Exponent Q2 revenue beats estimates, raises FY revenue outlook

Exponent

30/07/2026 21:24

Overview
Engineering consulting firm's fiscal Q2 revenue grew 21% yr/yr, beating analyst expectations
Net income and EPS rose yr/yr on higher demand across AI, utilities, and dispute services
Company increased stock repurchase program by $50 mln

Outlook
Exponent sees Q3 revenues before reimbursements growing 8% to 10%
Company expects Q3 EBITDA to be 28.0% to 28.5% of revenues before reimbursements
Exponent raises full-year guidance, sees revenues before reimbursements up 9% to 10%
Company expects 2026 EBITDA to be 27.8% to 28.1% of revenues before reimbursements

Result Drivers
AI-ENABLED PRODUCT DEMAND - Co said proactive work grew due to increased demand for user research studies as clients accelerated development of AI-enabled products across diverse hardware and applications
UTILITY SECTOR ENGAGEMENTS - Risk management and infrastructure-related work in the utility sector supported proactive activity
DISPUTE-RELATED SERVICES - Reactive work increased, driven by demand for dispute-related expertise from consumer products, chemicals, and transportation industries

Company press release: ID:nGNX8nnPwV

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$171.60 mln
$147.55 mln (4 Analysts)
Q2 EPS
 
$0.60
 
Q2 Net Income
 
$29.40 mln
 
Q2 EBITDA
 
$42.70 mln
 

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 $82.50, about 25.3% above its July 29 closing price of $65.85
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 28 three months ago

Reuters Recommended Reads
July 28 - Huron Consulting Q2 revenue before reimbursable expenses rises 16%
July 30 - FTI Consulting Q2 profit misses on higher direct costs
July 29 - Parsons Q2 revenue misses estimates on portfolio restructuring charges

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.)