Group 1 - Employers are planning for salary budget increases in 2026, with estimates around 3.5%, a slight decrease from 2025 [3][4] - There is a significant disparity in salary increases between high-wage and low-wage roles, with high-wage salaries rising over 30% since January 2023, while low-wage salaries increased by only 10% [4] - The impact of artificial intelligence (AI) on hiring and compensation strategies is mixed, with 84% of hiring managers indicating plans to offer higher salaries for in-demand skills related to AI, machine learning, and data science [5][6] Group 2 - A recent survey by Mercer indicates that U.S. organizations expect average merit-based salary increases of 3.2% and overall increases of 3.5% for 2026, with most companies planning to distribute these increases evenly [7] - There is a noted disconnect between employers' pay strategies and their broader priorities, such as talent development and market competitiveness, suggesting an opportunity for organizations to realign their budgets towards in-demand skills [7]

Core Insights - FTI Consulting has appointed Mitch Harris as a Senior Managing Director in the Healthcare Risk Management & Advisory practice, enhancing its expertise in addressing regulatory and operational challenges in the healthcare sector [1][3][4] Company Overview - FTI Consulting, Inc. is a leading global expert firm specializing in crisis and transformation, with over 8,100 employees across 32 countries as of September 30, 2025 [5] - The company generated $3.70 billion in revenues during the fiscal year 2024, indicating strong financial performance [5] Industry Context - The healthcare industry is facing rising costs, increased regulatory complexity, and intensified oversight, leading to operational and financial volatility [4] - There is a growing demand for expert support and advice in navigating these challenges, highlighting the importance of FTI Consulting's services [4]

Core Insights - Anthropic has partnered with Accenture to scale AI projects, creating the Accenture Anthropic Business Group to train around 30,000 professionals [2][3] - The collaboration aims to assist CIOs in implementing AI-powered software solutions for regulated industries, including financial services and healthcare [3][4] - Accenture is now one of Anthropic's three largest enterprise customers, leveraging Anthropic's Claude capabilities for productivity gains [4] Company Collaboration - The partnership will enable Accenture developers to utilize Claude Code, marking the largest deployment of Anthropic's AI models to date [2] - The initiative is designed to help clients transition from AI experimentation to practical implementation [3] Market Context - Approximately 80% of Anthropic's revenue is derived from business customers using AI for complex tasks such as coding and compliance [5] - The adoption of agentic AI varies significantly among enterprises, with those already invested in automation progressing faster than others [6]

Core Insights - Korn Ferry shares increased following the release of stronger quarterly profit and revenue, driven by broad-based growth across its businesses [1][2] Financial Performance - The company reported second-quarter adjusted earnings per share of $1.33, surpassing the analyst consensus estimate of $1.31 [2] - Quarterly sales reached $729.80 million, exceeding the expected $705.97 million [2] - Fee revenue for the second quarter was $721.7 million, reflecting a 7% increase year-over-year [3] - Executive Search revenue rose by 10%, while Professional Search & Interim revenue increased by 17% [3] - Adjusted EBITDA grew to $124.8 million, a 7% increase from the previous year, with a margin of 17.3% remaining stable [5] - The company ended the quarter with cash and equivalents totaling $761.579 million [5] - Estimated remaining fees under existing contracts were $1.842 billion, marking a 20% year-over-year increase [5] Strategic Positioning - Korn Ferry emphasizes the need for adaptable strategies in a rapidly changing economy, positioning itself as a partner to help organizations align strategy, operations, and talent [4] - The CEO highlighted the company's outstanding performance, noting the fourth consecutive quarter of accelerated growth, particularly from Marquee and Diamond accounts [4] Dividend Announcement - The company declared a cash dividend of 48 cents per share, payable on January 15, 2026, to shareholders of record on December 19, 2025 [6] Future Outlook - For the third quarter, Korn Ferry expects adjusted EPS between $1.19 and $1.25, aligning closely with the Street's estimate of $1.24 [7] - The projected GAAP EPS for the third quarter is between $1.15 and $1.21, which is below the Street's estimate of $1.26 [7] - Fee revenue for the third quarter is anticipated to be between $680 million and $694 million [7] - At the time of publication, Korn Ferry shares were up 3.52% at $67.26 [7]

Core Insights - Accenture has expanded its partnership with Anthropic, marking its second deal with a leading AI developer in eight days, aimed at accelerating AI adoption among clients [1] - The formation of the "Accenture Anthropic Business Group" will train approximately 30,000 employees in delivering Claude-powered solutions [2] - The collaboration will also provide access to Claude Code for tens of thousands of developers at Accenture, along with a new offering for CIOs to measure and scale AI solutions [2][3] Group 1 - The partnership with Anthropic is intended to enhance client choice, meet demand, and drive innovation in AI solutions [5] - Dario Amodei, CEO of Anthropic, stated that the rollout of Claude Code to Accenture employees represents the largest deployment in the company's history [3] - Accenture previously announced a similar partnership with OpenAI, providing its employees with ChatGPT Enterprise for various operational tasks [3][4] Group 2 - The professional services industry is notably impacted by AI-driven transformation, with firms striving to demonstrate effective AI deployment both internally and for clients [5] - Global consulting firms, including Deloitte, are also forming partnerships with AI developers, providing their extensive workforces with AI-powered solutions [6] - The top consulting firms maintain a range of partnerships with major AI companies like Microsoft, OpenAI, Nvidia, and Anthropic [7]

Core Insights - The Hackett Group, Inc. has reported that SG&A costs have reached their highest level in five years, with median SG&A cost as a percentage of revenue increasing from 13.7% to 14.3% [1] SG&A Cost Analysis - The increase in SG&A costs is primarily attributed to slowing revenue growth, indicating a potential challenge for companies in managing operational expenses [1] - The findings are based on an analysis of 1,000 large companies, providing a comprehensive view of the current SG&A landscape [1]

Group 1 - Accenture and Anthropic have expanded their partnership by creating a new business group [1] - Approximately 30,000 employees of Accenture will receive training on Anthropic's AI technologies [1]

Core Insights - FTI Consulting has appointed Rike Rabl as Chief Human Resources Officer, effective January 1, 2026, succeeding Holly Paul who held the position since 2014 [1][3]. Company Leadership Transition - Rike Rabl joined FTI Consulting in 2020 and will lead the global human capital strategy, focusing on talent acquisition, workforce planning, and total rewards [2][5]. - Holly Paul, the outgoing Chief Human Resources Officer, significantly transformed the HR function during her tenure, enhancing recruiting, talent development, and employee engagement initiatives [3][4]. - The transition aims to maintain the company's organic growth trajectory by competing effectively in the markets for clients and talent [4]. Rike Rabl's Background - Prior to her new role, Rabl served as Deputy Chief Human Resources Officer, overseeing global HR operations and strategy [5]. - Rabl has extensive experience in transformation, having led initiatives at Fannie Mae and spent nearly a decade at Boston Consulting Group [5]. Company Overview - FTI Consulting is a global expert firm with over 8,100 employees across 32 countries, generating $3.70 billion in revenues for fiscal year 2024 [7].

Core Insights - Korn Ferry reported second quarter fee revenue of $721.7 million, a 7% increase year-over-year, with diluted earnings per share at $1.36 and adjusted diluted earnings per share at $1.33 [1][3][6] Financial Performance - Fee revenue for Q2 FY'26 was $721.7 million, up from $674.4 million in Q2 FY'25, reflecting a 7% increase (6% at constant currency) [3][6] - Total revenue for the quarter was $729.8 million, compared to $682.0 million in the previous year, marking a 7% increase [3][6] - Net income attributable to Korn Ferry was $72.4 million, with a margin of 10.0%, up from $60.8 million and a margin of 9.0% in the prior year [3][6] - Adjusted EBITDA for Q2 FY'26 was $124.8 million, compared to $117.0 million in Q2 FY'25, with an adjusted EBITDA margin of 17.3% [3][7] Segment Performance - Consulting segment fee revenue was $172.8 million, a 4% increase from $166.8 million in Q2 FY'25, driven by a 10% increase in average bill rates [10][11] - Digital segment fee revenue decreased to $91.0 million from $92.9 million, a 2% decline [12][13] - Executive Search segment fee revenue increased to $226.0 million, up 10% from $206.0 million, attributed to growth in engagements billed and average fees [14][18] - Professional Search & Interim segment fee revenue rose to $141.1 million, a 17% increase from $121.1 million, primarily due to higher revenue from Interim services [19][21] - Recruitment Process Outsourcing (RPO) fee revenue increased to $90.8 million, up 4% from $87.6 million, driven by new business in North America [22][24] Outlook - For Q3 FY'26, Korn Ferry expects adjusted diluted earnings per share to be in the range of $1.19 to $1.25, with fee revenue projected between $680 million and $694 million [25][30]

Core Insights - CFOs are increasingly using terms like "uncertainty" and "unprecedented" to describe the current economic landscape, reflecting a sense of fatigue with ongoing unpredictability [1] - The focus for CFOs is on taking actionable steps to build resilience in the face of uncertainty, rather than succumbing to inaction [1][2] - There is a significant shift in resource allocation towards technology functions within companies, although uncertainty remains regarding AI's full impact on financial performance [3][4] Financial Strategies - Key questions for CFOs include improving liquidity, operational efficiency, and determining essential versus non-essential investments [2] - Despite uncertainty, it is crucial for companies to review long-standing strategies and seize competitive opportunities, particularly in AI investments [2] - The recommended focus for AI efforts is 80% on productivity for growth and 20% on productivity for efficiency, emphasizing better time utilization rather than headcount reduction [5] Future Outlook - McKinsey's research suggests that by 2030, profound changes in work processes will necessitate a reorganization of value creation and activities [4] - Managing uncertainty effectively involves planning for both positive and negative scenarios, highlighting the importance of a cross-functional approach within the C-suite [6] - The global economic outlook indicates that AI-driven investments are supporting better-than-expected growth, despite underlying demand remaining soft [9]