Key Highlights

  • Adjusted EPS of USD 3.84 rose 48% year over year and topped the consensus estimate of USD 2.74.
  • GAAP diluted EPS was USD 2.35 after a USD 46.0 million special charge tied to targeted headcount actions.
  • Revenue of USD 1.01 billion grew 6% from USD 956.2 million, in line with the USD 1.01 billion consensus estimate.
  • Adjusted EBITDA of USD 153.7 million rose 18%, and the Margin improved 150 basis points to 15.2%.

FTI Consulting, Inc. (NYSE:FCN) reported third quarter 2026 adjusted Earnings Per Share of USD 3.84, well above a consensus estimate of USD 2.74 and up 48% from USD 2.60 a year earlier. GAAP diluted EPS was USD 2.35 compared with USD 2.60, as a USD 46.0 million special charge and litigation-related expenses reduced the GAAP figure by USD 1.36 and USD 0.13 per share. Revenue of USD 1.01 billion was in line with the consensus estimate of USD 1.01 billion and rose 6% from USD 956.2 million, passing USD 1 billion for the first time.

Chief Executive Officer Steve Gunby said all five segments grew and added that the quarter benefited from unusually high success fees and a lower tax rate.

Segment Strength and the Headcount Charge

Corporate Finance and Restructuring posted record adjusted segment EBITDA of USD 102.8 million, up 7%, on revenue growth of 5% and record success fees of USD 40.7 million, including a large fee tied to a Loan portfolio sale for the Federal Reserve Bank of Boston. Forensic and Litigation Consulting delivered record revenue on record bill rates despite lower volumes, though adjusted segment EBITDA slipped to USD 38 million from USD 42.6 million. Economic Consulting revenue rose 9% and its adjusted segment EBITDA grew USD 18.5 million. Technology revenue gained 10% and Strategic Communications 13%.

The special charge comprised USD 45.5 million of salary and benefits costs and USD 0.5 million of non-cash real estate costs, with actions affecting about 4% of employees. The chief financial officer said the plan concluded in the fourth quarter with a further estimated charge of USD 7 million and annualized savings of approximately USD 80 million. Net Income was USD 63.4 million compared with USD 82.8 million, and selling, general and administrative expense rose to USD 214.4 million from USD 199.5 million.

Guidance Raised, With Slower Markets Flagged

Full year revenue guidance of USD 3.94 billion to USD 4.10 billion was reaffirmed. Adjusted EPS guidance now stands at USD 9.50 to USD 10.00, up from USD 9.10 to USD 9.70, and GAAP EPS guidance at USD 7.55 to USD 8.05. The company projects selling, general and administrative expense of about USD 70 million above 2025, a fourth quarter effective tax rate near 23% and a full year rate near 22%.

Management flagged several cautions. Economic Consulting benefited from one off items such as lower bad debt, and fourth quarter segment EBITDA is projected closer to the second quarter level. Volume is down in restructuring, M&A and regulatory work heading into a seasonally slower period, and announced deal volume slowed notably in the third quarter.

The company repurchased about 524,000 shares for USD 79.4 million during the quarter, and USD 264.7 million remains under the program. Total Debt of USD 852 million compares with USD 1 billion at June 30, 2026, after a USD 168 million paydown.

Signposts for the Fourth Quarter

Four items stand out. The USD 7 million fourth quarter special charge and the approximately USD 80 million of annualized savings measure the cost program. Economic Consulting segment EBITDA, guided closer to the second quarter level, tests how much of the third quarter gain came from one off items.

Success fees are a third reference, with USD 40.7 million in Corporate Finance against a first half quarterly average of USD 20 million. Billable headcount, up 1.8% year over year, completes the list.