FTI Consulting Q3 revenue tops estimates

Overview

• US professional services firm's Q3 revenue up 6%, slightly beating analyst expectations

• Q3 adjusted EPS rose 48% to record, while GAAP EPS fell 10% due to special charge

• Company reaffirmed revenue guidance, raised adjusted EPS outlook, and lowered GAAP EPS guidance

Outlook

• FTI Consulting reaffirms 2026 revenue guidance of $3.94 bln to $4.10 bln

• Company lowers 2026 EPS guidance to $7.55-$8.05 from $8.70-$9.30

• FTI Consulting raises 2026 adjusted EPS guidance to $9.50-$10.00 from $9.10-$9.70

Result Drivers

• SEGMENT GROWTH - Co said Q3 revenue growth was driven by increases across all business segments

• SUCCESS FEES & BILL RATES - Corporate Finance segment revenue growth attributed to higher success fees and realized bill rates, partially offset by lower demand for turnaround & restructuring and transactions services

• SPECIAL CHARGE IMPACT - Net income and GAAP EPS were reduced by a $46 mln special charge related to aligning staffing with demand, as well as higher direct costs, SG&A, and interest expense

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "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 FTI Consulting, Inc. is $158.00, about 0.4% below its October 28 closing price of $158.59

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Oct 29 - Cognizant Q3 profit beats estimates on financial services segment, raises outlook

• Oct 29 - Perella Weinberg Q3 revenue beats estimates on fee events

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

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.)