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Fti Consulting (FCN)
NYSE:FCN

FTI Consulting (FCN) AI Stock Analysis

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FCN

FTI Consulting

(NYSE:FCN)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
$187.00
▲(5.31% Upside)
FTI Consulting's strong financial performance and positive earnings call are the most significant factors driving the score. Technical indicators support a stable outlook, while valuation metrics suggest moderate pricing. Challenges in cash flow and specific segments are areas to watch.
Positive Factors
Revenue Growth
Consistent revenue growth indicates robust market demand and effective client engagement, supporting long-term business expansion.
Strategic Investments
Investing in talent acquisition enhances service quality and innovation, strengthening competitive positioning and future growth potential.
Leadership Change
New leadership in HR can drive strategic human capital initiatives, fostering a more agile and effective organizational culture.
Negative Factors
Cash Flow Weakness
Weak cash flow conversion can limit financial flexibility and investment capacity, potentially hindering long-term operational efficiency.
Economic Consulting Challenges
Declining demand in key segments like Economic Consulting can reduce revenue streams and impact overall profitability.
Technology Segment Decline
A decline in the Technology segment suggests potential challenges in adapting to market needs, affecting future growth prospects.

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

FTI Consulting Business Overview & Revenue Model

Company DescriptionFTI 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 MoneyFTI 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 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 Flow96.13M397.72M174.98M135.47M286.82M292.22M
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
Positive
Last Price177.57
Price Trends
50DMA
169.55
Positive
100DMA
165.93
Positive
200DMA
165.33
Positive
Market Momentum
MACD
2.08
Positive
RSI
58.42
Neutral
STOCH
61.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCN, the sentiment is Positive. The current price of 177.57 is above the 20-day moving average (MA) of 175.83, above the 50-day MA of 169.55, and above the 200-day MA of 165.33, indicating a bullish trend. The MACD of 2.08 indicates Positive momentum. The RSI at 58.42 is Neutral, neither overbought nor oversold. The STOCH value of 61.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
$1.41B25.8827.83%0.97%8.69%34.58%
78
Outperform
$3.60B35.4925.79%1.66%4.90%-1.52%
76
Outperform
$5.41B22.5813.30%-0.95%-10.54%
75
Outperform
$3.17B31.1121.20%12.50%29.40%
74
Outperform
$1.75B17.869.88%0.65%-3.81%-7.05%
65
Neutral
$11.69B14.7174.72%2.60%2.42%3.05%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FCN
FTI Consulting
177.57
-16.12
-8.32%
BAH
Booz Allen
97.11
-36.27
-27.19%
CRAI
Cra International
217.29
36.37
20.10%
EXPO
Exponent
74.35
-16.96
-18.57%
HURN
Huron Consulting
185.58
58.03
45.50%
ICFI
Icf International
96.92
-31.55
-24.56%

FTI Consulting Corporate Events

Business Operations and StrategyExecutive/Board Changes
FTI Consulting Extends CEO Contract Amid Leadership Changes
Neutral
Dec 9, 2025

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.

Business Operations and Strategy
FTI Consulting Signs New London Office Lease Agreement
Neutral
Nov 26, 2025

On November 21, 2025, FTI Consulting entered into an agreement for leases with PNBJ I Limited for its London office, covering approximately 80,664 rentable square feet, with an option to expand to 102,828 square feet. The leases, expected to commence on September 25, 2027, have a 15-year term with a break option at the 10th year, and rental payments totaling approximately $115 million, subject to market reviews every five years.

The most recent analyst rating on (FCN) stock is a Buy with a $187.00 price target. To see the full list of analyst forecasts on FTI Consulting stock, see the FCN Stock Forecast page.

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.

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: Dec 09, 2025