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Investing.com - Goldman Sachs has reiterated its Buy rating and $85.00 price target on Korn/Ferry (NYSE:KFY) following the company’s fiscal first-quarter 2026 earnings release. According to InvestingPro analysis, the stock appears undervalued, with strong financial health metrics and a P/E ratio of 15.5x.
The talent acquisition firm reported revenue and earnings per share that exceeded FactSet consensus estimates, while providing fiscal second-quarter 2026 EPS guidance in line with Street expectations.
Korn/Ferry’s total fee revenue increased 4% year-over-year on a constant currency basis in the first quarter, maintaining the same growth rate as the previous quarter. New business excluding RPO grew 3% year-over-year, showing a slight deceleration from 5% growth in the fiscal third quarter.
EBITDA margins expanded by 50 basis points year-over-year to reach 17.0% in the first quarter, demonstrating improved profitability for the firm.
The company’s earnings call is expected to address new business trends across its service lines, the macroeconomic outlook, cross-selling initiatives, and cost reduction strategies amid the current economic environment.
In other recent news, Korn Ferry reported strong fiscal fourth-quarter results for 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $1.32, beating the forecast of $1.26, while its revenue reached $712 million, exceeding the anticipated $690.07 million. Additionally, Korn Ferry announced a quarterly cash dividend of $0.48 per share, which is part of its balanced capital allocation strategy. In a significant financial move, Korn Ferry entered into an $850 million credit agreement with Wells Fargo and other lenders, providing a five-year senior secured revolving credit facility. The agreement allows for potential increases in the total revolving commitments. Truist Securities responded to these developments by raising its price target for Korn Ferry to $88.00 from $80.00, maintaining a Buy rating on the stock. This decision was influenced by the company’s strong performance and resilience against tariffs. These recent developments reflect Korn Ferry’s confidence in its business strength and operational discipline.
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