FTI Consulting reported first‑quarter 2026 revenue of $983.3 million, a 9.5% year‑over‑year increase from $898.3 million in Q1 2025. Basic earnings per share were $1.90, up 9.2% from $1.74 in the prior year but $0.17 below the consensus estimate of $2.07. Adjusted EBITDA fell 8.9% to $96.8 million, or 9.8% of revenue, compared with $115.2 million (12.8% margin) in Q1 2025. Net income declined 6.8% to $57.6 million from $61.8 million a year earlier.
The revenue lift was driven by strong performance in Corporate Finance and Strategic Communications. Corporate Finance revenue rose 19.2% to $409.5 million, with an adjusted EBITDA margin of 21.6% versus 16.3% a year ago. Strategic Communications grew 18.4% to $103.0 million, and its margin improved to 21.3% from 14.3%. Technology revenue increased 5.3% to $102.3 million, with a stable 11.6% margin. In contrast, Economic Consulting revenue slipped 2.3% to $175.6 million and the segment posted a $7.3 million operating loss, while Forensic and Litigation Consulting revenue grew modestly 1.2% to $192.9 million but its margin contracted to 13.1% from 19.7%.
Margin compression in the quarter was largely a result of higher direct costs, increased selling, general and administrative expenses, and a higher effective tax rate. These cost pressures offset the revenue gains and contributed to the 6.8% decline in net income. The adjusted EBITDA margin fell from 12.8% to 9.8% year‑over‑year, reflecting the combined impact of cost inflation and the weaker Economic Consulting segment.
CEO Steven H. Gunby noted that the company delivered strong revenue growth, but higher tax and SG&A expenses tempered the bottom line. He added that the firm’s strategic investments are beginning to yield results, underscoring confidence in the long‑term trajectory of its high‑margin segments.
Management reaffirmed its full‑year 2026 guidance, projecting revenue of $3.94 billion to $4.10 billion and EPS of $8.90 to $9.60. The guidance aligns with analyst expectations of $4.07 billion revenue and $9.32 EPS, signaling continued confidence in the company’s growth prospects despite short‑term margin pressure.
Investor reaction was mixed. Some market participants highlighted the revenue beat and reaffirmed guidance as positive signals, while others expressed concern over the EPS miss and margin contraction. The divergence reflects a weighing of strong demand in Corporate Finance and Strategic Communications against the headwinds of higher costs and a weaker Economic Consulting segment.
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