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Jan 31
Korn Ferry Q3 2026 Earnings Report
Korn Ferry reported strong growth in the third quarter of fiscal 2026, with fee revenue increasing 7% year-over-year.
Key Takeaways
Korn Ferry achieved record third-quarter fee revenue of $717.4 million, driven by growth across all business segments, particularly Executive Search. Net income and Adjusted EBITDA both saw double-digit and high single-digit growth respectively, while the company maintained stable margins despite increased compensation expenses.
Fee revenue grew 7% year-over-year to $717.4 million, with Executive Search leading at 13% growth.
Net income attributable to Korn Ferry rose 12% to $65.3 million, with a margin of 9.1%.
Estimated remaining fees under existing contracts reached $1.9 billion, an 11% increase year-over-year.
The Digital segment saw an 8% increase in Subscription & License fee revenue, despite a slight decline in total consultant headcount.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Korn Ferry expects continued growth in the fourth quarter of fiscal 2026, with fee revenue and earnings per share projected to increase sequentially.
Positive Outlook
- Q4 fee revenue expected between $730 million and $750 million.
- Q4 diluted earnings per share expected between $1.34 and $1.40.
- Strong backlog with $1.9 billion in estimated remaining fees.
- Growth momentum in Executive Search and Digital subscriptions.
- New logo client wins in North America RPO.
Challenges Ahead
- Potential material negative impact from Middle East conflict.
- Uncertainty in worldwide geopolitical conditions.
- Volatility in global financial markets.
- Fluctuations in foreign exchange rates.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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