Korn Ferry's Diversification Fuels Q4 Beat And Confident Forecast

Korn Ferry KFY shares rose on Wednesday following the release of its fourth-quarter fiscal year 2025 results.

The company reported fourth-quarter adjusted earnings per share of $1.32, beating the analyst consensus estimate of $1.26. Quarterly sales of $719.83 million outpaced the Street view of $689.90 million.

The company’s fee revenue rose 3% year-over-year to $712.0 million in the quarter (4% at constant currency), driven by higher fees in Executive Search and Recruitment Process Outsourcing (RPO), though partially offset by a decline in Consulting fee revenue.

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Executive Search saw its fee revenue climb to $227.0 million in the fourth quarter of fiscal year 2025, marking a 14% increase year-over-year (15% at constant currency).

Driven by increased fee revenue and disciplined cost management, the company’s adjusted EBITDA for the fourth quarter reached $121.1 million, with its margin expanding by 70 basis points to 17.0% year-over-year, according to a press release.

The company exited the quarter with cash and equivalents worth $1.006 billion, higher than $941.005 million a year ago.

During the quarter, the company also repurchased 232,000 shares of stock for $15.0 million and paid out $25 million in dividends.

Korn Ferry’s CEO, Gary D. Burnison, said that the company continues to meet its financial and strategic goals despite global economic and political changes. He attributed this success to Korn Ferry’s diversification strategy and ongoing investments in expanding offerings, which he believes will continue to drive future growth.

According to Benzinga Pro, KFY stock has gained over 9% in the past year. Investors can gain exposure to the stock via Tidal Trust III Rockefeller U.S. Small-Mid Cap ETF RSMC.

Outlook

Korn Ferry expects first-quarter adjusted EPS to range between $1.18 and $1.26, compared to the consensus estimate of $1.20. The company also forecasts quarterly fee revenue between $675 million and $695 million.

Price Action: KFY shares are trading higher by 8.99% to $72.76 at last check Wednesday.

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