FTI Consulting (NYSE:FCN) Announces Quarterly Earnings Results

FTI Consulting (NYSE:FCN) issued its quarterly earnings data on Thursday. The business services provider reported $3.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $1.10, FiscalAI reports. FTI Consulting had a net margin of 6.44% and a return on equity of 15.91%. The firm had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $1.01 billion. During the same period last year, the business posted $2.60 earnings per share. The business’s revenue for the quarter was up 5.9% compared to the same quarter last year.

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 Price Performance

NYSE:FCN opened at $181.23 on Friday. FTI Consulting has a 52 week low of $129.12 and a 52 week high of $189.30. The firm has a market cap of $5.00 billion, a price-to-earnings ratio of 18.79 and a beta of -0.06. The firm’s 50-day simple moving average is $146.59 and its 200 day simple moving average is $159.90. The company has a debt-to-equity ratio of 0.76, a quick ratio of 2.03 and a current ratio of 2.03.

Key Stories Impacting FTI Consulting

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

• Positive Sentiment: Record quarterly performance: Third-quarter revenue increased 5.9% year over year to $1.013 billion, while adjusted EPS surged 48% to a record $3.84, well above analyst estimates ranging from $2.65 to $2.74. Adjusted EBITDA rose 17.7% to $153.7 million, lifting the margin to 15.2%. FTI Consulting Jumps 14% on Record Q3 Beat
• Positive Sentiment: Higher outlook for adjusted earnings: FTI reaffirmed 2026 revenue guidance of $3.94 billion to $4.10 billion and raised adjusted EPS guidance to $9.50-$10.00 from $9.10-$9.70. Management cited broad-based demand, including strength in Corporate Finance, Economic Consulting, Technology and Strategic Communications. FTI Consulting 2026 Adjusted EPS Outlook
• Positive Sentiment: Cost actions could improve future margins: Staffing and real-estate adjustments are expected to generate approximately $80 million in annualized savings, supporting earnings after implementation costs are absorbed.
• Positive Sentiment: Demand environment remains favorable: CEO Steve Gunby said clients are increasingly turning to FTI Consulting amid disruption and transformation, while the company added former FBI cyber incident-response leader Justin Vallese to its cybersecurity practice. Former FBI Cyber Incident Response Leader Joins FTI Consulting
• Neutral Sentiment: Investor focus: FCN is trading near its 52-week high, so the strong results may already be partly reflected in the valuation. The earnings call emphasized both robust demand and the need to align staffing with uneven service-line activity.
• Negative Sentiment: GAAP results were weaker: Net income declined to $63.4 million from $82.8 million, and GAAP diluted EPS fell to $2.35 from $2.60, primarily because of a $46 million staffing-related special charge, higher expenses and litigation costs. Full-year GAAP EPS guidance was reduced to $7.55-$8.05 from $8.70-$9.30.
• Negative Sentiment: Balance-sheet and segment risks: Cash fell to $88.1 million while debt increased to $852 million. Forensic and Litigation Consulting revenue was nearly flat and its adjusted EBITDA declined, highlighting continuing pockets of softer demand.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on FCN shares. Weiss Ratings upgraded FTI Consulting from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday. Truist Financial dropped their target price 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 investment analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, FTI Consulting has an average rating of “Hold” and a consensus price target of $163.50.

FTI Consulting Company Profile

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.