FTI CONSULTING, INC (FCN): Results of Operations and Financial Condition
FTI CONSULTING, INC (FCN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FTI Consulting, Inc. 555 12th Street NW Washington, DC 20004 +1.202.312.9100 Investor & Media Contact: Mollie Hawkes +1.617.747.1791 mollie.hawkes@fticonsulting.com FTI Consulting Reports Record Third Quarter 2026 Revenues of $1.013 Billion, With Growth Across All Fi
How this was made
The 30-second read
Why it matters
The guidance raise signals stronger future earnings, likely supporting the stock price in the short term.
Market read
First‑report earnings and guidance update for a mid‑cap consulting firm; actionable for traders.
What to watch
The special $46M charge and higher debt levels may limit upside despite higher EPS guidance.
FTI Consulting Reports Record Third Quarter 2026 Revenues of $1.013 Billion, With Growth Across All Five Business Segments
Record revenue grew across all five segments and adjusted profitability expanded, but GAAP net income and diluted EPS declined following a $46.0 million special charge, while full-year GAAP EPS guidance was reduced.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third quarter 2026 revenuesGAAP | $1.01B | – | 5.9% |
| Nine months ended September 30, 2026 revenuesGAAP | $2.99B | – | – |
| Third quarter 2026 direct cost of revenuesGAAP | 661,773 | – | – |
| Third quarter 2026 selling, general and administrative expensesGAAP | 214,404 | – | – |
| Third quarter 2026 special chargesGAAP | 46,008 | – | – |
| Third quarter 2026 operating incomeGAAP | $89.84M | – | – |
| Nine months ended September 30, 2026 operating incomeGAAP | $258.8M | – | – |
| Third quarter 2026 income tax provisionGAAP | 13,773 | – | – |
| Third quarter 2026 net incomeGAAP | $63.45M | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | $178.9M | – | – |
| Third quarter 2026 diluted EPSGAAP | $ 2.35 | – | Down 10% |
| Nine months ended September 30, 2026 diluted EPSGAAP | $ 6.22 | – | – |
| Third quarter 2026 adjusted net incomenon-GAAP | $103.7M | – | – |
| Third quarter 2026 Adjusted EPSnon-GAAP | $ 3.84 | – | Up 48% |
| Nine months ended September 30, 2026 Adjusted EPSnon-GAAP | $ 7.79 | – | – |
| Third quarter 2026 Adjusted EBITDAnon-GAAP | $153.7M | – | – |
| Third quarter 2026 Adjusted EBITDA Marginnon-GAAP | 15.2% | – | – |
| Nine months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $355.0M | – | – |
| Nine months ended September 30, 2026 Adjusted EBITDA Marginnon-GAAP | 11.9% | – | – |
| Third quarter 2026 net cash provided by operating activitiesGAAP | $190.4M | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | 32,679 | – | – |
| Cash and cash equivalents at September 30, 2026GAAP | $88.1M | – | – |
| Total debt at September 30, 2026GAAP | $852M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Corporate FinanceHigher success fees and realized bill rates, partially offset by lower demand for turnaround & restructuring and transactions services. | $424.4M | – | 4.8% |
| Forensic and Litigation ConsultingHigher realized bill rates, partially offset by lower demand for risk & investigations and data & analytics services. | $195.1M | – | 0.2% |
| Economic ConsultingHigher demand for non-merger and acquisition (“M&A”)-related antitrust and M&A-related antitrust services, partially offset by lower demand for financial economics services. | $189.3M | – | 9.3% |
| TechnologyHigher demand for M&A-related “second request” services. | $103.2M | – | 9.7% |
| Strategic CommunicationsHigher demand for public affairs and corporate reputation services. | $100.6M | – | 12.5% |
Full year 2026 outlook
- Revenuebetween $3.940 billion and $4.100 billion
- NoteEPS: between $7.55 and $8.05
- NoteAdjusted EPS: between $9.50 and $10.00
- NoteThe Company expects to record a fourth quarter 2026 special charge of approximately $7 million.
- NoteThe estimated combined special charge for full year 2026 is expected to be approximately $53 million.
- NoteActions taken in the third and fourth quarters of 2026 to align staffing with demand are expected to result in annualized cost savings of approximately $80 million in salary- and benefits-related and real estate-related costs.
- NoteThe Company estimates special charges will be approximately $1.55, and Extraordinary Litigation-Related Expenses will be an estimated $0.40.
Capital returns
- During the quarter ended September 30, 2026, the Company repurchased 523,588 shares of its common stock at an average price per share of $151.55 for a total cost of $79.4 million.
- As of September 30, 2026, approximately $264.7 million remained available for common stock repurchases under the Company’s stock repurchase program.
- Purchase and retirement of common stock, including excise tax, was (605,272) for the nine months ended September 30, 2026.
What drove it
- Third quarter record revenues increased $56.4 million, or 5.9%, driven by revenue growth across all business segments.
- Corporate Finance growth reflected higher success fees and realized bill rates.
- Economic Consulting benefited from higher demand for non-M&A-related antitrust and M&A-related antitrust services.
- Technology growth reflected higher demand for M&A-related “second request” services.
- Strategic Communications growth reflected higher demand for public affairs and corporate reputation services.
- Third quarter Adjusted EBITDA excluded the $46.0 million special charge and $4.5 million of Extraordinary Litigation-Related Expenses.
Concerns
- Third quarter net income decreased primarily due to a $46.0 million special charge and higher direct costs, SG&A expenses and interest expense.
- Forensic and Litigation Consulting revenue increased only 0.2%, while its Adjusted Segment EBITDA declined to $38.0 million from $42.6 million and its Adjusted Segment EBITDA margin declined to 19.5% from 21.9%.
- Corporate Finance revenue was partially offset by lower demand for turnaround & restructuring and transactions services.
- The Company reduced full-year 2026 EPS guidance to between $7.55 and $8.05 from between $8.70 and $9.30.
- The Company expects an additional fourth quarter 2026 special charge of approximately $7 million.
- Cash and cash equivalents were $88.1 million at September 30, 2026, while total debt was $852.0 million.
What to watch
- Execution of actions to align staffing with demand and the expected annualized cost savings of approximately $80 million.
- The fourth quarter 2026 special charge expected to be approximately $7 million.
- Whether full-year revenue falls within the reaffirmed range of between $3.940 billion and $4.100 billion.
- Demand trends in turnaround & restructuring, transactions services, risk & investigations, data & analytics, and financial economics services.
- The impact of higher compensation, SG&A expenses, direct costs and interest expense on GAAP profitability.
Balance sheet and cash flow
- Cash and cash equivalents were $88.1 million at September 30, 2026, compared to $146.0 million at September 30, 2025 and $163.7 million at June 30, 2026.
- Total debt was $852.0 million at September 30, 2026, compared to $510.0 million at September 30, 2025 and $1.020 billion at June 30, 2026.
- Net cash provided by operating activities was $190.4 million for the quarter ended September 30, 2026, compared to $201.9 million for the quarter ended September 30, 2025.
- Net cash provided by operating activities was 32,679 for the nine months ended September 30, 2026, compared to net cash used in operating activities of (207,624) for the nine months ended September 30, 2025.
- Net cash used in investing activities was (72,441) for the nine months ended September 30, 2026, including purchases of property and equipment and other of (30,340) and payment for tax equity investment of (42,101).
- Borrowings under revolving line of credit were 1,317,000, repayments under revolving line of credit were (1,130,000), and proceeds from issuance of term loan were 300,000 for the nine months ended September 30, 2026.
Analysis
FTI Consulting reported record third quarter revenues of $1.013 billion, up $56.4 million, or 5.9%, from the prior-year quarter. All five business segments grew. Corporate Finance remained the largest contributor at $424.4 million, supported by higher success fees and realized bill rates. Economic Consulting, Technology and Strategic Communications posted stronger growth rates of 9.3%, 9.7% and 12.5%, respectively, while Forensic and Litigation Consulting grew 0.2% as higher bill rates were largely offset by weaker demand in risk & investigations and data & analytics services.
Underlying profitability improved on the Company’s non-GAAP measures. Third quarter Adjusted EBITDA was $153.7 million and the Adjusted EBITDA Margin was 15.2%, compared with $130.6 million and 13.7% in the prior-year quarter. Adjusted EPS was $3.84 compared with $2.60. The result included record success fees and a lower effective tax rate, while the reported non-GAAP results excluded the $46.0 million special charge and $4.5 million of Extraordinary Litigation-Related Expenses.
GAAP earnings moved in the opposite direction. Net income was $63.4 million compared with $82.8 million, and diluted EPS was $2.35 compared with $2.60. The Company attributed the decline primarily to the special charge, higher direct costs, SG&A expenses and interest expense. The special charge included $45.5 million in salary- and benefits-related costs and $0.5 million of non-cash real estate-related costs. Segment margin trends were uneven: Corporate Finance, Economic Consulting, Technology and Strategic Communications increased Adjusted Segment EBITDA, while Forensic and Litigation Consulting declined to $38.0 million from $42.6 million.
Capital deployment included $79.4 million of third-quarter share repurchases, with approximately $264.7 million remaining under the authorization. Cash and cash equivalents were $88.1 million at September 30, 2026, and total debt was $852.0 million. The Company reaffirmed full-year revenue guidance of between $3.940 billion and $4.100 billion, reduced GAAP EPS guidance to between $7.55 and $8.05, and raised Adjusted EPS guidance to between $9.50 and $10.00. Management expects staffing and real estate actions to generate approximately $80 million of annualized savings, accompanied by an expected fourth-quarter special charge of approximately $7 million.
Management, verbatim
Our record results this quarter reflect the strength and breadth of our global platform. Though our results included certain favorable non-recurring items, such as record success fees and a lower effective tax rate, at their core, they were driven by the fact that in a world facing major change and disruption, our clients are increasingly turning to us for the depth and breadth of our capabilities.
Steven H. Gunby, CEO and Chairman of FTI Consulting
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- Dividend payments or dividend guidance were not reported.
- A full-year 2026 tax-rate guidance figure was not reported.
- Gross-margin, operating-expense and tax-rate guidance were not reported.
- Previous-release outlook was not provided, so no actual-versus-prior-guidance comparison is included.
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
FTI Consulting filed a Form 8‑K disclosing its Q3 2026 earnings and updated guidance.
Ticker impact
FTI Consulting reported Q3 2026 results with record $1.013B revenue and updated EPS guidance ranges, reaffirming revenue guidance.
likely upward pressure as investors price in the raised adjusted EPS guidance
Guidance raise is a fresh, material disclosure for a mid-cap consulting firm; market typically reacts positively to higher earnings outlook.
Market effects
May boost sentiment for the professional services and consulting sector.
North American consulting firms could see modest upside.
Limited to firms with similar business models; no broad macro impact.
Counterpoint
If the special charge and higher SG&A costs outweigh the guidance raise, the stock could face pressure.
Key entities
- companyFTI Consulting, Inc.
Professional services and consulting firm listed on NYSE.
