Korn Ferry (KFY) shares climbed Tuesday after the organizational consulting firm reported fiscal fourth-quarter results that beat Wall Street's expectations on both the top and bottom lines. The company's revenue came in at $768.3 million, up 6.7% from a year ago and well above the $743.3 million analysts were looking for. Fee revenue — the core metric here — rose 7% to $759.8 million, or 5% on a constant-currency basis.

Earnings looked good too. GAAP diluted earnings per share hit $1.39, up from $1.21 last year, while adjusted diluted EPS climbed to $1.40, topping the consensus estimate of $1.38. Net income attributable to Korn Ferry rose to $73.1 million from $64.2 million, and adjusted EBITDA increased to $129.5 million from $121.1 million.

CEO Gary D. Burnison sounded pleased, and not just because the numbers were nice. “I am very pleased with our quarterly performance. This marks our fifth consecutive quarter of top-line growth, underscoring the strength of our strategy and the increasing relevance of our solutions – all amid an uneven economic environment,” he said.

For the full fiscal year 2026, total revenue increased 6.4% to $2.94 billion, with fee revenue up 7% to $2.91 billion. GAAP diluted EPS rose to $5.22 from $4.60, and adjusted diluted EPS increased to $5.28 from $4.88.

Digging into the segments, Executive Search fee revenue rose 7% to $242.0 million, and its adjusted EBITDA jumped 18% to $64.0 million. Professional Search & Interim posted a 14% increase in fee revenue to $149.1 million, driven by growth in Permanent Placement and Interim services. Consulting fee revenue rose 7% to $181.9 million. Digital fee revenue slipped 3% to $89.3 million, while RPO (Recruitment Process Outsourcing) fee revenue increased 5% to $97.6 million, supported by new client wins in North America.

One encouraging sign: the backlog of estimated remaining fees under existing contracts grew 10% to $1.88 billion, suggesting future revenue visibility is solid. During the quarter, Korn Ferry repurchased 1.24 million shares for $78.8 million and paid $28.3 million in dividends. The board also declared a quarterly cash dividend of 55 cents per share, payable July 31, 2026, to shareholders of record on July 6, 2026. The company ended the quarter with $1.10 billion in cash and equivalents and $398.6 million in long-term debt.

Looking ahead to fiscal 2027, Korn Ferry expects first-quarter fee revenue between $725 million and $745 million. It forecast GAAP diluted EPS of $1.32 to $1.38, compared with the analyst estimate of $1.33. The outlook assumes no material adverse impact from the recent Middle East conflict and stable geopolitical, economic, financial market and foreign exchange conditions.

Korn Ferry shares were up 5.50% at $71.49 at the time of publication Tuesday.