Korn Ferry Q3 Revenue Climbs 7% to $725M, Net Income Up 12%

Korn Ferry (NYSE: KFY), a global organizational consulting firm, reported revenue of $725.04 million for the quarter ending January 31, 2026, up 7.2% from $676.54 million in the same period last year. Net income rose 11.7% to $65.27 million from $58.41 million. Read more earnings reports.

For the nine months ending January 31, 2026, total revenue reached $2.17 billion, a 6.3% increase from $2.04 billion in the prior-year period. Net income for the nine-month period climbed to $204.30 million from $181.82 million, a gain of 12.4%.

Operating income for the third quarter came in at $91.02 million, compared to $78.23 million a year earlier. The company reported operating income of $273.22 million for the nine-month period, up from $241.76 million.

Revenue by Segment

The company's largest segment posted quarterly revenue of $226.09 million, up 13.7% from $198.83 million. Other major segments reported $135.95 million (up 7.6%), $121.53 million (up 2.7%), $103.84 million (up 5.5%), and $88.66 million (up 5.6%).

For the nine-month period, the corresponding segments generated $678.97 million, $408.31 million, $358.08 million, $313.64 million, and $257.99 million in revenue.

Expenses and Profitability

Labor and related expenses, the company's largest cost category, totaled $456.82 million for the quarter, up from $425.32 million in the prior-year quarter. For the nine months, labor costs reached $1.38 billion compared to $1.31 billion.

The company recorded income tax expense of $26.68 million for the quarter, versus $22.80 million a year earlier. For the nine-month period, tax expense was $78.58 million, up from $70.05 million.

Diluted earnings per share for the third quarter were $1.23, compared to $1.10 in the year-ago quarter. For the nine months, diluted EPS stood at $3.84 versus $3.40.

Balance Sheet

Total assets as of January 31, 2026 were $3.95 billion, up from $3.86 billion at the end of the prior fiscal year on April 30, 2025. Cash and cash equivalents declined to $938.37 million from $1.01 billion.

Stockholders' equity rose to $2.00 billion from $1.87 billion. Total liabilities decreased to $1.94 billion from $1.99 billion. Long-term debt stood at $398.35 million, essentially flat from $397.74 million.

Cash Flow

Cash from operations for the nine months was $117.51 million, compared to $108.55 million in the prior-year period. Cash used in investing activities totaled $73.67 million, down from $112.68 million. Cash used in financing activities was $130.97 million versus $146.45 million.