Business advisory firm FTI Consulting (NYSE: FCN) met Wall Street’s revenue expectations in Q3 2026, with sales up 5.9% year on year to $1.01 billion. The company’s full-year revenue guidance of $4.02 billion at the midpoint came in 0.5% above analysts’ estimates. Its non-GAAP profit of $3.84 per share was 40% above analysts’ consensus estimates.
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FTI Consulting (FCN) Q3 2026 highlights:
- Revenue $1.01 billion vs S&P analysts’ estimates of $1.01 billion (5.9% year-on-year growth, in line)
- Adjusted EPS $3.84 vs S&P analysts’ estimates of $2.74 (40% beat)
- Adjusted EBITDA $153.7 million vs analyst estimates of $123.3 million (15.2% margin, 24.6% beat)
- Revenue guidance The company reconfirmed its revenue guidance for the full year of $4.02 billion at the midpoint
- Adjusted EPS guidance Management raised its full-year adjusted EPS guidance to $9.75 at the midpoint, a 3.7% increase
- Operating margin 8.9%, down from 12.3% in the same quarter last year
- Market capitalization $4.84 billion
StockStory’s take
FTI Consulting’s third quarter results were greeted positively by the market, reflecting a combination of segment-wide revenue growth and a return to higher profitability. Management attributed the quarter’s outperformance to a resurgence in its Compass Lexecon business, record success fees in its corporate finance segment, and robust demand for event-driven and antitrust services. CEO Steve Gunby emphasized that, while certain one-time factors such as unusually high success fees and a lower tax rate contributed to the results, the underlying improvement signals a resumption of the company’s pre-disruption growth trajectory. Gunby noted, “Even with all the adjustments I could make, our performance this quarter ended up powerful.”
Looking forward, FTI Consulting’s updated guidance is shaped by the expectation that recent headwinds, particularly in its Compass Lexecon segment, are now largely behind it. Management highlighted ongoing investments in senior talent and targeted cost reductions as key factors supporting future growth. CFO Angela Nam stated that the company’s cost-saving actions should yield approximately $80 million in annualized benefits, positioning FTI to capitalize on complex client needs such as regulatory investigations, AI-related risk, and restructuring. Management cautioned that not all of the quarter’s margin gains are repeatable but believes the business is structurally better positioned for sustained performance.
Key insights from management’s remarks
Management cited the reversal of recent headwinds in its Compass Lexecon segment, record success fees in corporate finance, and discipline in cost management as pivotal to the quarter’s results.
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Compass Lexecon recovery: The Compass Lexecon segment, which had previously weighed on group profitability, returned to contributing positively this quarter. Management described the drag from this segment as “no longer weighing year-on-year,” with CEO Steve Gunby noting that while a full rebound to historic profitability will take time, the underlying disruption is resolved.
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Record corporate finance success fees: Record success fees in the corporate finance segment, particularly in the transactions practice, provided a significant boost to margins. A notable example was a large fee related to the sale of a loan portfolio for the Federal Reserve Bank of Boston. Even excluding this outsized event, management noted a sustained increase in success fee averages versus prior years.
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Billable headcount and talent investments: FTI maintained a focus on hiring and retaining senior professionals, bringing on approximately 270 campus graduates and promoting 100 senior managing directors over the past year. The company’s low-leverage, expert-based model underpins its ability to secure complex, high-value client mandates.
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Targeted cost-saving actions: Management undertook headcount reductions—primarily outside the U.S. and in underperforming business lines—resulting in a third quarter special charge. These targeted actions are projected to generate $80 million in annualized cost savings, with the majority of affected employees expected to depart by year-end.
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Strength in event-driven and antitrust services: Demand for event-driven services, such as crisis management, cyber, M&A, and regulatory investigations, was strong across corporate finance, strategic communications, and technology segments. The company continues to support clients on AI-related risks and high-profile antitrust matters globally.
Drivers of future performance
Management expects the company’s forward momentum to be driven by cost discipline, talent investments, and a focus on high-value client work amid evolving market needs.
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Sustained demand for complex expertise: FTI Consulting anticipates that client demand for high-value advisory—especially around regulatory, crisis, and AI-driven risks—will remain robust. The company sees opportunities in supporting investigations, antitrust, and event-driven mandates, even as some markets experience lower volumes.
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Cost savings from restructuring: Recent headcount actions are expected to deliver approximately $80 million in annualized cost reductions, which management believes will help offset slower growth in certain regions and services. These savings should support margin stability, although some one-time benefits from Q3 are not expected to recur.
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Continued investment in senior talent: FTI plans to keep investing in the recruitment and development of senior experts, viewing this as critical to maintaining its reputation for handling the most complex assignments. Management is cautious on the pace of recovery in the Compass Lexecon segment, expecting gradual improvement but not an immediate return to historical profitability.
Catalysts in upcoming quarters
Looking ahead, the StockStory team will monitor (1) the sustained impact of cost reduction measures on operating margins, (2) the pace of recovery and client demand in the Compass Lexecon segment, and (3) FTI Consulting’s ability to win high-value, event-driven mandates in areas such as AI risk, regulatory investigations, and crisis management. Progress in senior talent acquisition and retention will also be a key indicator of future growth.
FTI Consulting currently trades at $184.54, up from $159.10 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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