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FTI Consulting (FCN)
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FTI Consulting (FCN) AI Stock Analysis

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FCN

FTI Consulting

(NYSE:FCN)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
$187.00
▲(22.49% Upside)
FTI Consulting's strong financial performance and positive earnings call results are the most significant factors driving the score. Technical indicators suggest a neutral trend, while valuation metrics indicate moderate attractiveness. Challenges in specific segments and cash flow management are areas to watch.
Positive Factors
Revenue Growth
The company's significant revenue growth reflects its ability to expand market reach and capitalize on demand for its consulting services, indicating a strong business model and market position.
Strategic Investments
Strategic investments in talent acquisition enhance FTI Consulting's capacity to deliver high-quality services, supporting long-term growth and competitive advantage in the consulting industry.
Record EPS Growth
Record EPS growth signifies strong operational efficiency and profitability, reinforcing the company's ability to generate shareholder value and sustain financial health.
Negative Factors
Cash Flow Performance
Weak cash flow performance, despite strong earnings, suggests potential challenges in liquidity management and converting income into cash, which could impact financial flexibility.
Economic Consulting Challenges
Declining revenue in the Economic Consulting segment indicates potential vulnerabilities in specific service areas, which could affect overall growth if not addressed.
Technology Segment Decline
The decline in the Technology segment highlights challenges in adapting to market shifts, potentially impacting FTI's ability to leverage technology-driven opportunities.

FTI Consulting (FCN) vs. SPDR S&P 500 ETF (SPY)

FTI Consulting Business Overview & Revenue Model

Company DescriptionFTI Consulting, Inc. (FCN) is a global business advisory firm headquartered in Washington, D.C. The company specializes in providing services in the areas of corporate finance and restructuring, forensic and litigation consulting, economic consulting, strategic communications, and technology. FTI Consulting operates across various sectors, including legal, financial services, healthcare, and energy, offering solutions that help clients manage complex challenges and enhance their operational performance.
How the Company Makes MoneyFTI Consulting generates revenue primarily through its consulting services, which are billed on a fee-for-service basis. The company's revenue model is built around several key streams: advisory fees from corporate finance and restructuring projects, retainer fees for ongoing strategic communications services, and success-based fees related to litigation consulting and forensic services. Additionally, FTI benefits from strategic partnerships with law firms and corporations, positioning itself as a preferred advisor in complex legal and financial matters. The company's ability to attract high-profile clients and engage in high-stakes projects, particularly during economic downturns or periods of crisis, further enhances its revenue potential.

FTI Consulting Earnings Call Summary

Earnings Call Date:Oct 23, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted a strong performance in key segments like Corp Fin and FLC, with record-breaking EPS growth. However, challenges in Economic Consulting and Technology segments due to decreased demand and increased costs posed significant concerns.
Q3-2025 Updates
Positive Updates
Record-Breaking EPS Growth
FTI Consulting reported record results with EPS and adjusted EPS of $2.60 per share, up over 40% from a year ago.
Strong Performance in Corp Fin and FLC
Corp Fin had another record quarter with an 18.6% increase in revenue and FLC's adjusted segment EBITDA increased by 62% year-to-date.
Significant Growth in Transactions
Transactions revenue was up 30% compared to Q3 2024, with significant growth in the size of engagements.
Successful Strategic Investments
FTI Consulting has made successful investments in growing their workforce, with 331 new joiners from university campuses, their largest class ever.
Negative Updates
Challenges in Economic Consulting
Economic Consulting segment revenue decreased 22% compared to the prior year quarter, primarily due to lower demand for antitrust services.
Decline in Technology Segment Revenue
Technology segment revenue decreased 14.8% compared to the prior year quarter, primarily due to lower demand for M&A-related second request services.
Increased Costs in Economic Consulting
The Economic Consulting segment faced increased costs for retaining professionals and attracting new talent, impacting profitability.
Company Guidance
During FTI Consulting's third quarter 2025 earnings call, the company updated its full-year guidance, reflecting stronger-than-expected performance. Revenue guidance was adjusted to range between $3.685 billion and $3.735 billion, while EPS was revised to a range of $7.62 to $8.12. Additionally, adjusted EPS is now anticipated to fall between $8.20 and $8.70. The company reported record results for the quarter, including an EPS of $2.60, a 41% increase from the prior year, and revenue of $956.2 million, up 3.3% year-over-year. Despite headwinds in the Economic Consulting and Technology segments, the Corporate Finance & Restructuring and Forensic and Litigation Consulting segments delivered record performances, with revenue increases of 18.6% and 15.4%, respectively. The company also highlighted its commitment to strategic investments and talent acquisition, positioning itself for sustained growth.

FTI Consulting Financial Statement Overview

Summary
FTI Consulting shows strong revenue growth and solid profitability, supported by a stable balance sheet with moderate leverage. However, cash flow performance indicates areas for improvement, particularly in converting income into cash.
Income Statement
85
Very Positive
FTI Consulting demonstrates strong revenue growth with a TTM revenue growth rate of 82.3%, indicating robust expansion. The company maintains healthy profitability margins, with a gross profit margin of 31.9% and a net profit margin of 7.2% in the TTM period. However, there is a slight decline in net profit margin compared to the previous year, suggesting some pressure on net earnings.
Balance Sheet
78
Positive
The company's balance sheet is stable with a manageable debt-to-equity ratio of 0.42 in the TTM period, reflecting moderate leverage. Return on equity is solid at 13.2%, indicating efficient use of equity capital. However, a decrease in stockholders' equity compared to the previous year could be a concern if it continues.
Cash Flow
70
Positive
FTI Consulting's cash flow performance shows some weaknesses, with a negative free cash flow growth rate of -10.6% in the TTM period. The operating cash flow to net income ratio is low at 0.13, indicating potential issues in converting income into cash. Despite this, the free cash flow to net income ratio remains strong at 89.3%, suggesting good cash generation relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.69B3.70B3.49B3.03B2.78B2.46B
Gross Profit1.18B1.18B1.14B962.93M860.72M788.56M
EBITDA409.91M405.81M419.93M353.34M363.33M325.30M
Net Income266.05M280.09M274.89M235.51M234.97M210.68M
Balance Sheet
Total Assets3.49B3.60B3.33B3.24B3.10B2.78B
Cash, Cash Equivalents and Short-Term Investments145.97M660.49M328.68M491.69M494.49M294.95M
Total Debt735.99M242.15M257.64M568.70M564.01M490.52M
Total Liabilities1.74B1.34B1.34B1.56B1.52B1.38B
Stockholders Equity1.75B2.26B1.98B1.68B1.58B1.40B
Cash Flow
Free Cash Flow96.13M397.72M174.98M135.47M286.82M292.20M
Operating Cash Flow107.69M395.10M224.46M188.79M355.48M327.07M
Investing Cash Flow-63.82M-10.16M-73.83M-60.06M-79.09M-60.12M
Financing Cash Flow-287.79M-15.38M-354.66M-106.01M-61.67M-360.05M

FTI Consulting Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price152.66
Price Trends
50DMA
161.91
Positive
100DMA
164.22
Negative
200DMA
166.35
Negative
Market Momentum
MACD
1.19
Negative
RSI
52.77
Neutral
STOCH
22.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCN, the sentiment is Neutral. The current price of 152.66 is below the 20-day moving average (MA) of 161.08, below the 50-day MA of 161.91, and below the 200-day MA of 166.35, indicating a neutral trend. The MACD of 1.19 indicates Negative momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 22.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$3.62B35.1825.79%1.67%4.90%-1.52%
75
Outperform
$5.17B21.2813.30%-0.95%-10.54%
75
Outperform
$1.18B21.6927.83%1.06%8.69%34.58%
73
Outperform
$2.87B28.0221.20%12.50%29.40%
65
Neutral
$1.53B15.679.88%0.70%-3.81%-7.05%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
$10.59B13.3374.72%2.15%2.42%3.05%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FCN
FTI Consulting
163.86
-38.15
-18.89%
BAH
Booz Allen
87.07
-91.07
-51.12%
CRAI
Cra International
183.02
-16.03
-8.05%
EXPO
Exponent
70.95
-30.54
-30.09%
HURN
Huron Consulting
167.14
38.36
29.79%
ICFI
Icf International
80.18
-87.32
-52.13%

FTI Consulting Corporate Events

Stock BuybackFinancial Disclosures
FTI Consulting Reports Record Q3 2025 Financial Results
Positive
Oct 24, 2025

FTI Consulting reported record financial results for the third quarter of 2025, with revenues reaching $956.2 million, a 3.3% increase from the previous year. The company also saw a significant rise in earnings per share, which increased by 41% to $2.60. The growth was driven by strong performance in the Corporate Finance & Restructuring and Forensic and Litigation Consulting segments, despite challenges in the Economic Consulting and Technology segments. Additionally, FTI Consulting’s Board authorized an additional $500 million for its stock repurchase program, bringing the total authorization to $2.3 billion. As of October 21, 2025, the company had repurchased shares worth approximately $1.7 billion, with $500 million remaining available for future repurchases.

The most recent analyst rating on (FCN) stock is a Hold with a $165.00 price target. To see the full list of analyst forecasts on FTI Consulting stock, see the FCN Stock Forecast page.

FTI Consulting Reports Strong Q3 2025 Earnings
Oct 24, 2025

FTI Consulting, Inc. is a global business advisory firm that provides a wide range of services to help organizations manage change, mitigate risk, and resolve disputes across financial, legal, operational, political, regulatory, reputational, and transactional areas. The company operates in five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications.

FTI Consulting’s Earnings Call Highlights Record EPS Amid Challenges
Oct 24, 2025

FTI Consulting’s latest earnings call painted a mixed picture, with strong performances in key segments like Corporate Finance & Restructuring (Corp Fin) and Forensic and Litigation Consulting (FLC) driving record-breaking earnings per share (EPS) growth. However, challenges in the Economic Consulting and Technology segments due to decreased demand and increased costs were significant areas of concern.

Executive/Board Changes
FTI Consulting Appoints Interim CFO Amid Leadership Change
Neutral
Sep 8, 2025

On September 4, 2025, FTI Consulting‘s Board of Directors appointed Paul Linton as Interim Chief Financial Officer, effective September 12, 2025, following Ajay Sabherwal’s resignation. Linton, who has been with the company since 2014 as Chief Strategy and Transformation Officer, will assume the CFO role without changes to his current compensation or any special arrangements.

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.

Business Operations and StrategyExecutive/Board Changes
FTI Consulting CFO Resignation Announced
Neutral
Aug 12, 2025

On August 12, 2025, FTI Consulting announced the voluntary resignation of its Chief Financial Officer, Ajay Sabherwal, effective September 12, 2025. This change in leadership may impact the company’s financial strategy and operations, potentially affecting stakeholders and the company’s positioning in the professional services industry.

The most recent analyst rating on (FCN) stock is a Hold with a $178.00 price target. To see the full list of analyst forecasts on FTI Consulting stock, see the FCN Stock Forecast page.

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.Date of analysis: Oct 28, 2025