Revenue growth has stabilized at 6.7% in 2026Q4, though operating margins remain under pressure at 13.2% due to challenges in scaling SG&A expenses.
| Metric | Apr'26 | Apr'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 | Apr'19 | Apr'18 | Apr'17 | Apr'16 | Apr'15 | Apr'14 | Apr'13 | Apr'12 | Apr'11 | Apr'10 | Apr'09 | Apr'08 | Apr'07 | Apr'06 | Apr'05 | Apr'04 | Apr'03 | Apr'02 | Apr'01 | Apr'00 | Apr'99 | Apr'98 |
|---|
| Sales/Revenue | 2.94B | 2.76B | 2.8B | 2.86B | 2.64B | 1.82B | 1.98B | 1.97B | 1.82B | 1.62B | 1.35B | 1.07B | 995.56M | 849.7M | 826.76M | 776.25M | 599.65M | 676.13M | 835.64M | 689.2M | 551.77M | 476.38M | 350.7M | 338.47M | 393.89M | 636.3M | 487.56M | 356.1M | 301M |
| Revenue Growth % | 6.43% | -1.23% | -2.39% | 8.34% | 45.25% | -7.96% | 0.18% | 8.48% | 12.2% | 20.42% | 26.33% | 7.08% | 17.17% | 2.77% | 6.51% | 29.45% | -11.31% | -19.09% | 21.25% | 24.91% | 15.83% | 35.83% | 3.62% | -14.07% | -38.1% | 30.51% | 36.92% | 18.31% | - |
| Cost of Goods Sold | 2.19B | 316.07M | 332.85M | 266.93M | 131.14M | 1.38B | 130.48M | 123.32M | 125.96M | 127.63M | 114.43M | 77.61M | 75.17M | 65.85M | 55.89M | 51.77M | 41.59M | 49.39M | 540.06M | 447.69M | 0 | 0 | 0 | 0 | 0 | 372.95M | 285.57M | 217.3M | 190M |
| COGS % of Revenue | 74.39% | 11.45% | 11.91% | 9.32% | 4.96% | 75.82% | 6.6% | 6.25% | 6.92% | 7.87% | 8.5% | 7.28% | 7.55% | 7.75% | 6.76% | 6.67% | 6.93% | 7.3% | 64.63% | 64.96% | - | - | - | - | - | 58.61% | 58.57% | 61.02% | 63.12% |
| Gross Profit | 752.49M | 2.45B | 2.46B | 2.6B | 2.51B | 440.14M | 1.85B | 1.85B | 1.69B | 1.49B | 1.23B | 988.46M | 920.39M | 783.85M | 770.87M | 724.49M | 558.06M | 626.74M | 295.59M | 241.51M | 0 | 0 | 0 | 0 | 0 | 280.83M | 215.17M | 138.8M | 111M |
| Gross Margin % | 25.61% | 88.55% | 88.09% | 90.68% | 95.04% | 24.18% | 93.4% | 93.75% | 93.08% | 92.13% | 91.5% | 92.72% | 92.45% | 92.25% | 93.24% | 93.33% | 93.07% | 92.7% | 35.37% | 35.04% | - | - | - | - | - | 44.13% | 44.13% | 38.98% | 36.88% |
| Gross Profit Growth % | -69.22% | -0.72% | -5.17% | 3.37% | 470.8% | -76.17% | -0.2% | 9.27% | 13.35% | 21.24% | 24.67% | 7.4% | 17.42% | 1.68% | 6.4% | 29.82% | -10.96% | 112.03% | 22.39% | - | - | - | - | - | -100% | 30.52% | 55.02% | 25.05% | - |
| Operating Expenses | 377.74M | 2.1B | 2.18B | 2.24B | 2.04B | 284.35M | 1.67B | 1.71B | 1.49B | 1.37B | 1.18B | 874.43M | 828.78M | 739.98M | 688M | 638.7M | 560.79M | 623.01M | 203.73M | 159.25M | 475.59M | 410.6M | 334.91M | 351.77M | 456.6M | 208.28M | 153.08M | 104.2M | 95.6M |
| OpEx % of Revenue | 12.85% | 75.94% | 78.02% | 78.15% | 77.26% | 15.62% | 84.5% | 86.62% | 81.62% | 84.71% | 87.59% | 82.02% | 83.25% | 87.09% | 83.22% | 82.28% | 93.52% | 92.14% | 24.38% | 23.11% | 86.19% | 86.19% | 95.5% | 103.93% | 115.92% | 32.73% | 31.4% | 29.26% | 31.76% |
| Selling, General & Admin | 247.73M | 2.02B | 2.1B | 2.17B | 1.98B | 191.78M | 1.56B | 1.66B | 1.44B | 1.29B | 1.11B | 837.37M | 798.93M | 698.12M | 673.06M | 623.9M | 528.62M | 569.51M | 193.29M | 149.97M | 466.58M | 402.16M | 316.36M | 319.33M | 406.32M | 581.23M | 438.65M | 94.9M | 87.8M |
| SG&A % of Revenue | 8.43% | 73.03% | 75.24% | 75.76% | 74.85% | 10.54% | 78.74% | 84.26% | 78.95% | 79.66% | 82.45% | 78.55% | 80.25% | 82.16% | 81.41% | 80.37% | 88.15% | 84.23% | 23.13% | 21.76% | 84.56% | 84.42% | 90.21% | 94.35% | 103.16% | 91.34% | 89.97% | 26.65% | 29.17% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 130.02M | 80.29M | 77.97M | 68.33M | 63.52M | 92.58M | 113.87M | 46.49M | 48.67M | 81.86M | 69.23M | 37.06M | 29.85M | 41.86M | 14.95M | 14.8M | 32.17M | 53.5M | 10.44M | 9.28M | 9M | 8.44M | 18.56M | 32.44M | 50.28M | -372.95M | -285.57M | 9.3M | 7.8M |
| Operating Income | 374.74M | 348.21M | 281.49M | 358.91M | 470.07M | 155.78M | 176.03M | 140.83M | 208.45M | 120.29M | 52.69M | 114.03M | 91.61M | 43.88M | 82.87M | 85.78M | -2.72M | 3.73M | 91.85M | 82.25M | 76.18M | 65.78M | 15.79M | -13.3M | -62.71M | 55.07M | 48.91M | 34.6M | 15.4M |
| Operating Margin % | 12.75% | 12.61% | 10.07% | 12.53% | 17.78% | 8.56% | 8.9% | 7.13% | 11.46% | 7.42% | 3.91% | 10.7% | 9.2% | 5.16% | 10.02% | 11.05% | -0.45% | 0.55% | 10.99% | 11.93% | 13.81% | 13.81% | 4.5% | -3.93% | -15.92% | 8.66% | 10.03% | 9.72% | 5.12% |
| Operating Income Growth % | 7.62% | 23.71% | -21.57% | -23.65% | 201.75% | -11.5% | 24.99% | -32.44% | 73.29% | 128.29% | -53.79% | 24.47% | 108.79% | -47.05% | -3.4% | 3251.54% | -173.02% | -95.94% | 11.67% | 7.97% | 15.81% | 316.6% | 218.69% | 78.78% | -213.86% | 12.6% | 41.36% | 124.68% | - |
| EBITDA | 473.59M | 428.5M | 359.45M | 427.25M | 533.6M | 217.63M | 231.34M | 187.31M | 257.03M | 167.55M | 88.91M | 141.63M | 117.78M | 62.88M | 96.88M | 98.46M | 8.77M | 15.31M | 102.29M | 91.53M | 85.18M | 75.63M | 25.82M | 6.15M | -44.76M | 82.79M | 62.45M | 43.9M | 23.1M |
| EBITDA Margin % | 16.12% | 15.52% | 12.86% | 14.92% | 20.19% | 11.96% | 11.7% | 9.49% | 14.13% | 10.33% | 6.6% | 13.28% | 11.83% | 7.4% | 11.72% | 12.68% | 1.46% | 2.26% | 12.24% | 13.28% | 15.44% | 15.88% | 7.36% | 1.82% | -11.36% | 13.01% | 12.81% | 12.33% | 7.67% |
| EBITDA Growth % | 10.52% | 19.21% | -15.87% | -19.93% | 145.19% | -5.93% | 23.5% | -27.12% | 53.41% | 88.44% | -37.22% | 20.25% | 87.31% | -35.1% | -1.6% | 1022.52% | -42.71% | -85.03% | 11.75% | 7.46% | 12.63% | 192.92% | 319.7% | 113.75% | -154.06% | 32.57% | 42.26% | 90.04% | - |
| D&A (Non-Cash Add-back) | 98.84M | 80.29M | 77.97M | 68.33M | 63.52M | 61.84M | 55.31M | 46.49M | 48.59M | 47.26M | 36.22M | 27.6M | 26.17M | 19M | 14.02M | 12.67M | 11.49M | 11.58M | 10.44M | 9.28M | 9M | 9.85M | 10.03M | 19.46M | 17.95M | 27.71M | 13.54M | 9.3M | 7.7M |
| EBIT | 374.74M | 365.27M | 243.61M | 321.6M | 458.19M | 192.98M | 173.15M | 151.23M | 219.86M | 126.59M | 85.7M | 123.5M | 95.29M | 50.19M | 82.59M | 92.24M | 17.95M | 45.64M | 91.85M | 82.25M | 76.18M | 65.78M | 24.32M | 2.98M | -12.43M | 55.07M | 48.91M | 34.6M | 15.4M |
| Net Interest Income | 20M | -20.36M | -20.97M | -25.86M | -25.29M | -29.28M | -22.18M | -16.89M | -13.83M | -14.61M | 237K | -1.78M | -2.36M | -2.37M | -1.79M | -2.54M | -2.62M | -1.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 237K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | -20M | 20.36M | 20.97M | 25.86M | 25.29M | 29.28M | 22.18M | 16.89M | 13.83M | 14.61M | 0 | 1.78M | 2.36M | 2.37M | 1.79M | 2.54M | 2.62M | 5.41M | 4.81M | 10.17M | 10.24M | 10.46M | 9.9M | 10.52M | 8.52M | 0 | 0 | 0 | 0 |
| Other Income/Expense | 13.71M | -3.3M | -58.84M | -63.18M | -37.17M | 7.92M | -25.06M | -6.49M | -2.42M | -4.28M | -3.93M | 5.67M | 7.41M | 3.94M | -2.06M | 3.92M | 7.44M | -15.8M | 7.14M | 244K | 842K | -7.1M | -8.12M | -9.33M | -47.87M | -1.62M | 3.84M | -92M | -3.5M |
| Pretax Income | 388.45M | 344.91M | 222.64M | 295.74M | 432.9M | 163.7M | 150.96M | 134.03M | 205.73M | 116.01M | 48.76M | 121.88M | 99.01M | 47.82M | 80.8M | 89.7M | 4.72M | -12.07M | 98.99M | 82.5M | 77.02M | 58.68M | 8.62M | -22.64M | -110.58M | 56.34M | 54.94M | -57.4M | 11.9M |
| Pretax Margin % | 13.22% | 12.49% | 7.96% | 10.33% | 16.38% | 8.99% | 7.63% | 6.79% | 11.31% | 7.15% | 3.62% | 11.43% | 9.95% | 5.63% | 9.77% | 11.56% | 0.79% | -1.79% | 11.85% | 11.97% | 13.96% | 12.32% | 2.46% | -6.69% | -28.07% | 8.85% | 11.27% | -16.12% | 3.95% |
| Income Tax | 107.63M | 93.84M | 50.08M | 82.68M | 102.06M | 48.14M | 43.95M | 29.54M | 70.13M | 29.1M | 18.96M | 33.53M | 28.49M | 16.64M | 28.35M | 32.69M | -485K | 384K | 36.08M | 30.16M | 19.59M | 20.25M | 3.22M | 2.04M | -12.33M | 25.33M | 24.13M | 9M | 6.7M |
| Effective Tax Rate % | 27.71% | 27.21% | 22.49% | 27.96% | 23.57% | 29.41% | 29.11% | 22.04% | 34.09% | 25.09% | 38.88% | 27.51% | 28.78% | 34.79% | 35.09% | 36.44% | -10.27% | -3.18% | 36.45% | 36.56% | 25.44% | 34.51% | 37.33% | -9.01% | 11.15% | 44.95% | 43.92% | -15.68% | 56.3% |
| Net Income | 277.43M | 246.06M | 169.15M | 209.53M | 326.36M | 114.45M | 104.95M | 102.65M | 133.78M | 84.18M | 30.91M | 88.36M | 72.69M | 33.29M | 54.3M | 58.87M | 5.3M | -10.09M | 66.21M | 55.5M | 59.43M | 38.62M | 5.4M | -22.9M | -98.25M | 31.01M | 30.81M | -66.4M | 5.2M |
| Net Margin % | 9.44% | 8.91% | 6.05% | 7.32% | 12.35% | 6.29% | 5.31% | 5.2% | 7.35% | 5.19% | 2.3% | 8.29% | 7.3% | 3.92% | 6.57% | 7.58% | 0.88% | -1.49% | 7.92% | 8.05% | 10.77% | 8.11% | 1.54% | -6.77% | -24.94% | 4.87% | 6.32% | -18.65% | 1.73% |
| Net Income Growth % | 12.75% | 45.47% | -19.27% | -35.8% | 185.15% | 9.06% | 2.24% | -23.27% | 58.92% | 172.32% | -65.01% | 21.55% | 118.34% | -38.69% | -7.76% | 1011.25% | 152.5% | -115.24% | 19.3% | -6.62% | 53.88% | 614.79% | 123.59% | 76.69% | -416.81% | 0.66% | 146.4% | -1376.92% | - |
| Net Income (Continuing) | 280.82M | 251.08M | 172.56M | 213.05M | 330.85M | 115.56M | 107.02M | 104.8M | 135.9M | 87.24M | 31.43M | 88.36M | 72.69M | 31.18M | 52.45M | 57.01M | 5.21M | -12.46M | 62.91M | 52.34M | 57.43M | 38.62M | 5.4M | -22.9M | -98.25M | 31.01M | 30.81M | -66.4M | 5.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 6.3M | 5.68M | 4.27M | 4.93M | 5.24M | 2.39M | 2.31M | 2.73M | 3.01M | 3.61M | 2M | 0 | 0 | 0 | -510K | -520K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.29M | 3.22M | 2M | 2M |
| EPS (Diluted) | 5.22 | 4.60 | 3.23 | 3.95 | 5.98 | 2.09 | 1.90 | 1.83 | 2.38 | 1.47 | 0.58 | 1.76 | 1.48 | 0.70 | 1.15 | 1.27 | 0.12 | -0.23 | 1.46 | 1.24 | 1.32 | 0.90 | 0.13 | -0.63 | -2.62 | 0.81 | 0.82 | -2.37 | 0.23 |
| EPS Growth % | 13.48% | 42.41% | -18.23% | -33.95% | 186.12% | 10% | 3.83% | -23.11% | 61.9% | 153.45% | -67.05% | 18.92% | 111.43% | -39.13% | -9.45% | 958.33% | 152.17% | -115.75% | 17.74% | -6.06% | 46.67% | 592.31% | 120.63% | 75.95% | -423.46% | -1.22% | 134.6% | -1130.43% | - |
| EPS (Basic) | 5.33 | 4.69 | 3.25 | 3.98 | 6.04 | 2.11 | 1.91 | 1.86 | 2.41 | 1.48 | 0.58 | 1.78 | 1.51 | 0.71 | 1.17 | 1.30 | 0.12 | -0.23 | 1.50 | 1.40 | 1.49 | 1.00 | 0.14 | -0.63 | -2.62 | 0.83 | 0.85 | -2.37 | 0.24 |
| Diluted Shares Outstanding | 52.52M | 52.81M | 51.43M | 51.88M | 53.4M | 53.41M | 54.77M | 56.1M | 56.25M | 56.9M | 52.93M | 49.77M | 49.15M | 47.88M | 47.26M | 46.28M | 45.46M | 43.52M | 45.53M | 46.94M | 47.27M | 46.23M | 40.31M | 37.58M | 37.55M | 38.48M | 37.68M | 28.02M | 23.84M |
| Basic Shares Outstanding | 51.43M | 51.78M | 51.04M | 51.48M | 52.81M | 52.93M | 54.34M | 55.31M | 55.43M | 56.2M | 52.37M | 49.05M | 48.16M | 47.22M | 46.4M | 45.2M | 44.41M | 43.52M | 44.01M | 39.77M | 39.89M | 38.52M | 37.47M | 37.58M | 37.55M | 37.27M | 36.09M | 28.02M | 21.89M |
| Dividend Payout Ratio | 37.72% | 33.99% | 32.15% | 15.74% | 8.21% | 19.66% | 21.72% | 22.85% | 17.16% | 27.7% | 70.63% | 5.78% | 2.92% | - | - | 1.02% | 18.08% | - | 4.41% | 4.38% | 4.49% | 3.82% | - | - | - | - | - | - | - |
Cyclical white-collar hiring sensitivity
According to recent financial disclosures, Korn Ferry achieved a 6.7% revenue growth rate in 2026Q4, marking a stabilization after several quarters of negative year-over-year performance, suggesting that the firm is successfully navigating the normalization of the post-pandemic hiring environment through its diversified consulting and digital service offerings.
The return to positive growth appears to be driven by the firm's ability to pivot away from purely transactional search assignments toward more stable, project-based consulting engagements. Investors should monitor whether this trajectory can be sustained if corporate CAPEX budgets remain constrained in the coming fiscal year.
As reported in quarterly filings, Korn Ferry maintains a robust gross margin profile, typically hovering near 88%, which highlights the firm's unique accounting treatment of professional compensation and its ability to command premium pricing for its integrated organizational design and talent assessment methodologies compared to traditional staffing peers.
The significant margin compression observed in 2026Q4 warrants further investigation, as it may indicate temporary inefficiencies or shifts in service mix that deviate from historical norms. Sustained profitability will likely depend on the firm's ability to maintain high consultant utilization rates despite broader macroeconomic headwinds.
Based on the provided income statement data, operating income has fluctuated significantly, with the 2026Q4 operating margin of 13.2% suggesting that the firm is struggling to scale its SG&A expenses efficiently in proportion to the recent modest recovery in top-line revenue growth across its core business segments.
The firm's high-variable cost structure, primarily composed of human capital, implies that operating leverage is highly sensitive to headcount management and consultant productivity. If revenue growth fails to outpace the growth in operating expenses, the firm may face continued pressure on its bottom-line profitability in future quarters.
Analysis of the income statement reveals that stock-based compensation remains a consistent expense, averaging over $11 million per quarter, which suggests that management is utilizing equity-based incentives to retain key talent, thereby impacting the quality of reported net income and diluting earnings per share for shareholders.
While these expenses are a standard component of professional services compensation, the consistent nature of these charges suggests they should be treated as a recurring operational cost rather than a one-time item. Investors should carefully assess the impact of this dilution on long-term shareholder value creation.
Despite the firm's diversification efforts, the income statement data indicates that Korn Ferry remains highly sensitive to the US white-collar hiring cycle, with recent performance suggesting that any further cooling in corporate sentiment could disproportionately impact the high-margin Executive Search segment and compress overall operating margins.
Short-sellers may focus on the firm's heavy geographic concentration in the US and the potential for a 'white-collar recession' to undermine the stability of the consulting and digital segments. The reliance on discretionary corporate spending makes the current valuation appear vulnerable to any significant downturn in global economic activity.
Quick answers to the most common questions about buying KFY stock.
For fiscal year 2026, Korn Ferry (KFY) reported total revenue of $2.94B. This represents a 876.3% increase compared to $301.0M in 1998.
Korn Ferry (KFY) is profitable, generating $277.4M in net income for the fiscal year ending 2026 with a net profit margin of 9.4%.
Korn Ferry (KFY) reported an operating income of $374.7M, resulting in an operating profit margin of 12.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Korn Ferry (KFY) generated $752.5M in gross profit for the year, representing a gross profit margin of 25.6%. This demonstrates the company's core pricing power and production efficiency.