Korn Ferry(US:KFY)2026-03-09 10:54Financial Performance - Korn Ferry reported Q3 FY'26 fee revenue of $717.4 million, a 7% increase year-over-year, with growth across all solutions[5]. - Net income attributable to Korn Ferry was $65.3 million, reflecting a 12% year-over-year increase, with a margin of 9.1%[5]. - Adjusted EBITDA for Q3 FY'26 was $123.1 million, an 8% increase year-over-year, with an adjusted EBITDA margin of 17.2%[5]. - The company reported a total revenue of $725.0 million for Q3 FY'26, compared to $676.5 million in Q3 FY'25[6]. - Korn Ferry's adjusted diluted earnings per share increased to $1.28, an 8% rise year-over-year[5]. - Korn Ferry reported total revenue of $725,042,000 for the three months ended January 31, 2026, representing a 7.2% increase compared to $676,538,000 for the same period in 2025[45]. - Fee revenue for the company reached $717,385,000 for the three months ended January 31, 2026, a 7.3% increase from $668,729,000 in the prior year[45]. - Adjusted net income attributable to Korn Ferry was $65,265,000 for the three months ended January 31, 2026, compared to $58,414,000 for the same period in 2025, reflecting an increase of 11.5%[43]. - Basic earnings per share attributable to Korn Ferry increased to $1.25 for the three months ended January 31, 2026, up from $1.12 in the same period of 2025, marking a 11.6% growth[43]. - The company's operating income for the three months ended January 31, 2026, was $91,017,000, a 16.3% increase from $78,232,000 in the prior year[43]. - Consolidated net income for the three months ended January 31, 2026, was $65,265, representing a margin of 9.1%, compared to $58,414 and a margin of 8.7% for the same period in 2025[57]. Revenue Breakdown - Estimated remaining fees under existing contracts at the end of Q3 FY'26 were $1.9 billion, up 11% year-over-year, driven by Digital (+16%), Consulting (+12%), and RPO (+10%)[5]. - Executive Search led the fee revenue growth at 13%, followed by Professional Search & Interim and Consulting, both at 5%[10]. - Digital fee revenue reached $94.0 million, a 4% increase year-over-year, primarily driven by an 8% increase in Subscription & License fee revenue[17]. - Fee revenue for Q3 FY'26 was $231.9 million, an increase of $27.3 million or 13% compared to Q3 FY'25[22]. - Total revenue for Q3 FY'26 reached $233.8 million, up from $206.6 million in Q3 FY'25[22]. - Fee revenue for Selected Professional Search & Interim was $137.0 million in Q3 FY'26, a 5% increase from $130.0 million in Q3 FY'25[25]. - RPO fee revenue for Q3 FY'26 was $87.5 million, an increase of 3% from $84.7 million in Q3 FY'25[29]. - Consulting fee revenue for the three months ended January 31, 2026, was $166,931, with an EBITDA margin of 17.0%, compared to $158,704 and 17.7% in 2025[57]. - Digital fee revenue for the three months ended January 31, 2026, was $94,014, with an EBITDA margin of 31.0%, compared to $90,823 and 31.3% in 2025[57]. - North America executive search revenue for the three months ended January 31, 2026, was $145,540, with an EBITDA margin of 29.0%, consistent with the previous year[57]. - Total executive search revenue for the three months ended January 31, 2026, was $231,949, with an EBITDA margin of 25.1%, compared to $204,571 and 25.0% in 2025[57]. Future Projections - Q4 FY'26 fee revenue is expected to be in the range of $730 million to $750 million[34]. - Q4 FY'26 diluted earnings per share is projected to range between $1.34 to $1.40[34]. - The company anticipates continued growth in adjusted net income and earnings per share for the upcoming quarters, driven by strategic initiatives and market expansion[49]. Assets and Liabilities - Korn Ferry's total assets increased to $3,949,608,000 as of January 31, 2026, compared to $3,861,224,000 as of April 30, 2025, indicating a growth of 2.3%[47]. - The company reported a total of 51,570,000 basic weighted-average common shares outstanding for the three months ended January 31, 2026[43]. - Korn Ferry's cash and cash equivalents decreased to $938,365,000 as of January 31, 2026, down from $1,006,964,000 as of April 30, 2025[47]. - The company’s total liabilities decreased to $1,941,643,000 as of January 31, 2026, from $1,989,085,000 as of April 30, 2025, reflecting a reduction of 2.4%[47]. Cost and Expenses - Integration/acquisition costs for the three months ended January 31, 2026, were $1.587 million, down from $2.127 million in the same period of 2025[49]. - Depreciation and amortization for the three months ended January 31, 2026, included $1.696 million of accelerated depreciation related to the Digital platform[53]. - Income tax provision for the three months ended January 31, 2026, was $26.683 million, representing an effective tax rate of 3.8%[49]. - Interest expense, net, for the three months ended January 31, 2026, was $5.663 million, slightly up from $5.461 million in the same period of 2025[49].