Korn Ferry (NYSE: KFY) reported results for fiscal first quarter 2027 on September 9, 2026, posting adjusted earnings per share of $1.43, topping Wall Street estimates. Fee revenue rose 7% year-over-year to $756 million, marking the sixth consecutive quarter of growth.
Adjusted EBITDA came in at $128 million, up $8 million or 7% from a year earlier, with margin flat at 17.0%. New business surged 12% on both a reported and constant currency basis. The company’s estimated remaining fees under existing contracts reached $1.915 billion, up 14% year-over-year, with $1.08 billion expected to be recognized within the next 12 months.
On a segment basis, Search revenue grew 10% to $308 million, Workforce Solutions rose 11% to $189 million, while Talent & Organizational Solutions remained flat at $259 million.
Regional performance was mixed. The Americas accounted for 58% of consolidated fee revenue, growing 9% to $442 million, with new business surging 15.2% year-over-year. Adjusted EBITDA in the region reached $116 million on a 26.3% margin, up 140 basis points. EMEA contributed 30% of revenue, growing 4% to $228 million with an adjusted EBITDA margin of 16.4%. APAC, representing 12% of revenue, grew 1% to $87 million.
Korn Ferry completed its acquisition of Alexander Mann Solutions (AMS) on September 1, 2026. CEO Gary Burnison said the deal adds approximately $650 million in annual fee revenue and positioned the company to reach $140 million in run-rate EBITDA from AMS within one year, with at least $40 million in incremental EBITDA expected sooner. The firm plans to unify AMS onto common SAP and CRM platforms over an eight-month window beginning May 1, 2027.
Capital return continued, with the board approving a 15% increase in the quarterly dividend to $2.20 per share—marking the seventh dividend increase in six years. Total cash deployed during the quarter was $54 million, covering $30 million in dividends, $15 million in technology investments, and $9 million in debt service. The company ended the quarter with $690 million in investable cash, after $1.051 billion in total cash and marketable securities minus $361 million reserved for bonuses and deferred compensation.
Forward guidance for Q2 FY27 calls for fee revenue of $860 million to $878 million and adjusted diluted EPS of $1.30 to $1.40. The outlook includes only two months of AMS contribution, given the September 1 closing date.
Shares slipped 1.1% to $81.14 following the earnings announcement. Korn Ferry operates in a $450 billion addressable market with roughly 9,000 colleagues across more than 50 countries. It also serves as the official Talent & Organizational Consulting Partner of the LA28 Olympics, supporting nearly 5,000 people contributing to the Games.
