Houlihan Lokey (NYSE:HLI) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings, Stock Drops
Houlihan Lokey (NYSE:HLI) reported Q2 CY2026 sales of $511 million, down 15.6% year on year, below analyst expectations. Non-GAAP EPS was $1.35, 17.7% under consensus. CEO Scott Adelson cited headwinds in Corporate Finance tied to Middle East instability and software technology disruptions. The stock fell 7.3% to $128.95 after results.
How this was made
The 30-second read
Why it matters
Revenue fell 15.6% YoY to $511M and non-GAAP EPS of $1.35 missed consensus, with the stock down 7.3% immediately after reporting, indicating the market is focused on near-term earnings power.
Market read
This is a direct earnings miss with quantified downside versus consensus and an immediate price reaction, making it actionable for short-term positioning and estimate sensitivity.
What to watch
The article cites instability and technology/software disruptions but does not quantify deal pipeline, backlog, or segment margins, which could be the key driver for estimate revisions.
Background
Houlihan Lokey attributed the quarter’s weakness to headwinds in Corporate Finance, including Middle East instability and disruptions in the technology sector, specifically software.
Ticker impact
Houlihan Lokey reported Q2 CY2026 revenue of $511M, down 15.6% YoY, and non-GAAP EPS of $1.35 below consensus, sending the stock down 7.3%.
Bearish bias for the next few sessions as traders reprice the revenue and margin outlook; follow-through depends on management commentary on when headwinds fade.
The article provides concrete downside figures versus analyst expectations and notes an immediate post-report selloff, indicating the market is reacting to the miss rather than a purely narrative recap.
Market effects
Weak Corporate Finance and capital markets activity signals continued softness in deal-related advisory and financing demand.
No specific regional demand signal beyond cited Middle East instability.
Headwinds tied to geopolitics and software-sector disruptions suggest broader cross-sector risk appetite constraints.
Counterpoint
Management frames the headwinds as temporary and not a cyclical downturn, implying the selloff may over-discount a rebound if public market conditions remain strong.
Key entities
- companyHoulihan Lokey
Investment banking firm reporting Q2 CY2026 revenue and non-GAAP EPS below analyst estimates.
- personScott Adelson
CEO who said headwinds are temporary and not indicative of a cyclical downturn.
