FTI Consulting (NYSE:FCN) Issues Earnings Results

FTI Consulting (NYSE:FCN) posted its earnings results on Thursday. The business services provider reported $3.84 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.74 by $1.10, FiscalAI reports. FTI Consulting had a return on equity of 18.41% and a net margin of 5.86%. The firm had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $1.01 billion. During the same period in the previous year, the firm earned $2.60 earnings per share. The company’s revenue was up 5.9% on a year-over-year basis.

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

FCN stock opened at $183.50 on Friday. The stock has a 50-day moving average price of $147.19 and a two-hundred day moving average price of $159.93. FTI Consulting has a 1 year low of $129.12 and a 1 year high of $189.30. The stock has a market cap of $5.07 billion, a PE ratio of 22.88 and a beta of -0.06. The company has a current ratio of 1.72, a quick ratio of 2.03 and a debt-to-equity ratio of 0.64.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the company. Weiss Ratings upgraded FTI Consulting from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday. Truist Financial lowered their target price on FTI Consulting from $180.00 to $158.00 and set a “hold” rating for the company in a research note on Friday, October 23rd. Two equities research analysts have rated the stock with a Hold rating. According to MarketBeat, FTI Consulting currently has a consensus rating of “Hold” and an average price target of $163.50.

More FTI Consulting News

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

• Positive Sentiment: Q3 earnings substantially exceeded expectations. Adjusted EPS was $3.84, up 48% year over year and well above the $2.65–$2.74 analyst consensus range. Revenue rose 5.9% to a record $1.013 billion, broadly in line with estimates. FCN Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Underlying profitability improved. Adjusted EBITDA increased to $153.7 million from $130.6 million, while the margin expanded to 15.2% from 13.7%. Growth was broad-based, with particularly strong revenue gains in Economic Consulting, Technology and Strategic Communications, alongside higher Corporate Finance success fees.
• Positive Sentiment: Management raised its adjusted earnings outlook. Full-year 2026 adjusted EPS guidance increased to $9.50–$10.00 from $9.10–$9.70, while revenue guidance was reaffirmed at $3.94–$4.10 billion. The company also expects staffing and real-estate actions to generate approximately $80 million in annualized savings. FTI Consulting Outlines 2026 Adjusted EPS Guidance
• Positive Sentiment: Management cited resilient client demand. FTI said organizations facing disruption are increasingly seeking its restructuring, advisory, litigation, technology and communications expertise, supporting investor confidence in the firm’s growth platform.
• Neutral Sentiment: FTI repurchased approximately $79.4 million of stock during the quarter, with about $264.7 million remaining under its buyback authorization.
• Negative Sentiment: GAAP results were pressured by restructuring costs. Net income declined to $63.4 million from $82.8 million, and GAAP EPS fell to $2.35 from $2.60 because of a $46 million staffing-related special charge and higher expenses. Consequently, full-year GAAP EPS guidance was reduced to $7.55–$8.05 from $8.70–$9.30. A further special charge of approximately $7 million is expected in the fourth quarter.

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.