Korn Ferry (NYSE:KFY) shares advanced Tuesday after the talent and consulting firm delivered stronger quarterly profit and revenue amid broad-based growth across its businesses.
- Korn Ferry shares are powering higher. Why is KFY stock up today?
Investors also assessed the company's upbeat momentum and fresh guidance as demand for organizational transformation services continued to strengthen.
The firm reported second-quarter adjusted earnings per share of $1.33, beating the analyst consensus estimate of $1.31.
Quarterly sales of $729.80 million beat the Street view of $705.970 million.
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Metrics
Korn Ferry posted second-quarter fee revenue of $721.7 million, up 7% from last year. Executive Search and Professional Search & Interim revenue rose 10% and 17%, respectively.
Korn Ferry said that in a rapidly changing, digital and uncertain economy, companies need adaptable strategies, and it positions itself as a partner that helps organizations align strategy, operations and talent to boost performance, drive growth and build a lasting legacy of change.
"Our performance during the quarter was outstanding, as we achieved our fourth consecutive quarter of accelerated growth, led by our Marquee and Diamond accounts," said Gary D. Burnison, CEO, Korn Ferry.
Adjusted EBITDA rose to $124.8 million, up 7% from a year ago. The margin held steady at 17.3%, remaining essentially flat year over year.
The increase in Adjusted EBITDA was due to an increase in fee revenue, partially offset by increases in compensation and benefits expenses and cost of services.
The company exited the quarter with cash and equivalents worth $761.579 million.
The estimated remaining fees under existing contracts by the end of the second quarter were $1.842 billion, up 20% YoY.
Dividend
Korn Ferry announced a cash dividend of 48 cents per share that will be payable on January 15, 2026, to shareholders of record on December 19, 2025.
Outlook
Korn Ferry expects third-quarter adjusted EPS in the range of $1.19 to $1.25. The outlook brackets the Street's estimate of $1.24.
Korn Ferry projects third-quarter GAAP EPS between $1.15 and $1.21. The forecast comes in below the Street's $1.26 estimate.
For the third quarter, the company expects fee revenue between $680 million and $694 million.
KFY Price Action: Korn Ferry shares were up 3.52% at $67.26 at the time of publication on Tuesday, according to Benzinga Pro data.
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