FTI Consulting (NYSE:FCN) Posts Quarterly Earnings Results, Misses Expectations By $0.17 EPS

Key Points

• FTI reported Q1 EPS of $1.90, missing consensus by $0.17 while revenue rose 9.5% year‑over‑year, and management maintained FY2026 guidance of $8.90–$9.60 EPS and $3.94–$4.10B in revenue.
• Segment mix drove top‑line strength: Corporate Finance (+19.2%) and Strategic Communications (record +18.4%) led growth, while Economic Consulting/Compass Lexecon remained a drag and will take multiple quarters to restore profitability.
• Profitability weakened as adjusted EBITDA fell to $96.8M (9.8% margin) and net income declined to $57.6M, pressured by higher direct costs, elevated SG&A (expected to be ~ $60M higher YoY with Q2 as the peak), higher interest expense and a higher effective tax rate; the company repurchased $126.8M of stock in Q1 with ~$354.9M remaining.

FTI Consulting (NYSE:FCN - Get Free Report) announced its quarterly earnings data on Thursday. The business services provider reported $1.90 EPS for the quarter, missing the consensus estimate of $2.07 by ($0.17), Briefing.com reports. FTI Consulting had a net margin of 7.15% and a return on equity of 15.42%. During the same quarter last year, the firm posted $2.29 earnings per share. FTI Consulting's revenue for the quarter was up 9.5% compared to the same quarter last year. FTI Consulting updated its FY 2026 guidance to 8.900-9.600 EPS.

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

• Q1 revenue of $983.3 million (+9.5% YoY; +6.8% ex‑FX) was driven by strength in Corporate Finance, Strategic Communications and Technology, signaling continued top‑line momentum.
• Profitability weakened as adjusted EBITDA fell to $96.8 million (9.8% margin) and net income declined to $57.6 million, pressured by higher direct costs, increased SG&A, higher interest expense and a higher effective tax rate (26.6%).
• Corporate Finance delivered standout results (revenues $409.5 million, +19.2%) and Strategic Communications posted a record quarter (+18.4%), while Technology also grew—underscoring strength in event‑driven, higher‑margin offerings.
• Economic Consulting / Compass Lexecon remained a drag (revenues down, adjusted segment EBITDA a loss), and management said there are multiple quarters of work ahead to restore the segment’s P&L.
• Management is maintaining 2026 guidance (revenues $3.94–4.10B; EPS $8.90–9.60), repurchased $126.8M of stock in Q1 with ~$354.9M remaining, but expects SG&A to be ~ $60M higher year‑over‑year and Q2 to be the SG&A peak as hiring and legal costs continue.

FTI Consulting Trading Up 0.3%

FCN traded up $0.63 during trading on Thursday, hitting $179.96. 916,208 shares of the company's stock were exchanged, compared to its average volume of 381,768. The company has a current ratio of 1.56, a quick ratio of 1.56 and a debt-to-equity ratio of 0.21. FTI Consulting has a 1 year low of $149.31 and a 1 year high of $189.30. The stock has a 50 day moving average price of $172.82 and a 200 day moving average price of $170.28. The firm has a market cap of $5.42 billion, a P/E ratio of 21.81 and a beta of -0.01.

Institutional Investors Weigh In On FTI Consulting

Institutional investors have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd grew its stake in FTI Consulting by 1,278.6% during the third quarter. Caitong International Asset Management Co. Ltd now owns 193 shares of the business services provider's stock worth $31,000 after buying an additional 179 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in shares of FTI Consulting in the first quarter valued at $33,000. Global Retirement Partners LLC purchased a new position in shares of FTI Consulting in the fourth quarter valued at $41,000. Northwestern Mutual Wealth Management Co. boosted its stake in shares of FTI Consulting by 4,400.0% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 270 shares of the business services provider's stock valued at $44,000 after purchasing an additional 264 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of FTI Consulting by 258.5% in the second quarter. EverSource Wealth Advisors LLC now owns 294 shares of the business services provider's stock valued at $47,000 after purchasing an additional 212 shares during the period. 99.36% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings restated a "hold (c)" rating on shares of FTI Consulting in a report on Monday, March 23rd. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, FTI Consulting has an average rating of "Hold" and an average price target of $165.00.

FTI Consulting Company Profile

FTI Consulting, Inc is a global business advisory firm providing multidisciplinary solutions designed to address complex challenges and strategic opportunities. The company's primary service offerings encompass corporate finance & restructuring, economic consulting, forensic & litigation consulting, strategic communications, and technology. These capabilities enable clients to manage financial distress, navigate regulatory environments, resolve disputes, build trust with stakeholders, and leverage data-driven insights.

In its corporate finance & restructuring practice, FTI delivers restructuring, interim management, and transaction advisory services to companies facing operational or financial pressures.

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