Korn Ferry (KFY) Q1 2027 earnings summary

Executive summary

• Fee revenue reached $756.5 million in Q1 FY27, up 7% year-over-year, marking the sixth consecutive quarter of top-line growth across all regions.

• Adjusted EBITDA rose 7% to $128.2 million, maintaining a 17% margin year-over-year.

• Adjusted diluted EPS increased 9% year-over-year to $1.43.

• Net income attributable to shareholders was $69.0 million, a 4% increase year-over-year, with a margin of 9.1%.

• Completed the acquisition of AMS, expanding Workforce Solutions and adding approximately $650 million in annual fee revenue.

Financial highlights

• Americas fee revenue grew 9% to $442.1 million, EMEA rose 4% to $227.7 million, and APAC increased 1% to $86.7 million.

• Double-digit growth in Search (10%) and Workforce Solutions (11%).

• Estimated remaining fees under contract rose 14% year-over-year to $1.92 billion.

• Adjusted net income attributable to shareholders was $74.6 million, up 8% year-over-year.

• Dividend increased 15% to $2.20 per share, with a quarterly dividend of $0.55 per share declared.

Outlook and guidance

• Q2 FY27 fee revenue expected between $860 million and $878 million, including AMS contributions.

• Adjusted EBITDA margin projected at 16.8%-17.2%; adjusted diluted EPS expected at $1.30-$1.40.

• Guidance includes after-tax impact of incremental intangible asset amortization, net interest expense, and shares issued for AMS acquisition.

• Weighted average diluted shares expected to rise to 54–55 million due to AMS acquisition.

• Management anticipates recognizing $483.3 million of remaining performance obligations in the remainder of fiscal 2027.