FTI Consulting Q2 profit misses on higher direct costs

FTI Consulting

30/07/2026 12:51

Overview
US consulting firm's Q2 revenue rose 5.3% yr/yr, slightly missing analyst expectations
Adjusted EPS for Q2 missed analyst expectations
Company repurchased $390.9 mln of its shares during the quarter

Outlook
FTI Consulting reaffirms 2026 revenue guidance of $3.94 bln to $4.10 bln
Company updates 2026 EPS guidance to $8.70-$9.30, down from $8.90-$9.60
FTI Consulting introduces 2026 adjusted EPS guidance of $9.10-$9.70

Result Drivers
CORPORATE FINANCE GROWTH - Revenue gains in Corporate Finance were driven by higher realized bill rates for transactions, transformation and turnaround & restructuring services, increased demand for transformation services, and higher success fees
TECHNOLOGY SEGMENT DEMAND - Higher demand for M&A-related 'second request' services boosted Technology segment revenue
COST PRESSURES - Higher direct costs, SG&A expenses, and interest expense weighed on net income

Company press release: ID:nGNX1X4JBy

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$993.50 mln
$997.64 mln (3 Analysts)
Q2 Adjusted EPS
Miss
$2.16
$2.26 (3 Analysts)
Q2 EPS
 
$1.99
 
*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 $168.45, about 1.2% below its July 29 closing price of $170.42
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads
July 28 - Huron Consulting Q2 revenue before reimbursable expenses rises 16%
July 29 - Moelis Q2 adjusted revenue rises driven by higher average fees
July 29 - Houlihan Lokey Q1 revenue falls 15% driven by Middle East conflict

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.)