The restructuring and lowered GAAP EPS guidance are the dominant signals here, outweighing the record revenue and Adjusted EPS beat. The $80M in expected annualized savings should improve margins in 2027, but the GAAP EPS guidance cut reflects the real cost of the headcount reductions. Watch Q4 2026 for the $7M additional charge and the full-year impact of the cost savings program. The Econ segment's recovery from its disruption is a key swing factor for 2027 earnings.
Price Chart
Executive Summary
FTI Consulting reported record Q3 2026 revenues of $1.013B (+5.9% YoY) and record Adjusted EPS of $3.84 (+48% YoY), driven by growth across all five segments and record success fees. However, GAAP EPS fell 10% to $2.35 due to a $46M special charge for headcount reductions (4% of staff) and $4.5M in litigation expenses. The company reaffirmed revenue guidance of $3.94B-$4.10B but lowered GAAP EPS guidance to $7.55-$8.05 (from $8.70-$9.30), while raising Adjusted EPS guidance to $9.50-$10.00 (from $9.10-$9.70). The restructuring signals management is proactively cutting costs in underperforming areas, but the combination of a large special charge, lowered GAAP EPS guidance, and a GAAP EPS decline makes this filing bearish overall.
Key Financial Metrics
Key Facts
- Record Q3 2026 revenues of $1.013B, up 5.9% YoY from $956.2M
- GAAP EPS of $2.35, down 10% YoY from $2.60
- Record Adjusted EPS of $3.84, up 48% YoY from $2.60
- Record Adjusted EBITDA of $153.7M, up 18% YoY from $130.6M; margin improved 150bps to 15.2%
- Record success fees of $40.7M in Corporate Finance, including a large fee from the Federal Reserve Bank of Boston loan portfolio sale
- $46.0M special charge in Q3 2026 ($45.5M salary/benefits, $0.5M real estate) for headcount reductions affecting ~4% of employees (~330 people)
- Expected additional $7M special charge in Q4 2026 ($2M salary/benefits, $5M real estate)
- Annualized cost savings of ~$80M expected from the restructuring actions
- Revenue guidance reaffirmed at $3.94B-$4.10B
- GAAP EPS guidance lowered to $7.55-$8.05 from $8.70-$9.30
- Adjusted EPS guidance raised to $9.50-$10.00 from $9.10-$9.70
- Net income of $63.4M, down 23.4% YoY from $82.8M
- Operating cash flow of $190.4M, down 5.7% YoY from $201.9M
- Share repurchases of $79.4M in Q3 (523,588 shares at $151.55 avg); $264.7M remaining under buyback program
- Total debt of $852M at Sept 30, 2026, up from $510M a year ago
- Weighted average diluted shares fell to 27.0M from 31.8M YoY due to aggressive buybacks
Financial Impact
Q3 GAAP EPS decline of 10% YoY; $46M special charge (1.0% of market cap); $80M annualized cost savings expected; GAAP EPS guidance cut by ~$1.20 at midpoint; Adjusted EPS guidance raised by ~$0.35 at midpoint
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Corporate Finance | $424.4M | +4.8% |
| Forensic and Litigation Consulting | $195.1M | +0.2% |
| Economic Consulting | $189.3M | +9.3% |
| Technology | $103.2M | +9.7% |
| Strategic Communications | $100.6M | +12.5% |
Risk Factors
- GAAP EPS declined 10% YoY despite record revenue, driven by restructuring charges and higher interest expense
- GAAP EPS guidance lowered by ~13% at midpoint ($7.80 vs prior $9.00), signaling ongoing cost pressures
- Restructuring affecting 4% of workforce indicates management sees structural issues in certain geographies/businesses
- Total debt nearly doubled YoY to $852M, increasing financial leverage
- Cash and cash equivalents fell to $88.1M from $265.1M at year-end 2025
- FLC segment revenue nearly flat (+0.2% YoY) with Adjusted Segment EBITDA down 10.7%
- Restructuring market remains mixed; M&A deal volume slowed notably in Q3
- Extraordinary litigation expenses ($4.5M in Q3, $11.1M YTD) are ongoing and non-recurring but add uncertainty
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-441751 |
| Document: fcn-ex99_2.htm | 0001193125-26-441751 |
| Document: fcn-20261029.htm | 0001193125-26-441751 |
| Document: fcn-ex99_3.htm | 0001193125-26-441751 |
| Document: 0001193125-26-441751-index-headers.html | 0001193125-26-441751 |
| Document: 0001193125-26-441751-index.html | 0001193125-26-441751 |
| Document: 0001193125-26-441751.txt | 0001193125-26-441751 |
| 8-K Data (Synthetic) | 0001193125-26-441751 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 30, 2026 2d ago | 8-K | $184.86 | awaiting T+60 | awaiting T+60 | $182.84 (+1.09%) |
Oct 29, 2026 3d ago | Press Release | $181.24 | awaiting T+60 | awaiting T+60 | $182.84 (+0.88%) |
Oct 9, 2026 23d ago | Court Ruling | $138.09 | awaiting T+60 | awaiting T+60 | $182.84 (+32.41%) |
Jul 1, 2026 17w ago | 8-K | $149.39 $130.45 | ▼ −12.68% | ▼ −15.55% | $182.84 (+22.39%) |
Jun 5, 2026 21w ago | 8-K | $159.70 $150.57 | ▼ −5.72% | ▼ −9.72% | $182.84 (+14.49%) |
Jun 5, 2026 21w ago | Press Release | $159.70 $150.57 | ▼ −5.72% | ▼ −9.72% | $182.84 (+14.49%) |
May 27, 2026 22w ago | Press Release | $154.42 $153.49 | ▼ −0.60% | ▼ −2.48% | $182.84 (+18.40%) |
May 13, 2026 24w ago | Insider Cluster | $144.83 $151.43 | ▲ +4.56% | ▲ +0.12% | $182.84 (+26.24%) |
May 1, 2026 26w ago | 8-K | $168.05 $170.42 | ▼ −1.41% | ▲ +0.45% | $182.84 (−8.80%) |
Apr 30, 2026 26w ago | Press Release | $179.30 $161.88 | ▼ −9.72% | ▼ −12.82% | $182.84 (+1.97%) |
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