News report 📈 Stocks 🌍 United States

Korn Ferry Reports 7% Revenue Growth and Raises Guidance Following AMS Deal

Korn Ferry extends its growth streak to six quarters, reporting solid Q1 earnings and an optimistic outlook driven by the strategic AMS acquisition and a robust $3.5 billion backlog.

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Korn Ferry reported strong Q1 fiscal 2027 fee revenue growth of 7% and raised guidance following the AMS acquisition, with positive commentary on expansion and backlog.

🎯 Key Takeaways

  • Fee revenue grew 7% year-over-year to $756 million, marking six consecutive quarters of top-line expansion.
  • The AMS acquisition significantly scales the firm, contributing to a combined $3.5 billion backlog and enhanced technology-enabled workforce capabilities.
  • Management raised Q2 guidance, projecting fee revenue between $860 million and $878 million as they prioritize debt reduction.

📝 Executive Summary

Korn Ferry posted strong Q1 fiscal 2027 results, with fee revenue climbing 7% to $756 million and adjusted EPS rising 9% to $1.43. The company successfully integrated the AMS acquisition, expanding its global workforce to 17,000 employees and boosting its total backlog to $3.5 billion.

❓ FAQ

How does the AMS acquisition impact Korn Ferry's business model?

The AMS transaction adds operational capabilities in technology-enabled talent solutions, contingent workforce services, and campus recruiting, shifting the company's growth mix toward a 50/50 split between organic and inorganic sources.