Question · Q1 2026
Tobey O'Brien Sommer asked about client sentiment amidst economic uncertainty, recent BLS job creation revisions, and potential Fed rate cuts. Sommer also inquired about Korn Ferry's participation in M&A and divestiture consulting services, and the firm's capacity to handle an appreciable uptick in demand without impacting margins.
Answer
CEO Gary Burnison noted varying client optimism by region, with strong performance in Europe and Asia, but challenges in the Americas due to pricing power issues and escalating costs. He highlighted AI's long-term impact on workforce strategy and strong activity in industrial and private equity sectors. Burnison confirmed participation in some M&A/divestiture consulting, particularly on the private equity side. Regarding capacity, Burnison stated there is existing capacity, but a significant economic turnaround requires substantial Fed rate cuts. CFO Robert Rozek added that AI/GenAI initiatives are expected to help manage any rapid rebound in demand.