Exponent Reports Third Quarter 2026 Financial Results
EXPONENT INC (EXPO) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 Exponent Reports Third Quarter 2026 Financial Results MENLO PARK, Calif., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the third quarter of fiscal year 2026 ended October 2, 2026. “Exponent delivered another str
How this was made
The 30-second read
Why it matters
The raised guidance reflects strong demand for engineering and scientific services, especially in AI‑driven physical systems, which may boost investor sentiment toward the sector.
Market read
The earnings beat and raised guidance provide a fresh catalyst for EXPO, likely prompting short‑term buying pressure.
What to watch
Potential headwinds from macro‑economic slowdown or client budget constraints could temper growth.
Exponent reported third-quarter revenue growth of 18%, revenue-before-reimbursements growth of 12%, and raised full-year revenue and EBITDA-margin guidance.
Third-quarter total revenues, revenues before reimbursements, net income, diluted EPS, EBITDA, and EBITDAS all increased from the prior-year quarter. The company cited broad demand in user research and reactive work, reported 77% utilization, and raised full-year revenue and EBITDA-margin guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues before reimbursements, quarter ended October 2, 2026GAAP | $153.1M | – | 12% |
| Reimbursements, quarter ended October 2, 2026GAAP | 20.67M | – | – |
| Revenues, quarter ended October 2, 2026GAAP | 173.7M | – | 18% |
| Compensation and related expenses, quarter ended October 2, 2026GAAP | 90.04M | – | – |
| Other operating expenses, quarter ended October 2, 2026GAAP | 13.81M | – | – |
| Reimbursable expenses, quarter ended October 2, 2026GAAP | 20.67M | – | – |
| General and administrative expenses, quarter ended October 2, 2026GAAP | 7.33M | – | – |
| Operating expenses, quarter ended October 2, 2026GAAP | 131.9M | – | – |
| Operating income, quarter ended October 2, 2026GAAP | 41.88M | – | – |
| Interest income, net, quarter ended October 2, 2026GAAP | 668K | – | – |
| Miscellaneous income (expense), net, quarter ended October 2, 2026GAAP | 448K | – | – |
| Other income (expense), net, quarter ended October 2, 2026GAAP | 1.12M | – | – |
| Income before income taxes, quarter ended October 2, 2026GAAP | 42.99M | – | – |
| Income taxes, quarter ended October 2, 2026GAAP | 12.05M | – | – |
| Net income, quarter ended October 2, 2026GAAP | $30.9M | – | – |
| Basic net income per share, quarter ended October 2, 2026GAAP | $ 0.64 | – | – |
| Diluted net income per share, quarter ended October 2, 2026GAAP | $0.64 per diluted share | – | – |
| Shares used in basic per share computations, quarter ended October 2, 2026GAAP | 48.13M | – | – |
| Shares used in diluted per share computations, quarter ended October 2, 2026GAAP | 48.42M | – | – |
| Consolidated tax rate, quarter ended October 2, 2026GAAP | 28.0% | – | – |
| EBITDA, quarter ended October 2, 2026non-GAAP | $45M | – | – |
| EBITDA as a percentage of revenues before reimbursements, quarter ended October 2, 2026non-GAAP | 29.4% of revenues before reimbursements | – | – |
| Stock-based compensation, quarter ended October 2, 2026other | 6.69M | – | – |
| EBITDAS, quarter ended October 2, 2026non-GAAP | $51.67M | – | – |
| Utilization, third quarter of 2026other | 77% | – | – |
| Revenues before reimbursements, nine months ended October 2, 2026GAAP | $453.7M | – | 11% |
| Reimbursements, nine months ended October 2, 2026GAAP | 57.91M | – | – |
| Revenues, nine months ended October 2, 2026GAAP | 511.6M | – | 18% |
| Compensation and related expenses, nine months ended October 2, 2026GAAP | 282.0M | – | – |
| Other operating expenses, nine months ended October 2, 2026GAAP | 39.50M | – | – |
| Reimbursable expenses, nine months ended October 2, 2026GAAP | 57.91M | – | – |
| General and administrative expenses, nine months ended October 2, 2026GAAP | 20.94M | – | – |
| Operating expenses, nine months ended October 2, 2026GAAP | 400.4M | – | – |
| Operating income, nine months ended October 2, 2026GAAP | 111.3M | – | – |
| Net income, nine months ended October 2, 2026GAAP | $89.9M | – | – |
| Basic net income per share, nine months ended October 2, 2026GAAP | $ 1.84 | – | – |
| Diluted net income per share, nine months ended October 2, 2026GAAP | $1.83 per diluted share | – | – |
| Consolidated tax rate, nine months ended October 2, 2026GAAP | 28.7% | – | – |
| Tax impact associated with share-based awards, nine months ended October 2, 2026GAAP | negative tax impact of $0.8 million | – | – |
| EBITDA, nine months ended October 2, 2026non-GAAP | $130.8M | – | – |
| EBITDA as a percentage of revenues before reimbursements, nine months ended October 2, 2026non-GAAP | 28.8% of revenues before reimbursements | – | – |
| EBITDAS, nine months ended October 2, 2026non-GAAP | $153.3M | – | – |
| Cash and cash equivalents, October 2, 2026GAAP | $114.7M | – | – |
| Cash and cash equivalents, January 2, 2026GAAP | $221.9M | – | – |
| Accounts receivable, net, October 2, 2026GAAP | 209.6M | – | – |
| Accounts receivable, net, January 2, 2026GAAP | 181.5M | – | – |
| Total current assets, October 2, 2026GAAP | 353.3M | – | – |
| Total liabilities, October 2, 2026GAAP | 385.2M | – | – |
| Total stockholders' equity, October 2, 2026GAAP | 307.9M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Engineering and other scientificStrong user research activity across health applications, dynamic and unstructured real-world environments, and sensory perception; dispute-related services involving chemical facilities, consumer products and advanced transportation technologies. | 85% of the Company’s revenues before reimbursements in the third quarter and through the first three quarters of 2026 | – | 13% in the third quarter and through the first three quarters of 2026 |
| Environmental and healthIncreased projects assessing the effects of chemicals on human health and the environment. | 15% of the Company’s revenues before reimbursements in the third quarter and through the first three quarters of 2026 | – | 3% in the third quarter; 4% through the first three quarters of 2026 |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth quarter of fiscal 2026 and full fiscal year 2026 outlook
- RevenueFourth quarter of fiscal 2026: revenues before reimbursements to grow 8% to 10% as compared to the same period one year prior; full fiscal year 2026: revenues before reimbursements to grow 10% to 11% as compared to fiscal year 2025.
- NoteFourth quarter of fiscal 2026: EBITDA to be 26.3% to 26.8% of revenues before reimbursements.
- NoteFull fiscal year 2026: EBITDA to be 28.0% to 28.3% of revenues before reimbursements.
Capital returns
- Through the first three quarters of 2026, Exponent paid $46.1 million in dividends.
- Through the first three quarters of 2026, Exponent repurchased $146.1 million of common stock.
- Exponent announced a quarterly cash dividend of $0.31 to be paid on December 18, 2026.
- Exponent reiterated its intent to continue to pay quarterly dividends.
What drove it
- Continued demand for specialized, integrated engineering and scientific expertise.
- User research studies contributed strongly as clients sought to understand how people interact with technology across a widening range of devices and applications.
- Reactive work grew, including dispute-related and failure-analysis demand in chemical, consumer products and transportation industries.
- The company cited rapid technological innovation, increasing complexity, critical-infrastructure investment, and rising expectations for safety and reliability as long-term trends.
- The CFO said the company scaled its operating model in response to market demand and reported 77% utilization.
Concerns
- The company identified the possibility that demand may decline from changes in generally applicable and industry-specific economic conditions.
- The company identified engagement timing, competitive services and pricing, and the absence of backlog as risks.
- The company identified its ability to attract and retain key employees, tort reform, government regulation, and liabilities resulting from claims as risks.
- Fourth-quarter EBITDA guidance is 26.3% to 26.8% of revenues before reimbursements, while third-quarter EBITDA was reported at 29.4% of revenues before reimbursements.
What to watch
- Fourth-quarter revenues before reimbursements growth guidance of 8% to 10%.
- Fourth-quarter EBITDA guidance of 26.3% to 26.8% of revenues before reimbursements.
- Full-year revenues before reimbursements growth guidance of 10% to 11%.
- Full-year EBITDA guidance of 28.0% to 28.3% of revenues before reimbursements.
- User research activity and reactive demand in chemical facilities, consumer products, and advanced transportation technologies.
- Growth in environmental and health projects assessing chemical effects on human health and the environment.
Balance sheet and cash flow
- Exponent closed the first three quarters of 2026 with $114.7 million in cash and cash equivalents.
- Cash and cash equivalents were $ 114,689 (in thousands) at October 2, 2026, compared with $ 221,930 (in thousands) at January 2, 2026.
- Accounts receivable, net, were 209,604 (in thousands) at October 2, 2026, compared with 181,507 (in thousands) at January 2, 2026.
- Total liabilities were 385,190 (in thousands) at October 2, 2026, compared with 387,178 (in thousands) at January 2, 2026.
- No operating cash flow or free cash flow was reported in the filing.
Analysis
Exponent delivered broad third-quarter growth. Total revenues increased 18% to $173.7 million and revenues before reimbursements increased 12% to $153.1 million. Net income rose to $30.9 million from $28.0 million, while diluted EPS increased to $0.64 from $0.55. For the first three quarters, total revenues increased 18% to $511.6 million and revenues before reimbursements increased 11% to $453.7 million.
Demand was led by the engineering and other scientific segment, which represented 85% of revenues before reimbursements and increased 13% in both the quarter and first three quarters. Management identified user research across health applications, real-world environments, and sensory perception as a growth contributor. Reactive work, including dispute-related services involving chemical facilities, consumer products, and advanced transportation technologies, also contributed. The environmental and health segment represented 15% of revenues before reimbursements and increased 3% in the quarter and 4% through the first three quarters, led by chemical-effects assessment work.
Profitability expanded on the reported EBITDA measure. Third-quarter EBITDA was $45.0 million, or 29.4% of revenues before reimbursements, compared with $38.8 million, or 28.3%, in the prior-year quarter. Through the first three quarters, EBITDA was $130.8 million, or 28.8% of revenues before reimbursements, compared with $113.4 million, or 27.8%. The company reported 77% utilization in the third quarter. The consolidated tax rate was 28.0% in the quarter and 28.7% through the first three quarters.
Capital allocation was substantial through the first three quarters, with $46.1 million of dividends paid and $146.1 million of common stock repurchased. The company ended the period with $114.7 million in cash and cash equivalents and announced a $0.31 quarterly cash dividend payable December 18, 2026. It raised its full-year outlook to revenues-before-reimbursements growth of 10% to 11% and EBITDA of 28.0% to 28.3% of revenues before reimbursements. Fourth-quarter guidance calls for 8% to 10% revenues-before-reimbursements growth and EBITDA of 26.3% to 26.8% of revenues before reimbursements.
Management, verbatim
Exponent delivered another strong quarter, with double-digit growth in revenues and earnings, reflecting continued demand for our specialized, integrated engineering and scientific expertise.
Dr. Catherine Corrigan, Chief Executive Officer
Our ability to scale our operating model in response to market demand resulted in 77% utilization and expanded profitability during the third quarter of 2026.
Eric Anderson, Chief Financial Officer
As we close out 2026, we are raising our full-year revenue and margin guidance, reflecting the strength of our year-to-date performance and our outlook for the remainder of the year.
Eric Anderson, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- GAAP gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Debt was not reported.
- Separate dollar revenue amounts for the engineering and other scientific segment and the environmental and health segment were not reported.
- Prior-quarter comparisons were not reported for the income-statement metrics.
- Fourth-quarter and full-year guidance for gross margin, operating expenses, tax rate, GAAP EPS, operating cash flow, and free cash flow was not reported.
- Balance-sheet line items not included in key metrics: prepaid expenses and other assets, property, equipment and leasehold improvements, net, operating lease right-of-use asset, goodwill, other assets, accounts payable and accrued liabilities, accrued payroll and employee benefits, deferred revenues, operating lease liabilities, other liabilities, common stock, additional paid-in capital, accumulated other comprehensive loss, retained earnings, and treasury stock.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Exponent Inc. (NASDAQ:EXPO) filed an 8‑K reporting its Q3 2026 financial results and updated guidance.
Ticker impact
Exponent Inc. reported Q3 2026 results with double‑digit revenue growth and raised full‑year guidance.
upward pressure as investors price in higher revenue and margin expectations
The company disclosed higher than prior‑year revenues, increased EBITDA margin and explicitly raised full‑year revenue and margin guidance, which typically drives buying interest.
Market effects
Engineering and scientific consulting firms may see renewed investor interest as Exponent highlights demand across AI‑enabled systems and critical infrastructure.
U.S. market participants focused on technology‑service stocks may adjust exposure.
Limited to firms with similar service offerings; broader market impact modest.
Counterpoint
If the guidance raise is already priced in, the stock could face a short‑term pull‑back.
Key entities
- ExecutiveCatherine Corrigan
Chief Executive Officer of Exponent, quoted on results.
- ExecutiveEric Anderson
Chief Financial Officer, discussed outlook and guidance.
