The Bull Case For Korn Ferry (KFY) Could Change Following Strong Q2 Results And Referral-Driven Growth

• Korn Ferry recently reported past second-quarter fiscal 2026 results, with revenue rising to US$729.8 million and net income to US$72.4 million, alongside confirming third-quarter guidance and maintaining a quarterly dividend of US$0.48 per share.
• Management highlighted the ongoing success of its “We Are Korn Ferry” strategy, with cross-solution referrals contributing nearly 28% of fee revenue, underscoring deeper client engagement and stronger internal collaboration.
• Next, we’ll examine how this referral-driven growth and upbeat earnings guidance may influence Korn Ferry’s existing investment narrative.

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Korn Ferry Investment Narrative Recap

To own Korn Ferry, you need to believe its shift from pure executive search to broader talent and organizational consulting can keep driving resilient fee revenue, even in a tough consulting market. The latest quarter’s higher revenue and earnings, together with upbeat third quarter guidance, support that narrative in the near term, while the biggest risk remains that a weak macro backdrop for consulting could still weigh on pricing and large-project conversion.

The reaffirmed outlook for third quarter fiscal 2026, with expected fee revenue of US$680 million to US$694 million and diluted EPS of US$1.15 to US$1.21, is particularly relevant here because it connects directly to the referral driven growth story. If Korn Ferry can keep turning cross solution engagement into consistent earnings within that guided range, it could help offset some of the macro pressures highlighted earlier.

Yet, even with this solid guidance, investors should be aware of how prolonged softness in consulting demand could...

Read the full narrative on Korn Ferry (it's free!)

Korn Ferry's narrative projects $3.1 billion revenue and $331.4 million earnings by 2028.

Uncover how Korn Ferry's forecasts yield a $81.00 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span roughly US$81 to over US$2,900 per share, showing just how far apart individual views can be. As you weigh those opinions against the reliance on large transformation and workforce projects as a key growth driver, it becomes even more important to compare several perspectives on how Korn Ferry’s business might perform over time.

Explore 4 other fair value estimates on Korn Ferry - why the stock might be worth just $81.00!

Build Your Own Korn Ferry Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Korn Ferry research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Korn Ferry research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Korn Ferry's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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