FTI Consulting (FCN) AI Stock Analysis

• Market Cap: $4.98B
• Dividend Yield: N/A
• Average Volume (3M): 367.92K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.41
• Revenue Growth: -0.95%
• EPS Growth: -10.54%
• Country: US
• Employees: 8,105
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 1.78
• Shares Outstanding: 30,581,898
• 10 Day Avg. Volume: 353,558
• 30 Day Avg. Volume: 367,920
• PEG Ratio: 2.47
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 34.35
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 4.40
• Enterprise Value/Ebitda: 11.35
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 9.28
• Revenue Forecast (FY): $3.96B

• Rating: 68 Neutral
• Price Target: $184.00 ▲(12.99% Upside)
• Action: Reiterated Date: 03/09/26
• Date: Action: Reiterated 03/09/26

The score is driven primarily by solid financial performance with durable revenue growth, tempered by margin compression and volatile/weak 2025 operating cash flow. Earnings call signals are net positive on guidance and demand, but near-term headwinds in Economic Consulting and higher SG&A constrain upside. Technicals are mixed with neutral momentum and a negative MACD, while valuation looks reasonable but not especially discounted.

Positive Factors

Durable Revenue Growth

FTI has delivered consistent top-line expansion over multiple years across its advisory lines, reflecting durable demand for fee-for-service expertise. Diverse offerings (CorpFin, FLC, Stratcom, Tech) and long-term client relationships support recurring engagements and pricing resilience over the next several quarters.

Consistent Earnings Execution

Management has repeatedly converted revenue into higher adjusted EPS, showing operational discipline and scalability. Record results alongside segment outperformance indicate the firm can generate earnings even while reinvesting, underpinning long-term cash returns and capacity to fund strategic hires and targeted investments.

Healthy Capital Efficiency

Substantial equity and double-digit ROE signal efficient use of capital and resilience to shocks. While leverage stepped up in 2025, historical debt ratios were moderate, so the balance sheet still supports ongoing investments and buybacks without immediate refinancing stress across a multi-month horizon.

Negative Factors

Economic Consulting Disruption

Compass Lexecon disruption materially depressed a historically higher‑margin practice, collapsing segment EBITDA. Management expects the segment to trough in Q1 and remain a drag into H1 2026, creating a structural profitability vulnerability until the practice is rebuilt and client flow normalizes.

Operating Cash Flow Volatility

Sharp decline in operating cash flow and one‑off loan issuances make cash generation uneven, reducing internal funding capacity. That volatility limits flexibility to sustain buybacks, absorb working capital swings, or invest opportunistically without increasing leverage or cutting discretionary spend in the medium term.

Margin Compression & Rising SG&A

FTI's EBITDA and net margins have trended lower versus earlier years, and management plans incremental SG&A spend in 2026 that will pressure margins further. Unless revenue mix or pricing offsets this, persistent margin compression could limit reinvestment capacity and constrain free cash flow expansion.

FTI Consulting Business Overview & Revenue Model

Company Description

FTI Consulting, Inc. provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide. The company operates through five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications. Its Corporate Finance & Restructuring segment provides business transformation, transactions, and turnaround and restructuring services. The company's Forensic and Litigation Consulting segment offers. construction and environmental solution, data and analytics, dispute, health solution, and risk and investigation services. Its Economic Consulting segment provides. antitrust and competition economic, financial economic, and international arbitration services. The company's Technology segment offers corporate legal operation; e-discovery and expertise; and information governance, privacy, and security services. Its Strategic Communications segment provides corporate reputation, financial communication, and public affairs services. The company serves aerospace and defense, agriculture, airlines and aviation, automotive and industrial, construction, energy, power and products, environmental solutions, financial services, healthcare and life sciences, hospitality, gaming and leisure, insurance, mining, private equity, public sector, real estate, retail and consumer products, telecom, media and technology, and transportation and logistics industries. The company was founded in 1982 and is headquartered in Washington, District of Columbia.

How the Company Makes Money

FTI Consulting generates revenue primarily through its consulting services, which are billed on a fee-for-service basis. The company has several key revenue streams, including fees from its financial consulting, economic consulting, and forensic and litigation consulting services. Additionally, FTI earns income from strategic communications and technology-related services. The firm's revenue is significantly bolstered by its ability to secure long-term contracts with clients, particularly in high-demand areas such as crisis management and regulatory compliance. FTI also benefits from strategic partnerships and alliances that enhance its service offerings and market reach, further contributing to its overall earnings.

FTI Consulting Financial Statement Overview

Summary

Steady multi-year revenue growth and healthy ROE support the score, but profitability has compressed (lower EBITDA and net margins over time). Cash generation is the key drag due to volatility and a sharp 2025 operating cash flow drop versus 2024, alongside a notable 2025 leverage step-up.

Income Statement

Revenue has grown steadily over the period (from ~$2.46B in 2020 to ~$3.79B in 2025), indicating durable demand. Profitability is solid but not expanding: gross margin has been stable around ~31–33%, while net margin has drifted down versus earlier years (about ~8.6% in 2020 to ~7.1% in 2025). EBITDA margin has also softened (roughly ~13.2% in 2020 to ~10.3% in 2025), suggesting cost pressure or mix shift. Net income is broadly stable to slightly higher over time, but 2025 shows lower net margin despite higher revenue, which caps the score.

Balance Sheet

Leverage appears manageable overall with debt-to-equity generally in a moderate range (about ~0.11–0.36 historically), though it rose meaningfully in 2025 (~0.34) from 2024 (~0.11), signaling a less conservative posture. Equity remains substantial (about ~$1.73B in 2025) relative to total assets (~$3.49B), and return on equity is healthy (roughly ~12%–16% across the years, ~15.6% in 2025), indicating solid capital efficiency. The key weakness is the step-up in leverage in the most recent year versus 2024, which reduces balance sheet flexibility if operating conditions weaken.

Cash Flow

Free cash flow conversion versus net income is a strength in the most recent year: free cash flow was slightly above net income in 2025 (free cash flow to net income ~1.03), and free cash flow growth rebounded sharply in 2025. However, cash flow generation has been volatile: operating cash flow fell substantially in 2025 (~$152M) versus 2024 (~$395M), and the cash flow support relative to profitability weakened in 2025 (operating cash flow coverage ~0.16 vs ~0.42 in 2024). Overall, cash generation is positive but uneven, keeping the score in the mid range.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.79B	3.70B	3.49B	3.03B	2.78B
Gross Profit	1.22B	1.18B	1.14B	962.93M	860.72M
EBITDA	441.65M	405.81M	419.93M	353.34M	363.33M
Net Income	270.87M	280.09M	274.89M	235.51M	234.97M
Balance Sheet
Total Assets	3.49B	3.60B	3.33B	3.24B	3.10B
Cash, Cash Equivalents and Short-Term Investments	265.09M	660.49M	328.68M	491.69M	494.49M
Total Debt	589.51M	242.15M	257.64M	568.70M	564.01M
Total Liabilities	1.76B	1.34B	1.34B	1.56B	1.52B
Stockholders Equity	1.73B	2.26B	1.98B	1.68B	1.58B
Cash Flow
Free Cash Flow	156.59M	397.72M	174.98M	135.47M	286.82M
Operating Cash Flow	152.13M	395.10M	224.46M	188.79M	355.48M
Investing Cash Flow	-58.53M	-10.16M	-73.83M	-60.06M	-79.09M
Financing Cash Flow	-510.48M	-15.38M	-354.66M	-106.01M	-61.67M

FTI Consulting Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 162.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCN, the sentiment is Negative. The current price of 162.84 is above the 20-day moving average (MA) of 162.74, below the 50-day MA of 171.25, and below the 200-day MA of 166.39, indicating a neutral trend. The MACD of -1.65 indicates Negative momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 68.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCN.

FTI Consulting Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPO	71 Outperform	$3.45B	33.69	26.13%	1.66%	4.90%	-1.52%
HURN	71 Outperform	$2.28B	28.72	21.03%	―	12.50%	29.40%
BAH	69 Neutral	$9.16B	13.00	81.85%	2.60%	2.42%	3.05%
FCN	68 Neutral	$4.98B	19.86	13.30%	―	-0.95%	-10.54%
CRAI	67 Neutral	$1.09B	24.31	26.10%	0.97%	8.69%	34.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ICFI	60 Neutral	$1.31B	17.06	9.11%	0.65%	-3.81%	-7.05%

FTI Consulting Corporate Events

FTI Consulting Names Eun Angela Nam as New CFO

FTI Consulting announced on March 9, 2026, that its board has elected Eun Angela Nam as Chief Financial Officer, with her employment beginning on May 1, 2026, and responsibility for all finance functions and the information technology function. She will join the Executive Committee from the firm’s New York office, while interim CFO Paul Linton will revert to his role as Chief Strategy and Transformation Officer after supporting the transition.

Nam brings a track record of leading finance teams through growth and capital markets transactions, most recently as CFO and Chief Accounting Officer of FTAI Aviation Ltd., where revenue rose from $708 million in 2022 to $2.5 billion in 2025. Her compensation package at FTI Consulting includes a $700,000 base salary, significant annual bonus and long-term incentives, and a $3 million four-year restricted stock award, signaling the firm’s commitment to bolstering its financial leadership as it continues to execute its growth strategy.

The most recent analyst rating on (FCN) stock is a Hold with a $179.00 price target. To see the full list of analyst forecasts on FTI Consulting stock, see the FCN Stock Forecast page.

FTI Consulting Reports Record 2025 Results, Issues 2026 Outlook

FTI Consulting reported record full-year 2025 revenues of $3.79 billion, up 2.4% year on year, and record EPS of $8.24, with Adjusted EPS rising 11% to $8.83, despite net income slipping to $270.9 million on higher direct costs, taxes, special charges and interest. Management highlighted this as the eleventh consecutive year of Adjusted EPS growth and eighth year of record revenues, supported by strength in Corporate Finance, Forensic and Litigation Consulting and Strategic Communications, partially offset by weakness in Economic Consulting and Technology.

For the fourth quarter of 2025, the firm posted record revenues of $990.7 million, up 10.7%, and EPS and Adjusted EPS of $1.78, driven by strong demand and higher rates in Corporate Finance and continued growth in Forensic, Strategic Communications and Technology, while Economic Consulting revenue fell 14.5% amid softer antitrust work. Cash from operations dropped sharply to $152.1 million for 2025, cash balances declined as the company stepped up forgivable loan issuances and compensation, and FTI Consulting returned $858.6 million to shareholders via buybacks, leaving $491.8 million of repurchase capacity as it also issued 2026 guidance on Feb. 26, 2026.

The most recent analyst rating on (FCN) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on FTI Consulting stock, see the FCN Stock Forecast page.

FTI Consulting Extends CEO Contract Amid Leadership Changes

On December 8, 2025, FTI Consulting extended the employment agreement of CEO Steven H. Gunby until June 6, 2029, with automatic one-year renewals unless terminated earlier. Additionally, the company announced the appointment of Ulrike Rabl as Chief Human Resources Officer, effective January 1, 2026, succeeding Holly Paul, who will transition to a senior advisory role. This leadership change is part of FTI Consulting’s strategy to continue its organic growth and enhance its global human capital strategy.

The most recent analyst rating on (FCN) stock is a Buy with a $194.00 price target. To see the full list of analyst forecasts on FTI Consulting stock, see the FCN Stock Forecast page.