GET DAILY SIGNALSCharles River Associates (CRAI) Delivers +15.6% Revenue Growth in Fiscal Q3
Key Takeaways
- Revenue reached a record $214.9 million in the fiscal third quarter, up 15.6% year over year and well above the roughly $199 million consensus estimate.
- Non-GAAP earnings per share (EPS) came in at $2.19, beating the $2.07 consensus by about 5.6%, while GAAP diluted EPS rose 27.2% to $2.20.
- Management raised full-year fiscal 2026 revenue guidance to a range of $830 million to $840 million, up from the prior $805 million to $820 million.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $27.1 million, topping estimates, with the operating margin expanding to 11.1% from 9.3% a year earlier.
- The company raised its quarterly dividend 17.5% to $0.67 per share, marking its tenth consecutive annual increase.
- Seven practices grew year over year, representing roughly 95% of total revenue, while consultant utilization improved to 78%.
Earnings Context and Why It Matters
Charles River Associates (CRAI) is a global consulting firm specializing in economic, financial, and management services, with a strong franchise in antitrust, litigation support, and regulatory consulting. This quarterly earnings report matters because it signals whether demand for high-value advisory work remains resilient amid a shifting mergers and acquisitions (M&A) environment and evolving regulatory conditions. CRAI entered the quarter with momentum, having posted record revenue in the prior two quarters, and investors were watching whether that acceleration could continue. The results also offer a read on consultant hiring, utilization, and margin discipline, key drivers of profitability in a people-intensive business. A raised full-year outlook reinforced the company's confidence in its pipeline. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
For the fiscal third quarter ended October 3, 2026, CRAI reported revenue of $214.9 million, up 15.6% from the prior-year period and above the roughly $199 million consensus estimate. Net income increased 21.2% to $13.9 million, while GAAP diluted EPS climbed 27.2% to $2.20. On a non-GAAP basis, adjusted EPS was $2.19, exceeding the $2.07 consensus by about 5.6%.
Adjusted EBITDA came in at $27.1 million, ahead of the approximately $24.7 million analysts expected, and the operating margin improved to 11.1% from 9.3% a year earlier. Growth was broad-based: seven practices grew year over year, representing about 95% of total revenue. Legal & Regulatory revenue rose 15.7%, while Management Consulting revenue increased 9.8%. Consultant headcount grew 6.2% year over year, and utilization improved to 78% from 77%. From what I see, these metrics point to solid operational execution.
Management raised its full-year fiscal 2026 revenue guidance to $830 million to $840 million on a constant-currency basis, up from $805 million to $820 million, while narrowing its non-GAAP EBITDA margin outlook to 12.2% to 12.8% from 12.0% to 13.0%. The company also declared a 17.5% dividend increase to $0.67 per share.
Market Reaction and Investor Sentiment
The initial market reaction to CRAI's report was relatively muted, with shares trading roughly flat in the immediate aftermath of the release despite a sizable revenue beat and an upward revision to full-year guidance. That tempered response reflects a key tension in the results: the top line grew more than twice as fast as non-GAAP EPS, as higher interest expense, a rising tax rate, and increased forgivable loan amortization tied to talent investments pressured the bottom line. Investors appeared to weigh the strong demand story against margin and tax headwinds, as well as a narrowing of the upper end of the EBITDA margin guidance range.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors will be watching whether CRAI can sustain its revenue acceleration while managing costs that have kept earnings growth below top-line growth. The company's raised full-year revenue guidance of $830 million to $840 million signals continued confidence in demand, but the narrowed EBITDA margin range of 12.2% to 12.8% suggests profitability expectations remain measured.
One important factor is the M&A environment. Worldwide M&A activity slowed sharply in the third quarter, even as CRAI's Antitrust & Competition Economics practice posted a seventh consecutive record quarter. Because antitrust work tends to lag deal activity, a sustained slowdown in dealmaking could eventually weigh on one of the company's strongest franchises.
Cost trends also deserve attention. Forgivable loan amortization related to consultant hiring is expected to rise roughly $15 million this year, and a higher non-GAAP tax rate pressured earnings. Finally, investors should monitor consultant headcount, utilization, and the sales pipeline, since lead flow and new project originations grew more than 20% year over year and remain central to sustaining growth into fiscal 2027. I'm watching this closely for signs of sustained momentum.
Exploring Tickeron’s AI Tools in My Research
In my research process, I frequently use Tickeron’s AI Screener to filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. This helps me surface comparable opportunities and emerging signals across the market more efficiently than manual screening, particularly when tracking names like CRAI. It offers a structured way to identify trade ideas and breakout candidates while complementing traditional analysis.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CRAI's RSI Oscillator peaks and leaves overbought zone
The 10-day RSI Indicator for CRAI moved out of overbought territory on October 27, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 instances where the indicator moved out of the overbought zone. In 25 of the 35 cases the stock moved lower in the days that followed. This puts the odds of a move down at 71%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 37 of 62 cases where CRAI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 60%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CRAI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 63%.
CRAI broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 01, 2026. You may want to consider a long position or call options on CRAI as a result. In 73 of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 78%.
CRAI moved above its 50-day moving average on October 01, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CRAI crossed bullishly above the 50-day moving average on October 09, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 83%.
Following a +11.70% 3-day Advance, the price is estimated to grow further. Considering data from situations where CRAI advanced for three days, in 253 of 354 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
The Aroon Indicator entered an Uptrend today. In 182 of 246 cases where CRAI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 74%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 30 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 37 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. CRAI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 41 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock slightly better than average.
The Tickeron Seasonality Score of 45 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 74 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.722) is normal, around the industry mean (13.159). P/E Ratio (25.625) is within average values for comparable stocks, (49.667). Projected Growth (PEG Ratio) (1.082) is also within normal values, averaging (2.814). Dividend Yield (0.012) settles around the average of (0.025) among similar stocks. P/S Ratio (1.357) is also within normal values, averaging (26.240).
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of economic consulting services
Industry DataProcessingServices
Advertisement