Korn Ferry (NYSE:KFY) shares declined on Monday after the company reported third-quarter fiscal 2026 earnings results.
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The company posted EPS of $1.28, exceeding the consensus estimate of $1.24, and sales of $725 million beat the consensus estimate of $695.1 million.
Metrics
Korn Ferry posted fee revenue of $717.4 million, up 7% year-over-year (Y/Y).
Executive Search revenue increased 13% Y/Y, followed by Professional Search & Interim and Consulting revenue, both at 5% Y/Y in the quarter.
Adjusted EBITDA rose to $123.1 million, from $114.5 million a year ago quarter. The margin held steady at 17.2%, remaining essentially flat year over year.
The increase in Adjusted EBITDA was due to an increase in fee revenue.
The company exited the quarter with cash and equivalents worth $938.4 million.
The estimated remaining fees under existing contracts by the end of the third quarter were $1.9 billion, up 11% Y/Y, aided by Digital (+16% Y/Y), Consulting (+12% Y/y), and RPO (+10% Y/Y).
Outlook
Korn Ferry expects fourth-quarter EPS of $1.34-$1.40 vs the street view of $1.39.
Also, the company sees fee revenue of $730 million and $750 million for the quarter.
KFY Price Action: Korn Ferry shares were down 3.36% at $61.46 at publication on Monday.
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