FTI Consulting (NYSE:FCN) Issues Quarterly Earnings Results, Misses Estimates By $0.10 EPS

FTI Consulting (NYSE:FCN) posted its quarterly earnings results on Thursday. The business services provider reported $2.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.26 by ($0.10), FiscalAI reports. The firm had revenue of $993.46 million for the quarter, compared to analysts’ expectations of $997.57 million. FTI Consulting had a return on equity of 15.14% and a net margin of 6.88%.The company’s revenue for the quarter was up 5.3% on a year-over-year basis. During the same period in the prior year, the company earned $2.13 earnings per share. FTI Consulting updated its FY 2026 guidance to 8.700-9.300 EPS.

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

• Adjusted EBITDA declined year over year to $104.5 million, or 10.5% of revenue, despite record revenue, as higher direct costs and SG&A—including $6.6 million in extraordinary litigation expenses—more than offset growth.
• FTI lowered its full-year GAAP EPS guidance to $8.70–$9.30 from $8.90–$9.60, while maintaining revenue guidance of $3.94 billion–$4.10 billion; U.K. case-timing issues and ongoing Middle East geopolitical disruption add uncertainty.
• Second-quarter revenue rose 5.3% year over year to a record level, led by CorpFin, Technology, and FLC. CorpFin grew 8.5%, Technology grew 18.4%, and global restructuring revenue increased 8% in the first half despite a softer overall market.
• Econ showed meaningful sequential improvement, with revenue up $13.2 million and adjusted EBITDA up $14.7 million; management expects the segment to stop being a year-over-year drag on revenue and EBITDA in the second half.
• FTI repurchased 2.6 million shares for $390.9 million during the quarter, with approximately $344 million remaining under its authorization, and expanded its revolver from $900 million to $1.5 billion to increase financial flexibility.

FTI Consulting Price Performance

FTI Consulting stock traded down $7.29 during mid-day trading on Thursday, reaching $163.13. The company had a trading volume of 334,114 shares, compared to its average volume of 436,791. The stock’s 50-day simple moving average is $155.14 and its 200-day simple moving average is $165.46. FTI Consulting has a 1 year low of $137.65 and a 1 year high of $189.30. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.30 and a quick ratio of 2.30. The company has a market capitalization of $4.92 billion, a P/E ratio of 19.37 and a beta of -0.04.

FTI Consulting declared that its Board of Directors has authorized a stock repurchase program on Friday, June 5th that authorizes the company to buyback $370.00 million in outstanding shares. This buyback authorization authorizes the business services provider to repurchase up to 7.9% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

Several research firms have issued reports on FCN. Wall Street Zen cut FTI Consulting from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Truist Financial lifted their price target on FTI Consulting from $165.00 to $180.00 and gave the company a “hold” rating in a research note on Monday, May 4th. The Goldman Sachs Group set a $169.00 price objective on FTI Consulting in a report on Tuesday, May 19th. Finally, Weiss Ratings cut FTI Consulting from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, July 8th. Two analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, FTI Consulting presently has an average rating of “Hold” and a consensus target price of $174.50.

Insider Transactions at FTI Consulting

In other news, CEO Steven Henry Gunby acquired 10,000 shares of FTI Consulting stock in a transaction that occurred on Wednesday, May 13th. The stock was purchased at an average cost of $144.17 per share, with a total value of $1,441,700.00. Following the completion of the acquisition, the chief executive officer owned 326,984 shares in the company, valued at $47,141,283.28. This trade represents a 3.15% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Paul Alderman Linton bought 2,400 shares of the firm’s stock in a transaction on Wednesday, May 13th. The shares were purchased at an average price of $144.04 per share, for a total transaction of $345,696.00. Following the completion of the transaction, the insider owned 92,824 shares of the company’s stock, valued at $13,370,368.96. This represents a 2.65% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 14,400 shares of company stock valued at $2,076,576 in the last quarter. 1.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Corient Private Wealth LLC boosted its position in shares of FTI Consulting by 3,332.4% in the 4th quarter. Corient Private Wealth LLC now owns 163,350 shares of the business services provider’s stock worth $27,905,000 after buying an additional 158,591 shares in the last quarter. Alberta Investment Management Corp purchased a new position in FTI Consulting during the 4th quarter valued at about $1,384,000. Mercer Global Advisors Inc. ADV raised its position in FTI Consulting by 146.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 5,726 shares of the business services provider’s stock worth $978,000 after acquiring an additional 3,401 shares during the last quarter. SkyView Investment Advisors LLC raised its position in FTI Consulting by 0.9% during the fourth quarter. SkyView Investment Advisors LLC now owns 10,074 shares of the business services provider’s stock worth $1,721,000 after acquiring an additional 92 shares during the last quarter. Finally, Gotham Asset Management LLC lifted its holdings in shares of FTI Consulting by 229.5% in the fourth quarter. Gotham Asset Management LLC now owns 137,835 shares of the business services provider’s stock valued at $23,546,000 after purchasing an additional 96,005 shares in the last quarter. Institutional investors and hedge funds own 99.36% of the company’s stock.

About FTI Consulting

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.