Korn Ferry Poised for Upside From Search Strength, Digital Expansion, Truist Say

MT Newswires Live
Nov 26

Korn Ferry (KFY) is seeing positive momentum from a competitor's recent acquisition and is poised for strong performance in its high-margin Digital and Executive Search segments, Truist Securities said in a Tuesday note.

Truist now expects fiscal Q2 Executive Search revenue to be flat quarter over quarter, an improvement from its earlier forecast of a 2% decline, following better-than-expected results from rival Heidrick & Struggles.

The firm raised its 2026 adjusted earnings-per-share estimate to $5.24 from $5.12 and increased its 2027 EPS forecast to $5.83, citing improving search revenue trends and benefits from the company's diversified portfolio. Analysts surveyed by FactSet expect $5.24 and $5.71, respectively.

According to the note, Truist expects Korn Ferry's 2026 Talent Suite rollout to further strengthen growth in the company's higher-margin Digital unit, which already generates significant recurring revenue and strong EBITDA margins.

The firm maintained its buy rating on the stock with an $88 price target.

Shares were up 3.6% in Tuesday afternoon trading.

Price: 66.62, Change: +2.24, Percent Change: +3.47

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