Fti Consulting (FCN)
NYSE:FCN
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FTI Consulting
(NYSE:FCN)
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Rating:72Outperform
Price Target:
$171.00
▼(-4.74% Downside)
Action:Reiterated
Date:05/01/26
FCN’s score is driven primarily by solid financial performance (strong revenue trajectory and improved operating profitability, with acceptable leverage) and a constructive but not unambiguously positive earnings update (maintained guidance and strong segments offset by margin compression and Economic Consulting weakness). Technicals are mixed/neutral and valuation is mid-range with no dividend yield provided, keeping the overall score in the low-70s.
Positive Factors
Revenue Growth Momentum
Sustained top‑line expansion (Q1 revenue +9.5% YoY) and reaffirmed full‑year guidance indicate durable client demand across restructuring, transactions and other advisory work. Persistent revenue growth supports capacity investments and amortizes fixed costs, underpinning longer‑term profit recovery.
Negative Factors
Margin Compression
Material year‑over‑year contraction in adjusted EBITDA margin reflects higher compensation, direct costs and legal expenses. If elevated pay and SG&A persist as management hires and rebuilds capacity, margins may remain pressured for multiple quarters, limiting operating leverage despite revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Momentum
Sustained top‑line expansion (Q1 revenue +9.5% YoY) and reaffirmed full‑year guidance indicate durable client demand across restructuring, transactions and other advisory work. Persistent revenue growth supports capacity investments and amortizes fixed costs, underpinning longer‑term profit recovery.
Read all positive factors
FTI Consulting (FCN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.66B
Dividend YieldN/A
Average Volume (3M)367.92K
Price to Earnings (P/E)24.1
Beta (1Y)0.39
Revenue Growth5.60%
EPS Growth14.32%
CountryUS
Employees8,105
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)8.51
Shares Outstanding30,144,043
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 Cap1.00
Enterprise Value/Revenue1.21
Enterprise Value/Gross Profit3.79
Enterprise Value/Ebitda10.49
Forecast
1Y Price Target
$174.50Price Target Upside-2.79% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)9.28
Revenue Forecast (FY)$4.03B
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 C...
How the Company Makes Money
FTI Consulting primarily makes money by billing clients for professional services delivered by its consultants and other specialists across its business segments. Revenue is largely generated from fee-based engagements that may be priced on a time...
FTI Consulting Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call communicated a generally positive operational story: company revenues grew 9.5% YoY with standout performance in Corporate Finance and Strategic Communications, solid cash generation improvement and continued share buybacks and hiring to expand capabilities. Offsetting these positives were meaningful margin compression at the consolidated level, a notable earnings drag and multi-quarter rebuild required in Economic Consulting (Compass Lexecon), higher SG&A and direct costs, and a temporary rise in net debt. Management maintained full-year guidance and emphasized long-term opportunity through talent investments, but near-term profitability and Compass Lexecon remediation are key risks to monitor.Positive Updates
Company-wide Revenue Growth
Q1 2026 revenues of $983.3M, up $85.1M or 9.5% YoY (ex-FX increase of $60.8M or 6.8%). Company grew close to double-digit revenue this quarter and maintained full-year 2026 guidance of $3.94B–$4.10B.
Negative Updates
Economic Consulting (Compass Lexecon) Drag
Economic Consulting revenues $175.6M, down 2.3% YoY (ex-FX -5.7%); segment operating loss of $7.3M vs operating income $12.1M prior year. Adjusted segment EBITDA was a loss of $5.9M vs $14.4M (8.0% of revenues) prior year. Management noted multi-quarter work required to rebuild this business.
Read all updates
Q1-2026 Updates
Positive
Negative
Company-wide Revenue Growth
Q1 2026 revenues of $983.3M, up $85.1M or 9.5% YoY (ex-FX increase of $60.8M or 6.8%). Company grew close to double-digit revenue this quarter and maintained full-year 2026 guidance of $3.94B–$4.10B.
Read all positive updates
Company Guidance
FTI said it is maintaining 2026 guidance of $3.94–$4.10 billion in revenues and $8.90–$9.60 in EPS while targeting a full‑year effective tax rate of 22–24%; that reflects Q1 results of $983.3 million revenue (up 9.5% YoY), net income $57.6 million, EPS $1.90 on a 30.3 million WASO, adjusted EBITDA of $96.8 million (9.8% margin), a Q1 effective tax rate of 26.6%, direct costs of $676.5 million and SG&A of $222.3 million (22.6% of revenues). Management cautioned Compass Lexecon will need multiple quarters to recover, reiterated continued senior hiring (29 SMD/affiliate hires YTD; 85 senior hires in 2025) and planned increased junior hiring in H2, warned SG&A for 2026 is expected to be about $60 million higher than 2025 with Q2 the SG&A peak (~$5 million above Q1), and noted balance‑sheet actions (repurchased 787,098 shares for $126.8 million with ~$354.9 million remaining authorization and net debt of $556.7 million at 3/31/26).FTI Consulting Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
76
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.87B | 3.79B | 3.70B | 3.49B | 3.03B | 2.78B |
| Gross Profit | 1.23B | 1.22B | 1.18B | 1.14B | 962.93M | 860.72M |
| EBITDA | 445.27M | 441.65M | 405.81M | 419.93M | 353.34M | 363.33M |
| Net Income | 266.68M | 270.87M | 280.09M | 274.89M | 235.51M | 234.97M |
Balance Sheet | ||||||
| Total Assets | 3.51B | 3.49B | 3.60B | 3.33B | 3.24B | 3.10B |
| Cash, Cash Equivalents and Short-Term Investments | 198.28M | 265.09M | 660.49M | 328.68M | 491.69M | 494.49M |
| Total Debt | 214.96M | 589.51M | 242.15M | 257.64M | 568.70M | 564.01M |
| Total Liabilities | 1.84B | 1.76B | 1.34B | 1.34B | 1.56B | 1.52B |
| Stockholders Equity | 1.66B | 1.73B | 2.26B | 1.98B | 1.68B | 1.58B |
Cash Flow | ||||||
| Free Cash Flow | 318.12M | 156.59M | 397.72M | 174.98M | 135.47M | 286.82M |
| Operating Cash Flow | 307.32M | 152.13M | 395.10M | 224.46M | 188.79M | 355.48M |
| Investing Cash Flow | -51.35M | -58.53M | -10.16M | -73.83M | -60.06M | -79.09M |
| Financing Cash Flow | -219.68M | -510.48M | -15.38M | -354.66M | -106.01M | -61.67M |
FTI Consulting Technical Analysis
Negative
179.50
Price Trends
171.00
Negative
171.25
Negative
168.05
Negative
Market Momentum
-7.06
Positive
38.76
Neutral
53.02
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 179.5 is above the 20-day moving average (MA) of 165.01, above the 50-day MA of 171.00, and above the 200-day MA of 168.05, indicating a bearish trend. The MACD of -7.06 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 53.02 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.66B | 24.15 | 15.14% | ― | 5.60% | 14.32% | |
72 Outperform | $2.82B | 28.02 | 27.94% | 1.66% | 7.82% | 4.63% | |
68 Neutral | $1.24B | 14.51 | 8.35% | 0.65% | -9.45% | -20.88% | |
66 Neutral | $9.34B | 13.00 | 81.85% | 2.60% | -3.13% | 0.34% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.74B | 23.29 | 21.83% | ― | 11.79% | -13.03% | |
60 Neutral | $956.59M | 24.15 | 23.64% | 0.97% | 10.50% | -3.09% |
* Industrials Sector Average
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FTI Consulting Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
FTI Consulting Adds $300 Million Incremental Term Loan Facility
Positive
Mar 18, 2026
On March 17, 2026, FTI Consulting, Inc. amended its existing credit agreement to add a new $300 million incremental term loan facility with a syndicate of lenders, arranged by Bank of America, N.A. as administrative agent. The term loan, which mat...
Business Operations and StrategyExecutive/Board Changes
FTI Consulting Names Eun Angela Nam as New CFO
Positive
Mar 9, 2026
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. Sh...
Business Operations and StrategyStock BuybackFinancial Disclosures
FTI Consulting Reports Record 2025 Results, Issues 2026 Outlook
Positive
Feb 27, 2026
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 cha...
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.