Korn Ferry Reports 4.8% Revenue Growth to $715.5 Million in Q1 FY 2026

Korn Ferry reported a solid financial performance for the first quarter of fiscal year 2026, ending July 31, 2025, with total revenue reaching $715.5 million, a 4.8% increase from $682.8 million in the same period last year. The company's fee revenue specifically rose to $708.6 million, up 5% year-over-year, driven by growth in its Executive Search and Professional Search & Interim segments. Net income attributable to Korn Ferry was $66.6 million, reflecting a 6% increase from $62.6 million in the prior year, with diluted earnings per share rising to $1.26 from $1.17.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. Executive Search fee revenue increased by 8% to $224.3 million, while Professional Search & Interim saw a 10% rise to $133.9 million. The increase in fee revenue was partially attributed to favorable foreign exchange rates, which positively impacted revenue by approximately $9.1 million. Korn Ferry's Adjusted EBITDA also improved, reaching $120.4 million, an 8% increase from $111.2 million, with an Adjusted EBITDA margin of 17.0%, up from 16.5%.

Strategically, Korn Ferry has expanded its capabilities through the acquisition of Trilogy International, which contributed to the growth in the Professional Search & Interim segment. The company continues to enhance its service offerings across five solution areas, including Consulting, Digital, Executive Search, Professional Search & Interim, and Recruitment Process Outsourcing (RPO). As of July 31, 2025, Korn Ferry's customer base included approximately 350 Marquee and Diamond accounts, which accounted for about 39% of consolidated fee revenue.

Operationally, Korn Ferry's employee headcount increased, particularly in the Executive Search EMEA segment, which reported a 10% rise in average consultant headcount. The company also noted a slight increase in days sales outstanding, which rose from 58 to 64 days. Despite the increase in revenue, Korn Ferry's cash and cash equivalents decreased to $684.9 million from $1.007 billion at the end of the previous quarter, primarily due to cash used in operating activities and dividend payments.

Looking ahead, Korn Ferry remains optimistic about its growth trajectory, supported by its diversified service offerings and strategic acquisitions. The company anticipates continued demand for its consulting and talent management services, although it acknowledges potential risks related to economic conditions and market fluctuations. Korn Ferry's management is committed to maintaining a balanced approach to capital allocation, focusing on growth initiatives while also returning value to shareholders through dividends and share repurchases.