Exponent Q3 revenue before reimbursements rises; raises 2026 outlook

Overview

• US engineering consulting firm's fiscal Q3 revenue before reimbursements grew 12% yr/yr

• Q3 net income and diluted EPS rose yr/yr

• Growth driven by user research and dispute-related services in key industries

Outlook

• Exponent raises full-year 2026 revenue growth guidance to 10%-11% over 2025

• Company expects full-year 2026 EBITDA to be 28.0%-28.3% of revenues before reimbursements

• Exponent anticipates Q4 2026 revenue growth of 8%-10% and EBITDA margin of 26.3%-26.8%

Result Drivers

• USER RESEARCH - Co said user research studies were a strong contributor to Q3 growth as clients sought to understand technology interactions

• DISPUTE-RELATED SERVICES - Increased demand for dispute-related and failure analysis work in chemical, consumer products and transportation industries supported Q3 results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Exponent, Inc. is $72.00, about 6.6% below its October 28 closing price of $77.11

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads

• Oct 28 - Tyler Technologies Q3 revenue rises on public sector demand

• Oct 28 - Houlihan Lokey Q2 results beat estimates on higher transaction fees

• Oct 29 - FTI Consulting Q3 revenue tops estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)