Korn Ferry (KFY) AI Stock Analysis
KFY AI stock analysis summary
AI ResearchKorn Ferry (NYSE: KFY) is an organizational consulting and executive search firm with trailing twelve-month revenue of $2.96B. The company rebounded in FY2026 with 6.4% revenue growth and maintains a net cash position of $223.2M. Trading at a trailing P/E of 13.8x, the stock carries a 3.01% forward dividend yield.
- Market cap
- $4.09B
- Revenue (TTM)
- $2.96B
- P/E
- 13.8x fwd 13.0x
- 1Y return
- 10.3% S&P 500 16.8%
- Avg. target
- $90.25 23.6% vs last close
Bull case
- Korn Ferry returned to top-line growth in FY2026 with revenue expanding 6.4% to $2.94B and free cash flow rising to $324.3M.
- The balance sheet is well capitalized with $223.2M in net cash and a current ratio of 2.37.
- Valuation multiples remain discounted relative to peers, with a trailing P/E of 13.8x versus the US-listed Industrials median of 24.8x.
Bear case
- Long-term share performance has lagged the broader market, returning 7.5% over 5 years compared to 83.0% for the S&P 500.
- Gross margin contracted to 25.6% in FY2026 from 88.6% in FY2025 and 95.0% in FY2022.
- The company previously experienced back-to-back revenue drops of 2.4% in FY2024 and 1.2% in FY2025.
What Korn Ferry does
Korn Ferry is an organizational consulting firm operating across four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The firm specializes in recruiting board-level, chief executive, and senior management positions worldwide. In addition to search services, it delivers organizational strategy, succession planning, leadership development, and total rewards consulting. Korn Ferry also provides tech-enabled solutions that analyze structures, behaviors, and roles to assist clients with business transformations. Headquartered in Los Angeles, California, the company serves public and private corporations, middle-market enterprises, emerging growth firms, non-profits, and government agencies.
Growth and profitability
Korn Ferry generated $2.94B in revenue in FY2026, growing 6.4% after revenue fell 2.4% in FY2024 and 1.2% in FY2025. Annual net income increased to $277.4M in FY2026, up from $246.1M in FY2025 and $169.2M in FY2024, though down from $326.4M in FY2022. FY2026 operating margin expanded to 12.8%, while gross margin registered at 25.6%. In the trailing twelve months, revenue reached $2.96B with an operating margin of 11.8% and diluted EPS of $5.29. For the latest quarter ended July 31, 2026, quarterly revenue grew 6.8% year-over-year, while quarterly earnings increased 5.3%.
Balance sheet and cash flow
As of July 31, 2026, Korn Ferry held $816.3M in cash and short-term investments against $593.1M in total debt, yielding a net cash position of $223.2M. The company has a current ratio of 2.37 and a debt-to-equity ratio of 0.30, backed by $1.99B in shareholders' equity and $3.82B in total assets. Operating cash flow reached $414.2M in FY2026, funding $89.9M in capital expenditures to generate $324.3M in free cash flow. In FY2026, capital returns included $115.7M in share buybacks and $104.6M in dividends paid, contributing to a 4.1% reduction in share count over 5 years.
Valuation and performance
Korn Ferry trades at a trailing P/E of 13.8x and a forward P/E of 13.0x, both below the median of its US-listed Industrials peers of 24.8x and 17.2x, respectively. Its enterprise value stands at $3.92B, producing an EV/EBITDA of 7.7x compared to the peer median of 13.9x, and a price-to-sales multiple of 1.4x against the peer median of 1.5x. Over the past year, the stock returned 10.3%, lagging the S&P 500 return of 16.8%. Over a 5-year period, Korn Ferry has gained 7.5%, trailing the S&P 500 return of 83.0%.
KFY dividend
Korn Ferry pays a forward annual dividend of $2.20 per share, which equates to a dividend yield of 3.01%. The company maintains a payout ratio of 39.1% and distributes dividends quarterly. It has paid dividends for 12 consecutive years, delivering a 5-year annualized dividend growth rate of 36.9%. The most recent ex-dividend date was September 22, 2026.
What analysts expect
Wall Street coverage includes 4 Strong Buy ratings and 1 Hold rating, with no Buy, Sell, or Strong Sell recommendations. The mean price target is $90.25, representing an upside of 23.6% from the last close of $73.03. For the fiscal year ending April 30, 2027, consensus estimates project EPS of $5.66 on revenue of $3.50B. Across the last 4 quarters, the company delivered 4 EPS beats. The next earnings release date is December 8, 2026.
Key risks and what to watch
- Revenue showed cyclical sensitivity with contractions in both FY2024 and FY2025 before recovering.
- The stock exhibits market volatility with a beta of 1.26.
- Gross margin saw a sharp decline to 25.6% in FY2026, which may impact future profitability if sustained.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this KFY AI stock analysis
This page is an AI-written research summary of Korn Ferry (KFY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: KFY income statement, KFY balance sheet, KFY key metrics, KFY analyst forecast, KFY chart. See the KFY stock overview for the latest quote and news.
KFY AI stock analysis FAQ
What dividend does Korn Ferry pay?
Korn Ferry pays an annualized dividend of $2.20 per share on a quarterly basis, reflecting a dividend yield of 3.01% and a payout ratio of 39.1%.
How does Korn Ferry's valuation compare to its sector?
At a trailing P/E of 13.8x and EV/EBITDA of 7.7x, Korn Ferry trades below the median of its US-listed Industrials peers, which sit at 24.8x and 13.9x, respectively.
What is Korn Ferry's debt and liquidity position?
As of July 31, 2026, the company held $816.3M in cash and short-term investments against $593.1M in debt, providing $223.2M in net cash alongside a current ratio of 2.37.
What are analysts forecasting for Korn Ferry's earnings?
Analysts forecast EPS of $5.66 on revenue of $3.50B for the fiscal year ending April 30, 2027, and project EPS of $6.38 for the following fiscal year.