FTI Consulting (FCN) Earnings Date & Reports

Key Takeaways

• FTI Consulting posted record third-quarter revenue of $1.013 billion, up 6% year over year and crossing the $1 billion mark for the first time in company history.
• Adjusted EPS (earnings per share) reached a record $3.84, up 48% from $2.60 a year ago and roughly 40% above the $2.74 consensus estimate.
• GAAP (Generally Accepted Accounting Principles) EPS was $2.35, down 10% year over year, reflecting a $46 million restructuring-related special charge.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 18% to $153.7 million, with margins improving 150 basis points to 15.2%.
• The company reaffirmed its full-year 2026 revenue outlook and raised its adjusted EPS guidance to a range of $9.50 to $10.00.
• For additional context, explore FTI Consulting's Major News, Today's Price Move, Price Targets, and Forecast on Tickeron's dedicated pages.
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Earnings Context and Why It Matters

FTI Consulting is a global expert advisory firm serving organizations facing crisis and transformation, spanning corporate finance, forensic and litigation consulting, economic consulting, technology, and strategic communications. Its third-quarter report, covering the period ended September 30, 2026, carries particular weight because the company had spent several quarters digesting disruption in its economic consulting segment while managing softer demand in select regions. The results offered a clearer signal on whether revenue growth could finally translate into stronger profitability. For investors, the quarter tested the durability of the firm's margin recovery, the impact of a large workforce restructuring, and management's confidence in its full-year outlook.

Reported Results

Revenue for the third quarter of 2026 came in at a record $1.013 billion, an increase of 6% from $956.2 million in the prior-year quarter and in line with Wall Street's consensus of about $1.01 billion. Growth was broad-based, with all five business segments delivering higher top-line results.

Adjusted EPS surged to a record $3.84, up 48% from $2.60 a year earlier and well above the $2.74 consensus estimate. On a GAAP basis, however, EPS declined 10% to $2.35. The gap stemmed from a $46 million third-quarter special charge tied to targeted headcount actions and non-cash real estate costs, plus extraordinary litigation-related expenses. Net income was $63.4 million, down from $82.8 million in the prior quarter.

Adjusted EBITDA rose 18% to $153.7 million, exceeding consensus by roughly 25%, while adjusted EBITDA margin improved to 15.2%. For the full year, management reaffirmed revenue guidance of $3.940 billion to $4.100 billion but lowered its GAAP EPS outlook to $7.55–$8.05, reflecting the restructuring charges, while raising adjusted EPS guidance to $9.50 to $10.00, up from a prior range of $9.10 to $9.70.

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Market Reaction and Investor Sentiment

The third-quarter report was widely framed by analysts as a "powerful" quarter, with management describing the results as a resumption of the company's long-term growth trajectory rather than a one-time surge. Sentiment heading into the release had been cautious after several softer quarters, but the combination of a record revenue milestone, a sharply better-than-expected adjusted EPS figure, and an upwardly revised adjusted EPS outlook provided a strong counterpoint. Investors were also attentive to the restructuring program, which management said is expected to generate roughly $80 million in annualized cost savings. The key questions in the market center on how much of the adjusted EPS beat reflects durable operating improvement versus favorable one-time factors such as elevated success fees and a lower tax rate.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors will focus on whether FTI Consulting can sustain its margin momentum beyond the third quarter. Management expects a smaller, roughly $7 million special charge in the fourth quarter as the staffing realignment concludes, and it projects meaningful annualized cost savings from the actions already taken.

Another factor to watch is the economic consulting segment, which management believes will stop weighing on results in the second half of 2026. A cleaner performance there would support the narrative that underlying growth is resuming across the business.

Investors should also monitor demand signals across segments, including litigation activity, investigations, and corporate reputation work, as well as billable headcount trends and utilization. Finally, the company's balance-sheet priorities remain relevant: total debt fell to $852 million from $1.02 billion in the prior quarter, alongside ongoing share repurchases, suggesting management continues to balance reinvestment with capital returns.

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