FTI Consulting tops Q3 estimates, raises 2026 profit outlook

FTI Consulting (FCN) said on Oct. 29 that third-quarter adjusted earnings were $3.84 per share, topping the $2.77 consensus estimate compiled by Finnhub. Revenue reached $1.01 billion, in line with the $1.02 billion consensus estimate compiled by Finnhub.

The results include a $46.0 million special charge tied to a plan to align staffing with demand. Net income was $63.4 million, compared with $82.8 million a year earlier.

Here's how the company did:

• Adjusted EPS: $3.84 vs. $2.60 a year earlier, topping the $2.77 consensus estimate compiled by Finnhub
• EPS: $2.35 vs. $2.60 a year earlier
• Revenue: $1.01 billion vs. $956.2 million a year earlier, in line with the $1.02 billion consensus estimate compiled by Finnhub
• Adjusted EBITDA: $153.7 million vs. $130.6 million a year earlier

FTI Consulting is a global expert firm for organizations facing crisis and transformation, with more than 8,200 employees in 32 countries and territories.

Steven H. Gunby, CEO and Chairman of FTI Consulting, said, “Our record results this quarter reflect the strength and breadth of our global platform.” He added that the results also included certain favorable non-recurring items, such as record success fees and a lower effective tax rate.

2026 guidance

The company is reaffirming its full-year 2026 revenue guidance of $3.940 billion to $4.100 billion. It now expects adjusted EPS of $9.50 to $10.00, up from the prior range of $9.10 to $9.70.

It now expects EPS of $7.55 to $8.05, down from the prior range of $8.70 to $9.30. The gap reflects expected special charges of about $1.55 per share and about $0.40 per share of Extraordinary Litigation-Related Expenses, which relate to its case against Jonathan M. Orszag and others.

Staffing actions and charges

The company said it terminated approximately 4% of its more than 8,200 employees across the third and fourth quarters of 2026. Affected employees were notified by Oct. 29, and they will be released subject to notice periods.

In the third quarter it recorded a special charge of $46.0 million, including $45.5 million in salary and benefits costs and $0.5 million in non-cash real estate costs. It expects a fourth-quarter special charge of about $7 million, and it expects annualized savings of about $80 million.

Segment results

Corporate Finance revenue rose 4.8% to $424.4 million, driven by higher success fees and realized bill rates. Forensic and Litigation Consulting revenue rose 0.2% to $195.1 million.

Economic Consulting revenue rose 9.3% to $189.3 million, and Technology revenue rose 9.7% to $103.2 million. Strategic Communications revenue rose 12.5% to $100.6 million.

Cash and capital returns

Operating cash flow was $190.4 million, compared with $201.9 million a year earlier. The company repurchased 523,588 shares at an average price of $151.55, for a total of $79.4 million. About $264.7 million remained available under its repurchase program at the end of the quarter.

Total debt was $852.0 million at Sept. 30, down from $1.020 billion at June 30 and up from $510.0 million a year earlier. Net income rose in each of the last three quarters, from $54.5 million in the fourth quarter of 2025 to $63.4 million in the third quarter of 2026, according to its SEC filings.