Overview

• Global consulting firm's Q4 revenue rose 7% yr/yr, beating analyst expectations

• Adjusted diluted EPS for Q4 was $1.40

• Company repurchased $78.8 mln in stock during the quarter

Outlook

• Korn Ferry expects Q1 FY27 fee revenue between $725 mln and $745 mln

• Company sees Q1 FY27 diluted EPS between $1.32 and $1.38

• Guidance assumes no material negative impact from Middle East conflict or global conditions

Result Drivers

• PROFESSIONAL SEARCH & INTERIM - Fee revenue rose 14% yr/yr, driven by higher average bill rates in Interim and increased fees per engagement in Permanent Placement

• EXECUTIVE SEARCH - Revenue grew 7% yr/yr, attributed to higher weighted-average fees billed per engagement and growth across all regions

• CONSULTING - Consulting revenue increased 7% yr/yr, mainly due to higher fees in leadership development, assessment & succession, and organizational strategy

Company press release: ID:nBwbtv2yla

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$768.3 mln	$743.34 mln (5 Analysts)
Q4 EPS		$1.39
Q4 Basic EPS		$1.42
Q4 Fee Revenue		$759.8 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the employment services peer group is "buy"

• Wall Street's median 12-month price target for Korn Ferry is $80.00, about 18% above its June 22 closing price of $67.77

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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