Korn Ferry Target Cut to $75 on Compressed Multiples Despite 11% Demand Growth
Truist retained its Buy rating on Korn Ferry while cutting its price target to $75 from $88, citing lower industry multiples despite 11% constant-currency growth in executive search demand. Korn Ferry’s Q3 FY2026 revenue rose 7.2% to $725.0 million and adjusted EPS beat estimates at $1.28.
1. Price Target Revision
Truist trimmed its price target on Korn Ferry to $75 from $88 while keeping a Buy rating. The move reflects valuation recalibration as staffing and consulting multiples compress in the current market environment.
2. Q3 FY2026 Performance
Korn Ferry reported Q3 FY2026 revenue of $725.04 million, up 7.2% year-over-year, topping the $695.1 million estimate. Adjusted diluted EPS came in at $1.28, beating the $1.24 consensus and underscoring operational resilience.
3. Valuation and Analyst Consensus
The stock trades at approximately 12x trailing earnings, below its consensus price target of $79. Shares are down 5.1% year-to-date, reflecting broader market caution toward human capital services.
4. Industry Context and Outlook
Executive search demand grew 11% on a constant-currency basis, indicating sustained end-market strength. While multiples remain under pressure, the resilient growth in core services supports the firm’s long-term outlook.