Korn Ferry International delivered a robust set of financial results for the second quarter of fiscal 2026, surpassing market expectations across several key metrics. The positive report card provided a significant boost to the company’s share price in subsequent trading sessions. Investors are now assessing whether this momentum can be sustained into the next quarter.
Financial Highlights Exceed Forecasts
The global organizational consulting firm reported fee revenue of $722 million, marking a 7% year-over-year increase. This figure comfortably exceeded the analyst consensus estimate of $705.16 million. Profitability metrics also outperformed, with adjusted earnings per share (EPS) climbing 10% to $1.33, ahead of the projected $1.31. Adjusted EBITDA rose 7% to $125 million, maintaining a steady margin of 17.3%.
This performance underscores solid operational execution within Korn Ferry’s talent consulting and recruitment segments, providing a clear catalyst for the recent equity appreciation.
Capital Return and Forward Guidance
Alongside the earnings, the company’s board announced a quarterly cash dividend of $0.48 per share, payable on January 15 (record date: December 19). This translates to an annualized dividend of $1.92 and a current yield of approximately 3.0%. Furthermore, the board authorized a new share repurchase program for up to $331.40 million, signaling confidence in returning capital to shareholders.
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Looking ahead, management issued a more conservative outlook for the third quarter. Guidance projects fee revenue in the range of $680 million to $694 million and adjusted diluted EPS between $1.19 and $1.25. This forecast sits slightly below some analyst projections, indicating a degree of caution regarding near-term business conditions.
Analyst Sentiment and Price Targets
The strong quarterly print prompted several analyst firms to revise their valuations. Goldman Sachs raised its price target to $77.00 from $74.00, reiterating a “Buy” rating. The current average analyst consensus stands at “Moderate Buy,” with an average price target of $78.67.
Market experts note that while the updated targets reflect the better-than-expected quarterly results, the tempered guidance for Q3 introduces a note of near-term uncertainty.
Conclusion: Korn Ferry’s latest quarterly report presented a clear beat on revenue and earnings, complemented by a shareholder-friendly capital allocation strategy featuring a dividend and a substantial buyback authorization. However, the company’s own moderated expectations for the coming quarter suggest the robust growth trajectory may face headwinds. The confirmed dividend payment in January and the new repurchase program offer tangible, immediate value for investors amid the evolving outlook.
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