FTI Consulting (NYSE:FCN) Announces Earnings Results

Key Points

• Record third-quarter results: FTI Consulting reported $3.84 in adjusted EPS, well above the $2.74 consensus estimate, while revenue rose 5.9% year over year to $1.013 billion. Adjusted EBITDA increased 17.7% to $153.7 million, with growth across all five segments.
• Raised adjusted outlook: Management increased 2026 adjusted EPS guidance to $9.50–$10.00 from $9.10–$9.70, reaffirmed revenue guidance of $3.94–$4.10 billion, and expects staffing and real-estate actions to deliver roughly $80 million in annualized savings.
• Mixed outlook and market response: FTI cautioned that fourth-quarter results will decline seasonally from an unusually strong third quarter, while GAAP EPS guidance was reduced because of special charges and litigation expenses. Shares rose 12.6% after the announcement, despite analysts maintaining an overall “Hold” view.

FTI Consulting (NYSE:FCN - Get Free Report) announced its quarterly earnings data on Thursday. The business services provider reported $3.84 EPS for the quarter, beating analysts' consensus estimates of $2.74 by $1.10, FiscalAI reports. The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $1.01 billion. FTI Consulting had a return on equity of 15.91% and a net margin of 6.44%. The business's quarterly revenue was up 5.9% compared to the same quarter last year. During the same period last year, the company earned $2.60 EPS.

Here are the key takeaways from FTI Consulting's conference call:

• Record third-quarter performance: Revenue surpassed $1 billion for the first time, all five segments grew, adjusted EBITDA increased 18% to $153.7 million, and adjusted EPS reached a record $3.84.
• Management said the prior drag from Compass Lexecon has ended, with the economics segment returning to year-over-year growth and contributing to earnings. However, executives cautioned that a return to historical profitability may take several years.
• The company raised its 2026 adjusted EPS guidance to $9.50-$10.00 from $9.10-$9.70, while reaffirming revenue guidance of $3.94 billion-$4.10 billion. Targeted staffing and real-estate actions are expected to generate approximately $80 million in annualized savings.
• Management expects fourth-quarter results to decline seasonally from the unusually strong third quarter, which benefited from record success fees, favorable tax items, and other one-time factors. Restructuring, M&A, and regulatory activity remain subdued, and FLC faces lower U.S. enforcement activity and the completion of large engagements.
• The company repurchased $79.4 million of shares in the quarter, paid down $168 million of debt, and retained $264.7 million of repurchase authorization, supporting continued capital-allocation flexibility.

FTI Consulting Trading Up 12.6%

Shares of NYSE:FCN traded up $19.99 during mid-day trading on Thursday, reaching $178.58. The stock had a trading volume of 900,774 shares, compared to its average volume of 437,272. The firm has a 50 day simple moving average of $146.04 and a two-hundred day simple moving average of $159.88. FTI Consulting has a twelve month low of $129.12 and a twelve month high of $189.30. The firm has a market cap of $4.93 billion, a PE ratio of 21.72 and a beta of -0.06. The company has a current ratio of 2.03, a quick ratio of 2.03 and a debt-to-equity ratio of 0.76.

Key Headlines Impacting FTI Consulting

Here are the key news stories impacting FTI Consulting this week:

• Positive Sentiment: FTI reported record third-quarter revenue of $1.013 billion, up 5.9% year over year and broadly in line with analyst estimates. Growth was generated across all five business segments, led by Economic Consulting, Technology and Strategic Communications. FTI Consulting third-quarter earnings release
• Positive Sentiment: Adjusted EPS reached a record $3.84, up 48% from $2.60 a year ago and well above consensus estimates ranging from $2.65 to $2.74. Adjusted EBITDA increased 17.7% to $153.7 million, with the margin expanding to 15.2% from 13.7%. FTI Consulting beats third-quarter estimates
• Positive Sentiment: Management reaffirmed 2026 revenue guidance of $3.94 billion to $4.10 billion and raised adjusted EPS guidance to $9.50-$10.00, up from $9.10-$9.70. Staffing and real-estate actions are expected to produce approximately $80 million in annualized savings.
• Positive Sentiment: FTI repurchased 523,588 shares for $79.4 million during the quarter, supporting per-share results and signaling continued capital-return capacity.
• Neutral Sentiment: The company added former FBI cyber-response leader Justin Vallese to its cybersecurity practice, potentially strengthening its capabilities, although the immediate financial impact is unclear. Justin Vallese joins FTI Consulting
• Negative Sentiment: GAAP net income fell to $63.4 million from $82.8 million, while diluted EPS declined to $2.35. A $46 million staffing-related special charge, higher expenses and increased interest costs were the primary factors.
• Negative Sentiment: FTI reduced 2026 GAAP EPS guidance to $7.55-$8.05 from $8.70-$9.30, reflecting approximately $53 million of expected full-year special charges and litigation-related expenses. Debt also increased year over year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Weiss Ratings raised FTI Consulting from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday. Truist Financial dropped their price objective on FTI Consulting from $180.00 to $158.00 and set a "hold" rating for the company in a report on Friday, October 23rd. Two equities research analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $163.50.

About FTI Consulting

FTI Consulting, Inc is a global business advisory firm that helps organizations address complex financial, legal, operational and reputational challenges. The company provides independent expertise to corporations, law firms, financial institutions, government agencies and other organizations involved in major disputes, transactions, investigations, restructurings and regulatory matters.

FTI Consulting operates through several practice areas, including Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology and Strategic Communications.

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