Korn Ferry Reports 7% Revenue Growth to $756.5 Million in Q1 FY 2027

Korn Ferry reported a strong financial performance for the first quarter of fiscal year 2027, with fee revenue reaching $756.5 million, a 7% increase from $708.6 million in the same period last year. The company's net income attributable to Korn Ferry was $69.0 million, reflecting a 4% year-over-year growth, while diluted earnings per share rose to $1.32, up 5% from $1.26. The operating income for the quarter was $93.4 million, with an operating margin of 12.3%. The increase in revenue was attributed to growth across all geographic regions, particularly in the Search and Workforce Solutions segments, which experienced double-digit growth.

In comparison to the previous fiscal period, Korn Ferry's total revenue increased from $715.5 million to $764.6 million, marking a notable improvement. The company also reported an increase in adjusted EBITDA to $128.2 million, a 7% rise from $120.4 million, maintaining an adjusted EBITDA margin of 17%. The growth in revenue was driven by a 9% increase in the Americas region, which generated $442.1 million in fee revenue, while EMEA and APAC regions also contributed positively with increases of 4% and 1%, respectively.

Strategically, Korn Ferry has undergone a significant organizational realignment, transitioning from a solution-based presentation to a geographic reporting model, effective May 1, 2026. This change resulted in three reportable segments: Americas, EMEA, and APAC. The company believes this new structure better reflects how services are delivered and aligns with client purchasing behaviors. Additionally, Korn Ferry completed the acquisition of Auxey Holdco Limited for $1.2 billion on September 1, 2026, which is expected to enhance its capabilities in recruitment process outsourcing and consulting.

Operationally, Korn Ferry's employee headcount increased to 8,200 as of July 31, 2026, up from 7,900 a year earlier, reflecting the company's investment in talent to support its growth initiatives. The company also reported a slight increase in accounts receivable, which rose to $615.3 million, indicating a growing client base and demand for its services. However, cash and cash equivalents decreased to $800.9 million from $1.1 billion, primarily due to cash used in operating activities and the acquisition of Auxey.

Looking ahead, Korn Ferry remains optimistic about its growth trajectory, citing strong demand for its services and the anticipated benefits from the recent acquisition. The company plans to continue investing in its workforce and capabilities while maintaining a balanced approach to capital allocation, including regular dividends and potential share repurchases. However, management acknowledged potential risks related to macroeconomic conditions, including inflation and geopolitical tensions, which could impact future performance.