FTI Consulting Stock Declines 6.3% Since Q2 Earnings Miss
FTI Consulting, Inc. FCN reported mixed second-quarter 2026 results, wherein the earnings missed the Zacks Consensus Estimate, but revenues beat the same.
The stock lost 6.3% since the earnings release on April 30 in response to the earnings miss.
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Quarterly adjusted earnings per share (EPS) came in at $1.90, which missed the Zacks Consensus Estimate of $2.11 and decreased 17% year over year. Meanwhile, total revenues of $983.4 million beat the consensus estimate by 1% and increased 9.5% year over year.
FTI Consulting, Inc. Price, Consensus and EPS Surprise
FTI Consulting, Inc. price-consensus-eps-surprise-chart | FTI Consulting, Inc. Quote
FTI Consulting shares have gained 1.7% over the past year against the 39.7% decline in the industry it belongs to and a 33.8% rise in the Zacks S&P 500 composite.
FCN’s Segmental Performance
Technology revenues increased 5.3% year over year to $102.3 million, driven by higher demand for litigation and information governance, privacy and security services, partially offset by lower demand for investigations and M&A-related second request services.
Economic Consulting revenues dropped 2.4% year over year to $175.65 million, primarily due to lower demand for antitrust services, partially offset by higher demand for financial economic services and higher realized bill rates.
Corporate Finance & Restructuring revenues gained 19.2% year over year to $409.5 million. The increase was primarily driven by higher demand and realized bill rates in turnaround and restructuring, which grew 19%, transactions, up 18%. and transformation, up 20%, compared with the prior-year quarter.
Strategic Communications revenues increased 18.4% year over year to $103 million. The increase was primarily driven by higher demand for corporate reputation, public affairs and financial communications services.
Forensic and Litigation Consulting revenues rose 1.2% year over year to $192.9 million, driven by higher realized bill rates for risk investigation and construction solutions services, partially offset by lower demand for dispute advisory services.
FCN’s Margins Expand
Adjusted EBITDA came in at $96.8 million, down 16% on a year-over-year basis. The adjusted EBITDA margin declined 300 basis points year over year to 9.8%.
FCN’s Balance Sheet and Cash Flow Figures
FTI Consulting exited the quarter with a cash and cash equivalent of $198.3 million compared with $265.1 million in the prior quarter. FCN generated $310 million of cash from operating activities in the quarter. The capital expenditure was $10.6 million.
FCN’s Guidance
For the full-year 2026, the company currently expects the tax rate to be in the band of 22-24%.
FCN currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
ManpowerGroup MAN reported impressive first-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
MAN’s adjusted earnings (excluding 46 cents from non-recurring items) were 51 cents per share, which surpassed the Zacks Consensus Estimate by one cent and increased 16% from the year-ago quarter’s level. Total revenues were $4.5 billion, which beat the consensus estimate by $171.4 million and improved 10.3% on a year-over-year basis.
Robert Half RHI reported first-quarter fiscal 2026 earnings of 14 cents per share, in line with the Zacks Consensus Estimate and down 17.6% from the year-ago quarter.
Quarterly revenues were $1.3 billion, down 3.8% year over year and slightly below the consensus mark of $1.31 billion, implying a 0.9% miss. Management pointed to strengthening same-day, constant-currency trends in talent solutions as the quarter progressed and into early April, with contract bill rates up 2.6% from a year ago on an adjusted basis.
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