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

FTI Consulting (NYSE:FCN) issued its earnings results on Thursday. The business services provider reported $2.16 earnings per share for the quarter, missing the consensus estimate of $2.26 by ($0.10), FiscalAI reports. The business had revenue of $993.46 million for the quarter, compared to analyst estimates of $997.57 million. FTI Consulting had a return on equity of 15.14% and a net margin of 6.88%.FTI Consulting’s revenue was up 5.3% on a year-over-year basis. During the same period last year, the business posted $2.13 EPS. 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 Stock Performance

Shares of FCN stock traded down $7.29 during trading hours on Thursday, hitting $163.13. The stock had a trading volume of 334,114 shares, compared to its average volume of 436,791. 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 firm has a market capitalization of $4.92 billion, a PE ratio of 19.37 and a beta of -0.04. The stock’s 50 day moving average is $155.14 and its 200 day moving average is $165.46. FTI Consulting has a twelve month low of $137.65 and a twelve month high of $189.30.

FTI Consulting announced that its board has authorized a stock buyback plan on Friday, June 5th that permits the company to repurchase $370.00 million in shares. This repurchase authorization permits the business services provider to purchase up to 7.9% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Insider Activity at FTI Consulting

In other FTI Consulting news, CFO Eun Nam acquired 2,000 shares of the company’s stock in a transaction on Wednesday, May 13th. The shares were bought at an average cost of $144.59 per share, for a total transaction of $289,180.00. Following the completion of the purchase, the chief financial officer owned 21,592 shares in the company, valued at $3,121,987.28. This trade represents a 10.21% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Paul Alderman Linton bought 2,400 shares of FTI Consulting stock in a transaction dated Wednesday, May 13th. The stock was acquired at an average cost of $144.04 per share, with a total value of $345,696.00. Following the completion of the acquisition, the insider directly owned 92,824 shares of the company’s stock, valued at approximately $13,370,368.96. The trade was a 2.65% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired a total of 14,400 shares of company stock worth $2,076,576 in the last 90 days. 1.80% of the stock is owned by insiders.

Hedge Funds Weigh In On FTI Consulting

Institutional investors have recently added to or reduced their stakes in the stock. Corient Private Wealth LLC grew its stake 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 valued at $27,905,000 after purchasing an additional 158,591 shares during the last quarter. Alberta Investment Management Corp acquired a new stake in shares of FTI Consulting during the fourth quarter worth $1,384,000. Mercer Global Advisors Inc. ADV lifted its holdings in shares of 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 purchasing an additional 3,401 shares during the period. SkyView Investment Advisors LLC grew its position in FTI Consulting by 0.9% in the 4th quarter. SkyView Investment Advisors LLC now owns 10,074 shares of the business services provider’s stock valued at $1,721,000 after buying an additional 92 shares during the last quarter. Finally, Gotham Asset Management LLC increased its stake in FTI Consulting by 229.5% in the 4th quarter. Gotham Asset Management LLC now owns 137,835 shares of the business services provider’s stock valued at $23,546,000 after buying an additional 96,005 shares during the period. Institutional investors and hedge funds own 99.36% of the company’s stock.

Analyst Ratings Changes

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

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.