Exponent (NASDAQ:EXPO) Issues Earnings Results

Exponent (NASDAQ:EXPO) released its quarterly earnings results on Thursday. The business services provider reported $0.60 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.05, FiscalAI reports. The business had revenue of $171.61 million for the quarter, compared to the consensus estimate of $144.99 million. Exponent had a net margin of 18.07% and a return on equity of 27.94%. The company’s quarterly revenue was up 12.0% on a year-over-year basis. During the same period last year, the firm earned $0.52 earnings per share.

Here are the key takeaways from Exponent’s conference call:

• Strong second-quarter execution: Net revenue increased 12% to $148.9 million, EBITDA rose 16% with margin expanding to 28.7%, and diluted EPS grew 15% to $0.60. Results benefited from higher utilization and a large user research engagement.
• Exponent raised its 2026 outlook, now expecting 9%–10% net revenue growth and EBITDA margins of 27.8%–28.1%; third-quarter net revenue is projected to grow 8%–10%.
• Demand for AI-enabled products is expanding Exponent’s proactive user research work across consumer electronics, wearables, medical devices, and other technologies, while reactive opportunities are growing in advanced driver-assistance systems and data-center infrastructure.
• The board authorized an additional $50 million share-repurchase capacity after $211 million of buybacks over the past 12 months, alongside $61 million in dividends; management expects more than $100 million of free cash flow in the second half of 2026.
• Management indicated that the large user research study that represented approximately 4% of second-quarter net revenue moderated late in the quarter and is expected to contribute about 2% of net revenue for the remainder of the year, while fourth-quarter utilization will face normal seasonal pressure.

Exponent Stock Down 1.9%

NASDAQ:EXPO traded down $1.28 during trading hours on Thursday, hitting $64.57. 775,014 shares of the stock traded hands, compared to its average volume of 522,072. The company has a market cap of $3.13 billion, a price-to-earnings ratio of 30.03 and a beta of 0.72. Exponent has a 1 year low of $51.91 and a 1 year high of $81.95. The stock has a 50 day moving average price of $59.67 and a 200 day moving average price of $65.29.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Weiss Ratings restated a “hold (c-)” rating on shares of Exponent in a research note on Friday, July 17th. UBS Group reiterated a “neutral” rating and set a $75.00 target price on shares of Exponent in a research report on Tuesday, June 2nd. Finally, JPMorgan Chase & Co. cut their price target on Exponent from $95.00 to $80.00 and set an “overweight” rating for the company in a report on Friday, May 15th. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Exponent presently has a consensus rating of “Moderate Buy” and a consensus target price of $77.50.

Insider Activity

In other news, CEO Catherine Corrigan sold 4,119 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $57.13, for a total transaction of $235,318.47. Following the sale, the chief executive officer directly owned 106,670 shares in the company, valued at $6,094,057.10. This trade represents a 3.72% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Rakow sold 2,945 shares of Exponent stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $54.66, for a total transaction of $160,973.70. The disclosure for this sale is available in the SEC filing. Insiders have sold 15,324 shares of company stock valued at $855,019 over the last 90 days. Company insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Exponent

Hedge funds have recently made changes to their positions in the business. Invesco Ltd. raised its stake in Exponent by 2.7% during the 4th quarter. Invesco Ltd. now owns 581,878 shares of the business services provider’s stock valued at $40,417,000 after purchasing an additional 15,440 shares during the period. Corient Private Wealth LLC grew its holdings in Exponent by 43.5% during the 4th quarter. Corient Private Wealth LLC now owns 6,915 shares of the business services provider’s stock valued at $480,000 after buying an additional 2,097 shares in the last quarter. Alberta Investment Management Corp bought a new stake in shares of Exponent during the fourth quarter valued at approximately $1,396,000. XTX Topco Ltd purchased a new position in shares of Exponent in the fourth quarter worth $405,000. Finally, nVerses Capital LLC purchased a new position in shares of Exponent in the fourth quarter worth $218,000. Institutional investors own 92.37% of the company’s stock.

About Exponent

Exponent, Inc (NASDAQ: EXPO) is an engineering and scientific consulting firm that offers multidisciplinary analysis and advisory services to clients across a range of industries. The company’s expertise spans mechanical, materials and corrosion engineering, civil and structural engineering, electrical engineering, industrial hygiene, toxicology and health sciences, and failure analysis. Exponent provides support for product design, performance evaluation, litigation consulting, and regulatory compliance, helping manufacturers, insurers, law firms and government agencies address complex technical challenges.

Founded in 1967 in Menlo Park, California, Exponent has grown from a small failure-analysis laboratory into a global consulting practice.