Exponent, Inc. reported first‑quarter 2026 revenue of $166.3 million, up 14% year‑over‑year, and net income of $29.6 million, translating to earnings per share of $0.59. Net revenues before reimbursements rose 10% to $151.8 million, reflecting robust demand across the company’s multidisciplinary portfolio.
The company achieved a 76% utilization rate and an EBITDA margin of 28.4%, an increase from 27.3% in the same quarter a year earlier. The margin expansion is driven by higher utilization, stronger rate realization, and a favorable mix of high‑margin engagements in the engineering and scientific segment.
Revenue growth was concentrated in the engineering and scientific segment, which accounts for 85% of net revenues and grew 12% YoY, while the environmental and health segment, representing 15% of net revenues, grew 2%. The engineering segment’s performance was led by AI‑enabled user‑research studies for consumer‑electronics clients and risk‑management work for utilities, whereas the environmental and health segment benefited from increased dispute‑related and failure‑analysis work in construction, energy, and medical‑device sectors.
"Exponent delivered double‑digit growth in revenues and earnings during the first quarter, reflecting the strength of our multidisciplinary portfolio and increased demand for our specialized expertise across industries," said Dr. Catherine Corrigan, President and CEO. She added, "Growth was driven by proactive engagements, including user research studies for consumer electronics clients integrating AI into their devices, as well as risk management work for utility clients evaluating asset performance under extreme weather conditions. Reactive engagements also contributed to our growth, with increased dispute‑related and failure‑analysis demand across construction projects, energy facilities, and medical devices." Corrigan also noted that "the integration of AI and other advanced technologies into physical products and performance‑critical systems, combined with rising expectations for safety and reliability, is driving increased reliance on Exponent's specialized expertise."
The company reaffirmed its full‑year 2026 guidance, maintaining expectations for high single‑digit revenue growth and EBITDA margins in the 27.6%‑28.1% range. Management highlighted continued confidence in sustaining utilization and leveraging its PhD‑led talent model. The board approved an additional $50 million increase to the share‑repurchase program, and a leadership transition will see John Pye assume the role of President and Eric Anderson become Chief Financial Officer, with Rich Schlenker remaining Executive Vice President.
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