FTI Consulting’s second quarter results were marked by steady revenue growth but fell short of market expectations on profitability, leading to a negative market reaction. Management attributed the lower bottom-line performance to higher-than-expected selling, general, and administrative expenses (SG&A), including one-time legal and compensation costs. CEO Steven Gunby highlighted that while certain international markets like Spain and Germany outperformed, “challenges in the Middle East and the U.K.” dampened overall momentum. The company also noted that ongoing investments in senior talent increased direct costs during the period.
Is now the time to buy FCN? Find out in our full research report (it’s free for active Edge members).
FTI Consulting (FCN) Q2 CY2026 Highlights:
- Revenue: $993.5 million vs analyst estimates of $997.5 million (5.3% year-on-year growth, in line)
- Adjusted EPS: $1.99 vs analyst expectations of $2.26 (11.9% miss)
- Adjusted EBITDA: $104.5 million vs analyst estimates of $106.6 million (10.5% margin, 2% miss)
- The company reconfirmed its revenue guidance for the full year of $4.02 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $9.40 at the midpoint, a 1.6% increase
- Operating Margin: 8.6%, down from 10.5% in the same quarter last year
- Market Capitalization: $4.14 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 Q2 Earnings Call
- James Yaro (Goldman Sachs) inquired about the Middle East’s impact on business and when recovery might occur. CEO Steven Gunby explained the situation remains unpredictable due to evolving geopolitical disruptions and advised caution on near-term improvement.
- James Yaro (Goldman Sachs) also asked about restructuring market trends. CFO Angela Nam said that while there is no broad-based restructuring surge, FTI Consulting continues to win large, complex mandates, positioning the firm well as opportunities emerge.
- James Yaro (Goldman Sachs) questioned capital deployment priorities amid strong share repurchases. Nam clarified that the company remains opportunistic with buybacks and recently upsized its revolving credit facility to enhance financial flexibility.
- Andrew Nicholas (William Blair) sought details on the wider guidance range. Gunby attributed it to uncertainty in the U.K. and Middle East and the event-driven nature of the business, making precise forecasting challenging.
- Tobey Sommer (Truist) asked about the drivers of EBITDA improvement. Management pointed to lower expected SG&A in the second half, stronger performance in Economic Consulting and Technology, and ongoing share repurchase activity as key factors.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will monitor (1) the pace at which SG&A expenses normalize and litigation costs abate, (2) the ability of new senior hires to drive project wins in Corporate Finance and Forensic & Litigation Consulting, and (3) signs of stabilization or recovery in the Middle East and U.K. markets. The overall demand for AI-related advisory work and the ramp-up of large restructuring and transaction mandates will be additional areas to watch.
FTI Consulting currently trades at $153.24, down from $170.42 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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