What Happened?
Shares of organizational consulting firm Korn Ferry (NYSE: KFY) jumped 4.1% in the afternoon session after it reported third-quarter 2025 results that surpassed analyst expectations for both revenue and profit. The company announced revenue of $729.8 million, a 7% increase from the previous year, which beat forecasts. Adjusted earnings per share came in at $1.33, up nearly 10% year-over-year and slightly ahead of consensus estimates. However, the positive results were tempered by the company's guidance for the upcoming fourth quarter. Both its revenue and earnings per share forecasts for the next quarter fell short of Wall Street's expectations, presenting a mixed picture for investors.
The shares closed the day at $67.61, up 4.1% from previous close.
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What Is The Market Telling Us
Korn Ferry’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 18 days ago when the stock gained 3.7% on the news that comments from a key Federal Reserve official hinted at a potential interest rate cut in December. John Williams, president of the Federal Reserve Bank of New York, signaled he was open to lowering the fed funds rate—the key interest rate that banks charge each other for overnight loans—to support the job market. Speaking at an event, Williams stated that he sees “room for a further adjustment” for interest rates, which immediately shifted market expectations. Following his remarks, the perceived likelihood of an interest rate cut at the Federal Reserve's December meeting flipped from unlikely to more likely than not. The prospect of lower borrowing costs sent a wave of optimism through the markets, leading to a rally in major indices like the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite.
Korn Ferry is up 1.2% since the beginning of the year, but at $67.60 per share, it is still trading 11.6% below its 52-week high of $76.46 from August 2025. Investors who bought $1,000 worth of Korn Ferry’s shares 5 years ago would now be looking at an investment worth $1,631.
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