Korn Ferry (KFY) Stock Eyes AMS Execution As Recurring Revenue Builds

Korn Ferry (KFY) reported Q1 FY2027 revenue growth of 7% to $756.5M, with Workforce Solutions and Search segments up 11% and 10% respectively. Adjusted EPS rose 9% to $1.43. The company acquired AMS for $1.2B, but APAC revenue lagged and guidance fell below estimates, causing premarket share declines. Hedge fund interest increased slightly, with BlackRock as the largest institutional investor.

Korn Ferry has completed its $1.1 billion acquisition of AMS, a UK-based RPO and MSP firm. AMS generates $650 million in annual revenue and holds $1.5 billion in future contracts. The deal combines equity, cash, and Korn Ferry shares, expanding Korn Ferry's talent solutions and AI capabilities. According to Korn Ferry, the acquisition supports a shift toward long-term workforce advisory services.

Korn Ferry reported six consecutive quarters of revenue growth, driven by global strength and the acquisition of AMS, which expands its talent consulting capabilities. The company maintained 17% adjusted EBITDA margins and expects Q2 2027 revenue of $860M-$878M, including AMS contributions. Management anticipates long-term growth of 10-12%, with a focus on debt reduction and potential share buybacks. Geopolitical risks and economic uncertainty are noted as challenges.

Korn Ferry (KFY) completed its acquisition of AMS, a recruitment process outsourcing provider, which management says expands its contingent workforce and early career solutions. The workforce solutions segment, including RPO and interim services, drove strong performance. AMS's recurring, multi-year contracts are expected to enhance revenue stability. Management targets $40 million in incremental EBITDA from AMS within a year. Integration risks and macroeconomic uncertainty were noted. KFY stock

Korn Ferry (KFY) reported Q1 2027 earnings with fee revenue of $756.5M, up 7% YoY, and adjusted EBITDA of $128.2M, up 7% YoY. Adjusted EPS grew 9% to $1.43. Backlog increased 14% to $1.92B. The company completed the AMS acquisition, expecting $40M in incremental EBITDA. Management guided Q2 fee revenue to $860M-$878M and adjusted EPS to $1.30-$1.40. CEO Burnison highlighted growth in search and workforce solutions, and integration of AMS.

Korn Ferry (KFY) reported Q1 2027 earnings, highlighting record growth driven by the AMS acquisition. Revenue grew, but adjusted EBITDA margin remained flat at 17%. The company faces challenges in the EMEA and APAC regions due to macroeconomic factors. Integration of AMS is ongoing, with full platform integration expected by May 2027. Guidance for Q2 2027 includes lower adjusted diluted EPS due to acquisition-related expenses. Management expressed confidence in achieving cost synergies and maint