Revenue Performance
Korn Ferry delivered solid top-line results for the third quarter of fiscal year 2026, generating fee revenue of $717.4 million. This represents a 7% year-over-year increase, or 4% on a constant currency basis, driven by growth across all business solutions. Executive Search led the firm’s growth with a 13% year-over-year revenue increase to $231.9 million, fueled by higher billed engagements and higher average fees per engagement. Both Professional Search & Interim and Consulting solutions achieved 5% fee revenue growth, posting $137.0 million and $166.9 million, respectively. Digital fee revenue rose 4% to $94.0 million, supported by an 8% increase in Subscription & License fee revenue, while Recruitment Process Outsourcing grew 3% to $87.5 million. The firm concluded the quarter with $1.9 billion in estimated remaining fees under existing contracts, an 11% increase year-over-year.
Profitability and Margins
The company reported net income attributable to Korn Ferry of $65.3 million, marking a 12% increase from the prior-year period, with a net income margin of 9.1%. Diluted earnings per share increased 12% to $1.23, while adjusted diluted earnings per share rose 8% year-over-year to $1.28. Adjusted EBITDA reached $123.1 million, an 8% year-over-year improvement, driven by the higher fee revenues which were partially offset by increased compensation and benefit expenses. The Adjusted EBITDA margin remained stable at 17.2%, essentially flat compared to the third quarter of the previous fiscal year.
Operational Highlights
Management noted that the firm’s performance reflects its ongoing evolution to address broad global shifts in demographics and technological advancements. The macroeconomic environment continues to present opportunities for Korn Ferry to leverage its global expertise in solving client performance challenges. Highlighting its focus on talent, the company announced its role as a Founding Partner of the LA28 Olympic and Paralympic Games. Looking ahead, assuming steady global economic and geopolitical conditions, the company expects fourth-quarter fee revenue to range between $730 million and $750 million, with diluted earnings per share projected between $1.34 and $1.40.