FTI Consulting (NYSE:FCN) Issues Earnings Results, Misses Estimates By $0.01 EPS

FTI Consulting (NYSE:FCN) released its quarterly earnings data on Thursday. The business services provider reported $2.16 EPS for the quarter, missing analysts’ consensus estimates of $2.17 by ($0.01), FiscalAI reports. FTI Consulting had a return on equity of 15.91% and a net margin of 6.44%.The firm had revenue of $993.46 million during the quarter, compared to analyst estimates of $992.75 million. During the same quarter in the prior year, the company posted $2.13 EPS. The company’s quarterly revenue was up 5.3% on a year-over-year basis. 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

Shares of FCN stock opened at $159.68 on Friday. The stock’s fifty day simple moving average is $155.45 and its 200 day simple moving average is $165.33. The company has a debt-to-equity ratio of 0.76, a current ratio of 2.03 and a quick ratio of 2.30. The firm has a market cap of $4.81 billion, a price-to-earnings ratio of 19.31 and a beta of -0.04. FTI Consulting has a one year low of $137.65 and a one year high of $189.30.

Insider Transactions at FTI Consulting

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

Institutional Trading of FTI Consulting

Several institutional investors and hedge funds have recently added to or reduced their stakes in FCN. Caitong International Asset Management Co. Ltd lifted its stake in FTI Consulting by 1,278.6% in the third quarter. Caitong International Asset Management Co. Ltd now owns 193 shares of the business services provider’s stock valued at $31,000 after buying an additional 179 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in FTI Consulting during the 1st quarter worth approximately $33,000. Global Retirement Partners LLC bought a new position in FTI Consulting during the 4th quarter worth approximately $41,000. Northwestern Mutual Wealth Management Co. grew its holdings in FTI Consulting by 4,400.0% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 270 shares of the business services provider’s stock valued at $44,000 after purchasing an additional 264 shares during the period. Finally, EverSource Wealth Advisors LLC increased its stake in FTI Consulting by 258.5% in the second quarter. EverSource Wealth Advisors LLC now owns 294 shares of the business services provider’s stock valued at $47,000 after purchasing an additional 212 shares in the last quarter. 99.36% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

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

FTI Consulting News Summary

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

• Positive Sentiment: Second-quarter revenue reached a record $993.5 million, up 5.3% year over year and broadly in line with analyst expectations. Growth was led by Corporate Finance, Technology, and Forensic and Litigation Consulting. FTI Consulting Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Adjusted EPS increased to $2.16 from $2.13 a year earlier after excluding $6.6 million of extraordinary litigation-related expenses. Operating cash flow improved sharply to $152.3 million for the quarter, supporting capital returns. FTI Consulting Posts Record Q2 Revenue, Reaffirms 2026 Outlook
• Positive Sentiment: FTI Consulting repurchased approximately 2.6 million shares for $390.9 million during the quarter and has about $344 million remaining under its buyback authorization, potentially supporting per-share results.
• Neutral Sentiment: The company reaffirmed 2026 revenue guidance of $3.94 billion to $4.10 billion and introduced adjusted EPS guidance of $9.10 to $9.70, indicating confidence in underlying operations.
• Negative Sentiment: Adjusted EPS of $2.16 missed the $2.26 consensus estimate, while revenue was slightly below the $997.6 million consensus. GAAP diluted EPS fell to $1.99 from $2.13, and net income declined to $57.8 million from $71.7 million.
• Negative Sentiment: Full-year GAAP EPS guidance was reduced to $8.70-$9.30 from $8.90-$9.60, below the roughly $9.23 analyst expectation. Management attributed the gap partly to anticipated litigation-related expenses.
• Negative Sentiment: Adjusted EBITDA fell to $104.5 million from $111.6 million, reducing the margin to 10.5% from 11.8%. Higher compensation, selling expenses, interest costs, and weakness in Economic Consulting pressured profitability. Net debt also increased substantially as buybacks were funded with debt.

FTI Consulting declared that its Board of Directors has approved a share repurchase program on Friday, June 5th that allows the company to buyback $370.00 million in shares. This buyback authorization allows the business services provider to buy up to 7.9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

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.