CAC 40 down 1.6% [4] - Asian markets closed lower, with Japan's Nikkei 225 down 5.20%, Hong Kong's Hang Seng index down 1.35%, China's Shanghai Composite down 0.67%, and India's BSE Sensex down 1.71% [5] Sector Performance - Energy shares rose by 0.1% on Monday, while consumer discretionary stocks dipped by 2% [1] Company Earnings - Korn Ferry (NYSE:KFY) reported third-quarter earnings of $1.28 per share, beating the analyst consensus estimate of $1.24 per share, and quarterly sales of $725.042 million, surpassing the analyst consensus estimate of $695.118 million [2] Commodity Prices - Oil traded up 7.7% to $97.86, while gold traded down 0.8% at $5,119.00; silver traded up 1% to $85.165, and copper fell 0.4% to $5.7835 [3]