FTI Consulting (NYSE:FCN) Releases Quarterly Earnings Results, Beats Estimates By $1.10 EPS

FTI Consulting (NYSE:FCN) announced its earnings results on Thursday. The business services provider reported $3.84 earnings per share (EPS) for the quarter, topping 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 net margin of 6.44% and a return on equity of 15.91%. FTI Consulting’s revenue was up 5.9% compared to the same quarter last year. During the same quarter last year, the business earned $2.60 earnings per share.

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 14.3%

Shares of FCN traded up $22.64 during mid-day trading on Thursday, reaching $181.23. The company had a trading volume of 1,263,902 shares, compared to its average volume of 439,388. FTI Consulting has a fifty-two week low of $129.12 and a fifty-two week high of $189.30. The firm has a fifty day simple moving average of $146.04 and a 200-day simple moving average of $159.88. The stock has a market cap of $5.00 billion, a price-to-earnings ratio of 21.91 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 FTI Consulting News

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

• Positive Sentiment: Adjusted EPS significantly exceeded expectations. Third-quarter adjusted EPS rose 48% year over year to a record $3.84, versus consensus estimates ranging from $2.65 to $2.74. Revenue increased 5.9% to a record $1.013 billion, broadly in line with expectations. FTI Consulting Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management raised its adjusted earnings outlook. FTI reaffirmed 2026 revenue guidance of $3.94 billion to $4.10 billion and increased adjusted EPS guidance to $9.50-$10.00 from $9.10-$9.70. Adjusted EBITDA increased 17.7% to $153.7 million, with the margin expanding to 15.2%.
• Positive Sentiment: Growth was broad-based. Revenue increased across all five segments, led by Economic Consulting, Technology and Strategic Communications. The company also expects staffing and real-estate actions to generate approximately $80 million in annualized savings. FTI Consulting Reports Record Third-Quarter Revenue and Adjusted EPS
• Positive Sentiment: New cybersecurity expertise could support future demand. Former FBI cyber incident-response leader Justin Vallese joined FTI’s cybersecurity practice, strengthening its capabilities in a growing advisory market. Former FBI Cyber Incident Response Leader Joins FTI
• Neutral Sentiment: FTI’s survey found that many organizations have crisis plans but lack proactive risk-preparedness capabilities, potentially highlighting demand for the company’s crisis, investigations and advisory services. FTI General Counsel Survey
• Negative Sentiment: GAAP results weakened. Net income fell to $63.4 million from $82.8 million, while diluted EPS declined to $2.35 from $2.60, primarily because of a $46 million staffing-alignment charge, higher expenses and increased interest costs.
• Negative Sentiment: GAAP EPS guidance was lowered. Full-year GAAP EPS guidance fell to $7.55-$8.05 from $8.70-$9.30, and FTI expects another approximately $7 million special charge in the fourth quarter. Debt also increased year over year while cash declined.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in 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 lowered their price objective on FTI Consulting from $180.00 to $158.00 and set a “hold” rating for the company in a research report on Friday, October 23rd. Two research analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus 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.