Introduction#
FTI Consulting Inc. has released its earnings report for the first quarter of 2026, showcasing a mixed performance. While the company achieved higher revenues than expected, it fell short in earnings per share (EPS).
Company Performance#
In Q1 2026, FTI Consulting reported revenues of $983.3 million, exceeding its forecast of $959.95 million by 2.43%. This represents a 9.5% increase compared to the same quarter last year. The company demonstrated strong organic growth of 6.8%, despite facing challenges from currency fluctuations. However, net income decreased by 6.8% due to rising direct costs and selling, general, and administrative (SG&A) expenses, which affected overall profitability.
Financial Highlights#
- Revenue: $983.3 million, up 9.5% year-over-year
- Earnings per share (EPS): $1.90, which is a 9.2% increase from Q1 2025 but below the expected $2.07
- Net Income: $57.6 million, down 6.8% from the previous year
- Adjusted EBITDA: $96.8 million, a decline from $116.2 million in Q1 2025
Earnings vs. Forecast#
FTI Consulting's EPS of $1.90 missed the forecasted $2.07, resulting in an 8.21% negative surprise. Conversely, the revenue performance exceeded expectations, highlighting a contrast between strong sales and increased costs impacting earnings.
Market Reaction#
Following the earnings announcement, FTI Consulting's stock experienced a slight pre-market decline of 0.13%, trading at $179.10. This reaction reflects investor sentiment regarding the EPS miss, despite the positive revenue results. The stock remains stable within its 52-week range, indicating continued investor confidence. Analysts have adjusted their earnings forecasts downward for the upcoming period, although the company has shown a strong return over the last decade.
Outlook & Guidance#
FTI Consulting is focused on strategic growth, projecting future EPS of $9.32 for FY2026 and $11.25 for FY2027. The company plans to invest in high-margin segments and expand its service offerings to position itself for long-term success.