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    Korn Ferry (KFY) EPS Strength Reinforces Profitability Narrative Despite Modest Revenue Growth Outlook

    Simply Wall St·12/10/2025 03:26:44
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    Korn Ferry (KFY) just posted Q2 2026 results with revenue of $721.7 million and basic EPS of $1.40, setting the tone for another data heavy earnings season for the professional services firm. The company has seen revenue move from $674.4 million in Q2 2025 to $721.7 million in Q2 2026, while EPS has stepped up from $1.16 to $1.40 over the same period, underscoring steady profit generation. With trailing 12 month net margin nudging higher and earnings power building, investors are likely to focus on how durable these margins look across the cycle.

    See our full analysis for Korn Ferry.

    With the latest numbers on the table, the next step is to see how this earnings profile lines up with the main narratives around Korn Ferry’s growth, risk, and margin trajectory and where those stories might need a rethink.

    See what the community is saying about Korn Ferry

    NYSE:KFY Revenue & Expenses Breakdown as at Dec 2025
    NYSE:KFY Revenue & Expenses Breakdown as at Dec 2025

    TTM EPS Tops $5 With Margins Near 9 Percent

    • Over the last twelve months, basic EPS reached about $5.01 while net income was $258.5 million on $2.8 billion of revenue, lining up with a net margin of 9.2 percent versus 9.0 percent a year earlier.
    • Consensus narrative highlights big transformation and workforce projects as key drivers of future profit growth, and the current 7.9 percent five year earnings growth alongside the forecast 12.9 percent annual earnings growth tests that view:
      • On one hand, the move from $243.6 million to $258.5 million of trailing twelve month net income supports the idea that larger, stickier engagements are already helping earnings trend upward.
      • On the other hand, margins are improving only modestly, so investors still have to decide whether the expected rise in profit margin from 8.9 percent to 10.7 percent over three years is realistic given the recent pace.

    Slower 3 Point 9 Percent Revenue Growth Puts Focus On Execution

    • Revenue is expected to grow about 3.9 percent per year versus a 10.7 percent forecast for the broader US market, even though trailing twelve month revenue is already a sizable $2.8 billion.
    • Consensus narrative leans on expansion into larger addressable markets and more cross solution referrals to keep the top line moving, and the relatively modest revenue growth expectations frame that as a measured rather than aggressive bet:
      • Analysts are assuming revenue of roughly $3.1 billion by around 2028, which would mean only mid single digit annual growth from today’s $2.8 billion base despite the new strategic transformation and AI offerings.
      • That gap between the 3.9 percent revenue growth forecast and the higher market wide 10.7 percent expectation is exactly where skeptics argue competition from big consulting firms could cap how much share Korn Ferry can realistically take.
    Over the last few years, Korn Ferry has been quietly building an earnings story that bulls say has not yet been fully recognised in the share price. 🐂 Korn Ferry Bull Case

    Value Case Leans On DCF Fair Value And 13 Point 7 Times P E

    • At a share price of $67.57, the stock trades on a 13.7 times P E and at a big discount to its $145.22 DCF fair value, while the Professional Services industry and peers sit at 24.9 times and 31.1 times respectively.
    • Consensus narrative suggests that steady margin improvement and technology investments can justify higher multiples over time, and the current valuation plus dividend yield of 2.84 percent give numbers for both sides of that debate:
      • Supporters point to trailing twelve month EPS of about $5.01 and five year earnings growth of 7.9 percent as evidence that the business has already earned the right to trade nearer long run industry P E levels.
      • More cautious investors may note that forecast earnings growth of 12.9 percent still lags the wider US market’s 16.2 percent, which could explain why the market is not yet willing to close the gap to DCF fair value.

    Next Steps

    To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Korn Ferry on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

    See the numbers differently? Take a couple of minutes to test your own view against the data, shape your story, and Do it your way.

    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.

    See What Else Is Out There

    Korn Ferry’s more modest revenue growth outlook and slower forecast earnings expansion versus the wider US market highlight its limited high growth potential from here.

    If that ceiling on future upside feels restrictive, use our high growth potential stocks screener (46 results) today to quickly find established businesses expected to grow earnings far faster over the next few years.

    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.