Q2 2026 Korn Ferry Earnings Call Transcript
Key Points
- Korn Ferry (KFY) posted its fourth consecutive quarter of accelerating growth, demonstrating the success of its strategic transformation.
- The company's Executive Search fee revenue grew 10%, marking the sixth consecutive quarter of year-over-year growth.
- Estimated remaining fees under existing contracts increased to $1.84 billion, up 20% year-over-year, indicating strong new business in RPO.
- The company's business referrals grew to 27.6% of consolidated fee revenue, showing progress in its 'We Are Korn Ferry' strategy.
- Korn Ferry (KFY) returned almost $70 million to shareholders through repurchases and dividends, reflecting a balanced capital allocation strategy.
- The company's APAC fee revenue was flat, with moderate growth in some areas offset by declines in others.
- Korn Ferry (KFY) expects a seasonal slowdown in the third quarter due to the year-end holidays, impacting overall business performance.
- Despite strong bill rates, consulting margins remained flat, indicating potential cost pressures in delivering larger engagements.
- The digital segment experienced a decline, attributed to a strategic reduction in the number of sellers and delayed transformational deals.
- The company's guidance for the next quarter implies only modest growth, reflecting ongoing uncertainties in the macroeconomic environment.
Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry Second 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 company's
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