FTI Consulting (NYSE:FCN) Issues 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 for the quarter, missing analysts’ consensus estimates of $2.26 by ($0.10), FiscalAI reports. The company had revenue of $993.46 million during 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%.The company’s revenue was up 5.3% compared to the same quarter last year. During the same period last year, the company posted $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 Stock Down 4.1%

Shares of FCN stock traded down $6.91 during trading on Thursday, reaching $163.51. The company’s stock had a trading volume of 347,163 shares, compared to its average volume of 436,922. The company has a market cap of $4.93 billion, a price-to-earnings ratio of 19.45 and a beta of -0.04. FTI Consulting has a one year low of $137.65 and a one year high of $189.30. The business has a fifty day moving average price of $155.14 and a 200-day moving average price of $165.46. The company has a quick ratio of 2.30, a current ratio of 2.30 and a debt-to-equity ratio of 0.45.

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

Insider Buying and Selling at FTI Consulting

In related news, insider Paul Alderman Linton bought 2,400 shares of the business’s stock in a transaction dated Wednesday, May 13th. The stock was purchased at an average cost of $144.04 per share, for a total transaction of $345,696.00. Following the transaction, the insider owned 92,824 shares in the company, valued at $13,370,368.96. The trade was a 2.65% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Steven Henry Gunby bought 10,000 shares of FTI Consulting stock in a transaction dated Wednesday, May 13th. The shares were bought at an average cost 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 in the company, valued at $47,141,283.28. This represents a 3.15% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought a total of 14,400 shares of company stock worth $2,076,576 over the last quarter. 1.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On FTI Consulting

A number of large investors have recently bought and sold shares of FCN. Caitong International Asset Management Co. Ltd lifted its holdings in shares of FTI Consulting by 1,278.6% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 193 shares of the business services provider’s stock worth $31,000 after acquiring an additional 179 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of FTI Consulting in the 1st quarter valued at $33,000. Global Retirement Partners LLC bought a new stake in shares of FTI Consulting during the 4th quarter valued at approximately $41,000. Northwestern Mutual Wealth Management Co. increased its holdings in FTI Consulting by 4,400.0% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 270 shares of the business services provider’s stock worth $44,000 after purchasing an additional 264 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its position 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 during the last quarter. 99.36% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

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

FTI Consulting Company Profile

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.