Korn Ferry (NYSE:KFY) reported a strong third quarter for fiscal 2026, with fee revenue reaching $717.4 million as the global consulting firm successfully leveraged high-growth digital services and long-term contracts to offset broader economic shifts.
The Los Angeles-based firm announced on March 9, 2026, that total fee revenue rose 7% year-over-year, supported by expansion across all business segments.
Profitability also outpaced revenue growth, with net income attributable to Korn Ferry climbing 12% to achieve a 9.1% margin.
Adjusted EBITDA for the period rose 8% to $123.4 million, maintaining a robust margin of 17.2%.
A key indicator of future stability was the 11% year-over-year increase in estimated remaining fees under existing contracts, which now stands at $1.9 billion.
This backlog was led by the Digital segment, which saw a 16% jump, followed by a 12% increase in Consulting and a 10% rise in Recruitment Process Outsourcing (RPO).
This shift toward recurring, contract-based revenue reflects Korn Ferry’s multi-year transition from a traditional executive search firm into a diversified organizational consultancy.
Diluted earnings per share for the third quarter came in at $1.23, while adjusted diluted earnings per share reached $1.28, representing an 8% increase over the previous year.
Management attributed the margin expansion to disciplined cost management and a higher mix of technology-enabled services.
The company ended the quarter with a strong liquidity position, allowing for continued investment in its proprietary AI-driven talent platforms and the potential for opportunistic acquisitions in the professional services space.