FTI Consulting (FCN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues rose 9.5% year-over-year to $983.3 million, driven by growth in Corporate Finance, Strategic Communications, and Technology, partially offset by a decline in Economic Consulting; revenues were down 0.7% sequentially from Q4 2025.

• Net income was $57.6 million, down 6.8% year-over-year due to higher direct costs, SG&A expenses, increased interest expense, and a higher effective tax rate, but up 5.7% sequentially.

• Adjusted EBITDA was $96.8 million (9.8% margin), down 15.9% year-over-year and 8.9% sequentially, mainly due to higher costs and the absence of prior-year legal settlement gains.

• EPS increased to $1.90 from $1.74 year-over-year, primarily due to a lower share count; Adjusted EPS dropped to $1.90 from $2.29, reflecting the absence of special charges in the current period.

• Maintained momentum from a record 2025, with continued investment in talent, expansion into new geographies and service lines, and reaffirmed full-year 2026 guidance.

Financial highlights

• Q1 2026 revenues were $983.3 million, up 9.5% year-over-year; excluding FX, up 6.8%.

• Net income was $57.6 million, down from $61.8 million year-over-year.

• Adjusted EBITDA was $96.8 million (9.8% margin), down from $116.2 million (12.8% margin) year-over-year.

• EPS was $1.90, compared to $1.74 GAAP and $2.29 adjusted in Q1 2025.

• SG&A expenses rose to $222.3 million (22.6% of revenue), up from $184.3 million (20.5%).

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $3.94–$4.10 billion and EPS at $8.90–$9.60.

• Full-year tax rate expected between 22%–24%.

• SG&A for 2026 expected to be ~$60 million higher than 2025, with Q2 as the peak quarter.

• Capital expenditures for the remainder of 2026 projected at $34–$42 million.

• Management expects adequate liquidity for at least the next 12 months, supported by cash flows and available credit.