Earnings Overview#

Houlihan Lokey has released its fourth-quarter earnings for fiscal year 2026, reporting an adjusted earnings per share (EPS) of $1.63. This figure fell short of the forecasted EPS of $1.79. Despite this earnings miss, the company's stock rose by 1.15% in aftermarket trading, reaching $151.89, indicating that investors still have confidence in the company's long-term strategy.

Financial Performance#

The company reported revenues of $636 million for Q4 2026, which was below the expected $686.3 million. However, it achieved a record annual revenue of $2.6 billion, marking a 10% increase from the previous year. Additionally, Houlihan Lokey increased its quarterly dividend by 17%, reflecting strong cash flow and confidence in its financial health.

Key Financial Highlights#

  • Q4 Revenue: $636 million, missing the forecast by 7.38%.
  • Earnings per Share: $1.63, below the forecast of $1.79 by 8.94%.
  • Annual Revenue: $2.6 billion, a 10% year-over-year increase.
  • Annual Adjusted EPS: $7.56, up 20% from the previous year.

Market Reaction and Future Outlook#

Following the earnings announcement, Houlihan Lokey's stock saw a modest increase, suggesting that investors are optimistic about the company's future despite the quarterly misses. The stock is currently trading within a range of its 52-week high of $211.78 and low of $134.41, indicating some volatility.

Looking ahead, for fiscal year 2027, Houlihan Lokey has set ambitious targets, projecting an EPS of $8.24 and revenues of approximately $2.99 billion. The company aims to maintain its adjusted compensation expense ratio at 61.5% and anticipates continued growth in its Capital Solutions business, which has become a key revenue driver.

Executive Insights#

CEO Scott Beattie emphasized the strength of their diversified business model and strategic investments for future growth. CFO Lindsey Albrecht highlighted the importance of operational efficiency and disciplined expense management in driving profitability.