Q1 2026 Korn Ferry Earnings Call Transcript
Key Points
- Korn Ferry (KFY) reported a 5% year-over-year growth in consolidated fee revenue, reaching $709 million, marking the second consecutive quarter of positive growth.
- The company's Marquee & Diamond accounts generated almost 40% of revenue, with a 7% fee revenue growth year over year.
- Executive search fee revenue grew 8% in the quarter, marking the fifth consecutive quarter of year-over-year growth in this area.
- Digital subscription and licensed new business grew 10% year over year, contributing to 39% of total digital new business, adding stability and predictability to the revenue base.
- Korn Ferry (KFY) is on track for the market launch of its new Talent Suite platform, which is expected to enhance client insights and decision-making capabilities.
- The global business environment remains uncertain, with unresolved tariff issues and geopolitical tensions affecting business sentiment.
- Fee revenue in the Americas was down 2% year over year, with lower demand in consulting, digital, and professional search and interim.
- Despite growth in other regions, the economic environment in the Americas remains challenging, impacting consulting solutions.
- The guidance for the second quarter of fiscal '26 suggests a potential slight dip in revenue at the midpoint, reflecting conservatism due to ongoing uncertainties.
- The company is experiencing a labor recession, with natural attrition and non-replacement of hires affecting workforce dynamics.
Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry first quarter fiscal year 2026 conference call. (Operator Instructions) As a reminder, this conference call is being recorded for replay purposes. We have also made available in the Investor Relations section of our website at kornferry.com a copy of the financial presentation that we will be reviewing with you today.
Before I turn the call over to your host, Mr. Gary Burnison, let me first read a cautionary statement to investors. Certain statements made in the call today, such as those relating to future performance, plans and goals constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, investors are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, which are beyond the
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