Korn Ferry (KFY) Q3 2026 earnings summary

Executive summary

• Q3 FY26 fee revenue reached $717.4 million, up 7% year-over-year, with growth across all solutions and strong profitability.

• Net income attributable to shareholders rose 12% year-over-year to $65.3 million, with a margin of 9.1%.

• Adjusted EBITDA increased 8% year-over-year to $123.1 million, with a margin of 17.2%.

• Adjusted diluted EPS rose 8% to $1.28, while diluted EPS was $1.23, up 12% year-over-year.

• Strategic focus on integrated solutions, digital transformation, and deepening client relationships, with marquee and diamond accounts generating nearly 40% of total fee revenues.

Financial highlights

• Consolidated fee revenue grew 7% year-over-year to $717.4 million in Q3 FY26.

• Net income attributable to shareholders was $65.3 million, up 12% year-over-year.

• Adjusted EBITDA was $123.1 million, up 8% year-over-year, with a margin of 17.2%.

• Estimated remaining fees under contract rose 11% to $1.85 billion, with $1.1 billion expected to be recognized within a year.

• Cash and marketable securities totaled $1,218.5 million at quarter-end.

Outlook and guidance

• Q4 FY26 fee revenue expected between $730 million and $750 million.

• Adjusted EBITDA margin guidance of 17.1%-17.3%.

• Adjusted and GAAP diluted EPS projected between $1.34 and $1.40.

• Guidance assumes no material negative impact from geopolitical or economic disruptions.

• Management expects continued growth, supported by investments in talent, technology, and strategic acquisitions.