Korn Ferry (KFY) Q2 2026 earnings summary

Executive summary

• Q2 FY'26 fee revenue reached $721.7 million, up 7% year-over-year, marking the fourth consecutive quarter of accelerating growth and reflecting strong demand for talent solutions and successful execution of transformation strategies.

• Net income attributable to shareholders was $72.4 million, up 19% year-over-year, with a margin of 10.0%.

• Adjusted EBITDA was $124.8 million, up 7% year-over-year, with a margin of 17.3%.

• Adjusted diluted EPS rose 10% year-over-year to $1.33; diluted EPS was $1.36, up 19%.

• Strong client relationships, with 40% of fee revenues from marquee accounts and 60% of clients purchasing multiple solutions.

Financial highlights

• Consolidated fee revenue grew 7% year-over-year to $721.7 million, with total revenue at $729.8 million.

• Net income attributable to shareholders was $72.4 million, up from $60.8 million a year ago.

• Adjusted EBITDA for the quarter was $124.8 million, up from $117.0 million year-over-year, with a margin of 17.3%.

• Adjusted net income was $70.5 million, up 9% year-over-year.

• Estimated remaining fees under existing contracts rose 20% year-over-year to $1.84 billion.

Outlook and guidance

• Q3 FY'26 fee revenue expected between $680–$694 million.

• Adjusted EBITDA margin projected at 17.2%–17.4%.

• Adjusted diluted EPS guidance of $1.19–$1.25; GAAP diluted EPS of $1.15–$1.21.

• Management remains focused on investing in growth initiatives, including hiring, IP development, and M&A, while maintaining a balanced approach to capital allocation.

• The company expects to continue returning capital to shareholders through dividends and opportunistic share repurchases, subject to financial covenants.