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.”
Is now the time to buy FCN? Find out in our full research report (it’s free for active Edge members).
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 $4.88 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from FTI Consulting’s Q3 earnings call
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Tobey Sommer (Truist): asked about the quality and durability of the quarter’s earnings, especially the distinction between GAAP and adjusted EPS. CEO Steve Gunby clarified that most special charges are non-recurring and expects GAAP and adjusted earnings to align going forward.
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Tobey Sommer (Truist): inquired about the trajectory for Compass Lexecon’s recovery. Gunby responded that while the major drag is over, a full return to historical profitability will be gradual, likely taking several years.
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Tobey Sommer (Truist): questioned the impact of forgivable loans on future margins. Gunby explained that the large increase was a crisis response and that future amortization will likely be similar to this year’s, barring significant new hiring.
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Andrew Nicholas (William Blair): asked for detail on margin drivers beyond success fees and the impact of restructuring. CFO Angela Nam noted minor benefits from cost actions in Q3, with most savings to appear in Q4 and beyond.
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James Yaro (Goldman Sachs): explored whether headcount actions were cyclical or structural. Gunby explained these were targeted at underperforming bets and geographies, not a response to typical market cycles.
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 $182.94, up from $159.10 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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