The quarter cleared the market’s bar. Published estimates clustered around roughly $1.35-$1.37 of EPS and about $746 million of revenue; Korn Ferry delivered adjusted diluted EPS of $1.43 and fee revenue of $756.5 million. That is a genuine beat, not merely year-over-year growth.
| Metric | Q1 FY27 | Q1 FY26 | Change / expectation |
|---|---|---|---|
| Fee revenue | $756.5M | $708.6M | +6.8%; above published estimates of roughly $746M |
| Diluted EPS | $1.32 | $1.26 | GAAP; above prior year |
| Adjusted diluted EPS | $1.43 | $1.31 | +9.2%; above published consensus of roughly $1.35 |
| Adjusted EBITDA | $128.2M | $120.4M | +6.5% |
| Adjusted EBITDA margin | 17.0% | 17.0% | Flat |
| New business | $832.3M | $742.2M | +12.1% |
| Estimated remaining fees under existing contracts | $1.915B | $1.674B | +14.4% |
Growth was broad enough to support the beat. Fee revenue increased 7% year over year at both actual and constant currency, with Search up 10.4% and Workforce Solutions up 11.1%; Americas led at 9.4%, while APAC grew only 1.4%.
The quality of the earnings beat was mixed rather than explosive. Adjusted EBITDA rose to $128.2 million, but the consolidated margin stayed at 17.0%, while GAAP net-income margin slipped to 9.1% from 9.4%. Americas improved sharply to a 26.3% adjusted EBITDA margin, but APAC declined to 22.2% from 23.1% and corporate costs increased to $44.7 million from $35.8 million.
AMS is now the main test of whether this beat compounds. The acquisition closed September 1, after the reported quarter, so Q1 results do not yet demonstrate the combined company. Korn Ferry says its forward adjusted EPS includes two months of AMS amortization, interest expense and incremental shares, while integration and acquisition costs prevent a comparable GAAP outlook. 〔0〕
Net read: a narrow beat with execution still ahead. Revenue, new business and adjusted EPS came in better than expected, but flat group margins and the untested AMS integration keep this from reading as a clean operating breakout. The filing improves the near-term earnings picture; the next quarter will show whether the acquisition adds durable growth without diluting profitability.
Read the original 8-K on SEC EDGAR ↗