Korn Ferry

Korn Ferry reported Q4 fiscal 26 consolidated fee revenue of $760 million, up 7% year over year. Adjusted EBITDA was $130 million, up $8 million or 7%, with adjusted EBITDA margin at 17%; adjusted diluted EPS was $1.40, up $0.08 or 6%. For the full year, fee revenue was about $2.9 billion, up 7%; adjusted EBITDA was close to $500 million, up 7%; and adjusted EPS was $5.28, up 8%. Ending estimated remaining fees under existing contracts grew 10% year over year to almost $1.9 billion. For Q1 fiscal 27, the company guided fee revenue to $725 million-$745 million, adjusted EBITDA margin to around 17%, and adjusted diluted EPS to $1.32-$1.38.

Gary Burnison framed the quarter as proof that Korn Ferry’s strategy is working, saying it was the company’s 5th consecutive quarter of top-line growth. He emphasized a client-centric, integrated model under the “We Are Korn Ferry” banner, arguing the firm is moving from selling individual solutions to creating broader enterprise relationships. He also said the company is shifting its mindset and reporting structure toward regions because that better matches how clients buy and how work gets done today.

Robert Rozek highlighted strong operating momentum and diversification, pointing to 10% growth in ending estimated remaining fees, a 29.1% business referral rate, and 40% penetration in marquee and diamond accounts. He noted full-year fee revenue of about $2.9 billion, adjusted EBITDA of close to $500 million, and adjusted EPS of $5.28, along with Q4 adjusted EBITDA of $130 million and a 17% margin. On capital allocation, he said the company bought back 1.24 million shares for about $78 million in Q4 and returned $221 million to shareholders in fiscal 26 through buybacks and dividends, while also spending $85 million on CapEx for TalentSuite and productivity tools.

Analysts focused on executive search demand trends, whether Korn Ferry was gaining share at the top end of the market, and whether recent new-business moderation reflected a softer pipeline. Management said the firm has moved upmarket over time, with average fees up almost 10% over the last couple of years, and said trailing four-month trends still look strong. They also attributed weaker new business in some regions to the Middle East war, saying it has affected APAC and EMEA, while margin pressure in the quarter was mainly from higher bonus expense tied to stronger revenue.