Korn Ferry (KFY)

Price$85.31Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong cash earnings now compete with acquisition debt and integration risk.

At the observed market level, Korn Ferry trades at about 16 times FY26 diluted earnings. FY26 free cash flow—cash left after running the business and capital spending—was about $324 million, implying roughly 13 times pre-deal free cash flow. Those are reasonable, not bargain, multiples for a cyclical consulting and recruiting firm. The AMS deal adds growth but also debt and new shares, so the present valuation needs successful integration and at least partial delivery of management’s targeted earnings uplift.

Big pictureRevenue and cash flow recovered strongly, but past swings show this remains a cyclical business.

FY26 revenue rose to about $2.94 billion from $2.76 billion, net income increased to $277.4 million from $246.1 million, and operating cash flow reached $414.2 million. After $89.9 million of capital spending, free cash flow was about $324 million. Yet diluted earnings per share ranged from $2.09 to $5.98 across FY21-FY26, showing real cyclicality. Korn Ferry itself says demand falls when economic activity slows because clients hire less and reduce outside talent spending.

Business strengthKorn Ferry entered the deal with real financial cushion and a record of returning cash to owners.

At April 30, Korn Ferry had about $1.10 billion of cash against $596 million of debt, leaving roughly $499 million of net cash. It repurchased $115.7 million of shares and paid $104.6 million in dividends during FY26, while stock compensation was $47.7 million. Shares outstanding had fallen about 7% since FY21. However, the AMS closing issued 3.12 million new shares, reversing much of that shrinkage, and the large cash payment means the old net-cash cushion no longer describes the post-deal balance sheet.

What could change the storyAMS can create upside through contracted revenue, but missed targets would make the new debt more painful.

AMS was producing about $650 million of annual fee revenue and $100 million of adjusted operating cash earnings before the deal; management expects about $140 million within a year and says AMS brings more than $1.5 billion of remaining contracted fees. That is the bull case: more predictable revenue, cross-selling, and higher earnings. The bear case is failed integration or a hiring downturn while borrowing costs rise. The $600 million term loan and sizable cash outlay make missed targets more expensive than before.

AI: News

Strong fiscal-year finishFourth-quarter results beat expectations and showed another year of improving revenue, earnings, and shareholder returns.

On June 23, Korn Ferry reported Q4 FY26 fee revenue of $759.8 million, up 7%, and adjusted diluted earnings per share of $1.40 versus $1.38 expected. Full-year fee revenue reached $2.9 billion and net income was $277.4 million. The shares rose about 5.9% in premarket trading and finished the day up about 5.8%, a reaction consistent with the earnings beat, though market moves can reflect other factors.

AMS deal announcedThe AMS purchase adds major scale and contracted revenue, but it also raises leverage and dilution.

On June 29, Korn Ferry agreed to buy AMS for about £850 million, roughly $1.1 billion at the announced exchange rate. AMS was running at about $650 million of fee revenue and $100 million of adjusted operating cash earnings, with management targeting about $140 million within a year and more than $1.5 billion of remaining contracted fees. The stock closed lower that day and fell again next session; the timing suggests investor caution, but does not prove the deal caused the move.

AMS acquisition completedClosing removed deal uncertainty, but the final cash and share issuance confirmed the transaction's size.

On September 1, Korn Ferry completed the AMS acquisition. At closing it paid about £473 million plus $326 million in cash and issued 3,118,628 shares. Before closing, it had also arranged a $600 million term loan, using part to redeem $400 million of older notes and the remainder for the acquisition. The stock closed modestly lower on September 1 and September 2; attributing those moves solely to completion would be uncertain.

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Total cash / debt

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$2.94B	$2.76B	$2.80B	$2.86B	$2.64B	$1.82B	$1.98B	$1.97B	$1.82B	$1.62B	$1.35B	$1.07B	$995.6M	$849.7M	$826.8M	$776.3M	$599.6M	$676.1M
Gross profit	$2.59B	$2.45B	$2.46B	$2.60B	—	—	—	—	$1.75B	$1.55B	$1.29B	$1.03B	$955.6M	$820.7M	$807.1M	—	—	—
Gross margin	88.08%	88.55%	88.09%	90.68%	—	—	—	—	95.95%	95.59%	95.56%	96.28%	95.99%	96.59%	97.63%	—	—	—
Operating expenses	$2.56B	$2.41B	$2.58B	$2.55B	$2.17B	$1.66B	$1.80B	$1.83B	$1.61B	$1.50B	$1.29B	$952.0M	$904.0M	$805.8M	$743.9M	$690.5M	$602.4M	$672.4M
Operating income	$374.7M	$346.3M	$212.9M	$316.3M	$470.1M	$155.8M	$176.0M	$140.8M	$208.4M	$120.3M	$52.7M	$114.0M	$91.6M	$43.9M	$82.9M	$85.8M	−$2.7M	$3.7M
Operating margin	12.75%	12.54%	7.62%	11.05%	17.78%	8.56%	8.90%	7.13%	11.46%	7.42%	3.91%	10.70%	9.20%	5.16%	10.02%	11.05%	−0.45%	0.55%
EBITDA	$473.6M	$426.6M	$290.9M	$384.7M	$533.6M	$217.6M	$231.3M	$187.3M	$257.0M	$167.5M	$88.9M	$141.6M	$117.8M	$62.9M	$96.9M	$98.5M	$8.8M	$15.3M
EBITDA margin	16.12%	15.45%	10.41%	13.43%	20.19%	11.96%	11.70%	9.49%	14.13%	10.33%	6.60%	13.28%	11.83%	7.40%	11.72%	12.68%	1.46%	2.26%
Net income	$277.4M	$246.1M	$169.2M	$209.5M	$326.4M	$114.5M	$104.9M	$102.7M	$133.8M	$84.2M	$30.9M	$88.4M	$72.7M	$33.3M	$54.3M	$58.9M	$5.3M	−$10.1M
Net profit margin	9.44%	8.91%	6.05%	7.32%	12.35%	6.29%	5.31%	5.20%	7.35%	5.19%	2.30%	8.29%	7.30%	3.92%	6.57%	7.58%	0.88%	−1.49%
Basic EPSper basic share	$5.33	$4.69	$3.25	$3.98	$6.04	$2.11	$1.91	$1.84	$2.39	$1.48	$0.58	$1.78	$1.51	$0.71	$1.17	$1.30	$0.12	-$0.23
Diluted EPSper diluted share	$5.22	$4.60	$3.23	$3.95	$5.98	$2.09	$1.90	$1.81	$2.35	$1.47	$0.58	$1.76	$1.48	$0.70	$1.15	$1.27	$0.12	-$0.23

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈15.70%of listed shares

BlackRock, Inc.7.99M shares · Jun 30, 2026

View holders

Top 20 reported holders of KFY
Holder	% owned
BlackRock, Inc.	≈15.70%7.99M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈6.77%3.44M shares
DIMENSIONAL FUND ADVISORS LP	≈6.23%3.17M shares
WELLINGTON MANAGEMENT GROUP LLP	≈4.95%2.52M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈4.58%2.33M shares
STATE STREET CORP	≈4.16%2.11M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	≈4.12%2.1M shares
Invesco Ltd.	≈3.58%1.82M shares
AMERICAN CENTURY COMPANIES INC	≈3.25%1.65M shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.72%1.38M shares
MORGAN STANLEY	≈2.11%1.07M shares
VICTORY CAPITAL MANAGEMENT INC	≈1.81%919.81K shares
PZENA INVESTMENT MANAGEMENT LLC	≈1.71%867.68K shares
Thrivent Financial for Lutherans	≈1.67%851.58K shares
Allspring Global Investments Holdings, LLC	≈1.60%812.23K shares
ROYCE & ASSOCIATES LP	≈1.55%788.36K shares
DEPRINCE RACE & ZOLLO INC	≈1.47%747.96K shares
NORTHERN TRUST CORP	≈1.37%694.21K shares
AMERIPRISE FINANCIAL INC	≈1.31%663.83K shares
Bank of New York Mellon Corp	≈1.29%658.03K shares

Percentages use 50.86M shares of this listed class outstanding on Jun 18, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)21$29.85M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Oct 14, 2025Form 4	Robinson Lori JeanDirector	SellCommon Stock, par value $0.01 per share	2.0K	$69.44	$138.9K	22.5K
Oct 9, 2025Form 4	BURNISON GARY DCEO	SellCommon Stock, par value $0.01 per share	16.9K	$70.01	$1.18M	198.4K
Oct 8, 2025Form 4	BURNISON GARY DCEO	SellCommon Stock, par value $0.01 per share	31.8K	$70.59	$2.24M	215.3K
Oct 7, 2025Form 4	BURNISON GARY DCEO	SellCommon Stock, par value $0.01 per share	28.4K	$70.61	$2.00M	247.1K
Jul 16, 2025Form 4	Distefano MichaelSee Remarks	SellCommon Stock, par value $0.01 per share	9.6K	$72.25	$694.0K	54.3K

Review ownership filings at SEC.gov ↗

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Korn Ferry (KFY)

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