FTI Consulting Stock Barely Moves Despite Q4 Earnings and Revenue Beat

FTI Consulting, Inc. FCN reported impressive fourth-quarter 2025 results, with both earnings and revenues beating the Zacks Consensus Estimate. However, the positive results did not affect investor sentiment as the stock has barely moved since the earnings release on Feb. 26.

Quarterly adjusted EPS came in at $1.78, surpassing the Zacks Consensus Estimate by 39 cents and rising 14.1% year over year. Total revenues of $990.7 million beat the consensus estimate of $911.4 million and rose 10.7% year over year.

FCN’s Segmental Revenues

Technology revenues increased 9.3% year over year to $99 million. The rise was primarily due to higher demand for merger and acquisition (M&A)-related “second request” services.

Economic Consulting revenues dropped 14.5% year over year to $176.2 million, due to lower demand for non-M&A and M&A-related antitrust, partially offset by higher demand for financial economics services and higher realized bill rates for international arbitration services. 

Corporate Finance revenues grew 26.1% year over year to $423.2 million, primarily due to increased demand and higher realized bill rates for turnaround & restructuring, transactions and transformation services.

Strategic Communications revenues increased 12.8% year over year to $99.4 million, driven by higher demand for corporate reputation services.

Forensic and Litigation Consulting revenues rose 9.7% year over year to $192.9 million. Excluding acquisition-related revenues, higher realized bill rates for risk and investigations services, along with increased bill rates and demand for data & analytics services, primarily drove the increase in revenues.

FCN’s Margins Expand

Adjusted EBITDA came in at $106.2 million, up 44.1% on a year-over-year basis. The adjusted EBITDA margin rose 250 basis points year over year to 10.7%.

FCN’s Key Balance Sheet & Cash Flow Figures

FTI Consulting exited the quarter with cash and cash equivalents of $265.1 million compared with the prior quarter’s $146 million. The long-term debt balance was $365 million compared with the prior quarter’s $510 million.

FCN generated $359.8 million of cash from operating activities during the quarter. The capital expenditure was $8.4 million.

FCN’s 2026 Guidance

FCN expects EPS for full-year 2026 to range between $8.90 and $9.60. The mid-point of the guided range is lower than the Zacks Consensus Estimate of $9.30 per share.

The company’s revenues are expected to be between $3.94 billion and $4.10 billion. The mid-point of the guided range is a tad higher than the Zacks Consensus Estimate of $4.01 billion.

FTI Consulting currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshot

Trane Technologies TT reported impressive fourth-quarter 2025 results. TT’s quarterly earnings of $2.86 per share beat the Zacks Consensus Estimate by 1.4% and increased 9.6% from the year-ago quarter.

TT’s total revenues of $5.1 billion surpassed the consensus estimate by 1.3% and rallied 5.5% from the year-ago quarter.

Booz Allen Hamilton BAH registered mixed results for third-quarter fiscal 2026. BAH’s earnings per share of $1.77 beat the consensus mark by 40.5% and increased 14.2% from the year-ago quarter.

BAH’s revenues of $2.6 billion missed the Zacks Consensus Estimate by 3.9% and declined 10.2% from the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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