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FTI Consulting
(NYSE:FCN)
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Rating:72Outperform
Price Target:
$189.00
▲(18.28% Upside)
Action:Reiterated
Date:07/30/26
The score reflects strong underlying financial quality (notably cash flow and consistent profitability) and a positive technical trend with the stock trading above key moving averages. The main offsets are earnings-call-driven margin and cost pressure (higher SG&A, litigation costs, and a GAAP EPS guidance cut) and a valuation that is fair but not clearly cheap, with no dividend yield support.
Positive Factors
Free Cash Flow Generation
FTI's FCF roughly matched or exceeded net income in recent periods with a sharp TTM rebound after a weaker 2025. Durable cash conversion supports debt service, buybacks, senior-hire investments and strategic M&A, increasing long-term financial flexibility and lowering funding risk.
Negative Factors
Margin Compression / EBITDA Decline
Adjusted EBITDA fell and margins compressed ~130bps year-over-year, reflecting weaker operating leverage. If higher direct costs and SG&A remain elevated, the consulting model's discretionary margin tailwind could be eroded, lowering long-term cash margins and reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
FTI's FCF roughly matched or exceeded net income in recent periods with a sharp TTM rebound after a weaker 2025. Durable cash conversion supports debt service, buybacks, senior-hire investments and strategic M&A, increasing long-term financial flexibility and lowering funding risk.
Read all positive factors
FTI Consulting (FCN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.17B
Dividend YieldN/A
Average Volume (3M)367.92K
Price to Earnings (P/E)18.4
Beta (1Y)0.31
Revenue Growth7.12%
EPS Growth15.93%
CountryUS
Employees8,124
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)8.19
Shares Outstanding27,611,574
10 Day Avg. Volume353,558
30 Day Avg. Volume367,920
Financial Highlights & Ratios
PEG Ratio4.41
Price to Book (P/B)3.21
Price to Sales (P/S)1.47
P/FCF Ratio35.49
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$176.00Price Target Upside10.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)9.28
Revenue Forecast (FY)$4.02B
FTI Consulting Business Overview & Revenue Model
Company Description
FTI Consulting, Inc. is a global advisory firm dedicated to assisting organizations in navigating significant transitions, mitigating potential risks, and resolving intricate disputes. The company structures its diverse expertise across five disti...
How the Company Makes Money
FTI Consulting primarily makes money by billing clients for professional services delivered by its consultants and experts, with revenue largely generated on a time-and-materials basis (hourly or daily bill rates) and, depending on the engagement,...
FTI Consulting Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presents a constructive operational and top-line picture — record quarterly revenues, strong segment growth (notably Tech, CorpFin transformation, and sequential Econ improvement), robust cash generation and aggressive share repurchases, and ongoing senior talent investments. Offsetting these positives are near-term margin pressures driven by higher SG&A and direct costs (including extraordinary litigation expenses), a year-over-year decline in adjusted EBITDA and margin compression, a modest lowering of GAAP EPS guidance, and uncertainty in certain regions (Middle East and short-term U.K. timing issues). Management characterized many issues as temporary and reaffirmed revenue guidance while trimming GAAP EPS guidance and flagging higher full-year SG&A.Positive Updates
Record Quarterly Revenue
Reported record Q2 revenues up 5.3% year-over-year; revenues excluding pass-through items rose 6.5%. Year-to-date revenues are up 7% (or 10% excluding Econ). Company reaffirmed full-year revenue guidance of $3.94B to $4.10B.
Negative Updates
Adjusted EBITDA Decline and Margin Compression
Adjusted EBITDA declined to $104.5M (10.5% of revenues) from $111.6M (11.8% of revenues) in the prior-year quarter, a fall of ≈ 6.3% in dollar terms and a margin compression of ~130 basis points.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Reported record Q2 revenues up 5.3% year-over-year; revenues excluding pass-through items rose 6.5%. Year-to-date revenues are up 7% (or 10% excluding Econ). Company reaffirmed full-year revenue guidance of $3.94B to $4.10B.
Read all positive updates
Company Guidance
FTI reaffirmed full‑year revenue guidance of $3.94–$4.10 billion while lowering GAAP EPS to $8.70–$9.30 (prior $8.90–$9.60) and targeting adjusted EPS of $9.10–$9.70; management now expects SG&A to be about $70 million higher versus 2025 (vs prior $60M outlook), with Q2 SG&A at $230.7M and Q3 SG&A expected roughly $12M lower. Year‑to‑date revenues are +7% (+10% ex‑Econ); Q2 revenues rose 5.3% (6.5% ex pass‑through) and adjusted EBITDA was $104.5M (10.5% margin) vs $111.6M (11.8%) a year ago. Q2 GAAP EPS was $1.99 (adjusted $2.16), WASO is 29.0M (vs 33.6M prior), Q2 included $6.6M of extraordinary litigation costs that reduced GAAP EPS by $0.17 (the company estimates a ~ $0.40 FY GAAP/adjusted EPS gap), net cash from operations was $152.3M, the firm repurchased 2.6M shares for $390.9M (avg $150.84) with ~$344M remaining, billable headcount is +3.2% YoY, 45 SMD/affiliate hires were announced YTD with ~270 graduates joining in Q3, and full‑year effective tax rate is guided to 21–23%.FTI Consulting Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.92B | 3.79B | 3.70B | 3.49B | 3.03B | 2.78B |
| Gross Profit | 1.25B | 1.22B | 1.18B | 1.14B | 962.93M | 860.72M |
| EBITDA | 422.82M | 441.65M | 405.81M | 419.93M | 353.34M | 363.33M |
| Net Income | 252.79M | 270.87M | 280.09M | 274.89M | 235.51M | 234.97M |
Balance Sheet | ||||||
| Total Assets | 3.53B | 3.49B | 3.60B | 3.33B | 3.24B | 3.10B |
| Cash, Cash Equivalents and Short-Term Investments | 163.75M | 265.09M | 660.49M | 328.68M | 491.69M | 494.49M |
| Total Debt | 1.27B | 626.72M | 242.15M | 257.64M | 568.70M | 564.01M |
| Total Liabilities | 2.20B | 1.76B | 1.34B | 1.34B | 1.56B | 1.52B |
| Stockholders Equity | 1.33B | 1.73B | 2.26B | 1.98B | 1.68B | 1.58B |
Cash Flow | ||||||
| Free Cash Flow | 415.65M | 156.59M | 397.72M | 174.98M | 135.47M | 286.82M |
| Operating Cash Flow | 403.92M | 152.13M | 395.10M | 224.46M | 188.79M | 355.48M |
| Investing Cash Flow | -87.29M | -58.53M | -10.16M | -73.83M | -60.06M | -79.09M |
| Financing Cash Flow | -301.77M | -510.48M | -15.38M | -354.66M | -106.01M | -61.67M |
FTI Consulting Technical Analysis
Negative
159.79
Price Trends
155.58
Negative
162.73
Negative
165.81
Negative
Market Momentum
-1.12
Positive
44.04
Neutral
11.70
Positive
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 159.79 is above the 20-day moving average (MA) of 158.77, above the 50-day MA of 155.58, and below the 200-day MA of 165.81, indicating a bearish trend. The MACD of -1.12 indicates Positive momentum. The RSI at 44.04 is Neutral, neither overbought nor oversold. The STOCH value of 11.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCN.
FTI Consulting Risk Analysis
FTI Consulting disclosed 38 risk factors in its most recent earnings report. FTI Consulting reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FTI Consulting Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.21B | 30.65 | 31.48% | 1.99% | 12.84% | 11.59% | |
77 Outperform | $2.42B | 22.40 | 25.53% | ― | 13.60% | 14.77% | |
74 Outperform | $1.64B | 18.64 | 8.57% | 0.70% | -7.89% | -16.13% | |
72 Outperform | $4.17B | 18.42 | 15.61% | ― | 7.12% | 15.93% | |
70 Outperform | $9.37B | 12.30 | 71.90% | 3.14% | -7.27% | -22.00% | |
65 Neutral | $1.06B | 22.17 | 24.76% | 1.30% | 11.46% | -9.16% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
FCN
FTI Consulting
152.68
-16.40
-9.70%
BAH
Booz Allen
78.40
-30.30
-27.87%
CRAI
Cra International
168.50
-22.90
-11.96%
EXPO
Exponent
67.64
-3.74
-5.24%
HURN
Huron Consulting
150.31
13.31
9.72%
ICFI
Icf International
89.58
-9.36
-9.46%
FTI Consulting Corporate Events
Business Operations and StrategyPrivate Placements and Financing
FTI Consulting Expands and Extends Revolving Credit Facility
Positive
Jul 1, 2026
FTI Consulting, Inc., a global expert advisory firm, entered into a third amendment and restatement of its senior unsecured credit facility on June 30, 2026, led by a syndicate of banks headed by Bank of America. The new agreement increases the co...
Executive/Board ChangesStock BuybackShareholder Meetings
FTI Consulting Expands Share Repurchase Authorization and Governance
Positive
Jun 5, 2026
FTI Consulting, Inc., the global expert services firm, held its 2026 Annual Meeting of Shareholders on June 3, 2026, where investors re-elected eight directors, ratified KPMG LLP as the company’s independent auditor for the year ending Decem...
Business Operations and StrategyStock BuybackFinancial Disclosures
FTI Consulting Posts Q1 Revenue Growth, Reaffirms 2026 Outlook
Neutral
May 1, 2026
FTI Consulting reported that first-quarter 2026 revenues rose 9.5% year on year to $983.3 million, driven by strong growth in its Corporate Finance, Strategic Communications and Technology segments, while Economic Consulting declined. Despite high...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.