Analysis FCN
FTI raises its adjusted profit outlook as job cuts hit reported earnings
FTI Consulting raised its adjusted earnings forecast while cutting its reported outlook. Restructuring costs and one-off benefits explain why both can happen.
Ticker Byline
FTI Consulting, Inc.
FTI Consulting advises organizations on restructuring, disputes, investigations, economics, technology and communications. Its latest reported quarter ended September 30, 2026.
- Ticker
- FCN
- Exchange
- XNYS
- SEC CIK
- 0000887936
What FTI Consulting does
FTI Consulting advises organizations facing financial, legal, regulatory and business challenges. Its five segments cover corporate finance, forensic and litigation consulting, economic consulting, technology, and strategic communications. The company trades on the New York Stock Exchange as FCN.
Latest results: third quarter of 2026
Revenue grew across all five segments in the quarter ended September 30, 2026. A staffing and real estate charge reduced reported profit, while adjusted earnings benefited from success fees, a lower effective tax rate and a smaller share count. The adjusted measure excludes specified costs and should be read alongside reported results.
| Measure | Q3 2026 | Q3 2025 |
|---|---|---|
| Revenue | $1,012.6 | $956.2 |
| Net income, reported | $63.4 | $82.8 |
| Diluted earnings per share, reported | $2.35 | $2.60 |
| Adjusted net income | $103.7 | $82.8 |
| Adjusted earnings per share | $3.84 | $2.60 |
| Operating cash flow | $190.4 | $201.9 |
Cash, debt and capital returns
Reported figures follow standard U.S. accounting rules. Diluted earnings per share allows for potential extra shares, including employee awards. Operating cash flow measures cash generated by day-to-day business.
At September 30, 2026, FTI held $88.1 million in cash and cash equivalents and had $852 million of total debt principal. Debt was down from $1.02 billion at June 30 but above $510 million a year earlier. Quarterly share repurchases cost $79.4 million.
For the first nine months of 2026, operating cash flow was $32.7 million, compared with $207.6 million used in the same period of 2025. Those cumulative figures are separate from the third-quarter cash inflows shown above.
Forecast and restructuring
FTI retained its full-year 2026 revenue forecast of $3.94 billion to $4.10 billion. It raised adjusted earnings guidance to $9.50 to $10.00 per share from $9.10 to $9.70, while lowering reported earnings guidance to $7.55 to $8.05 from $8.70 to $9.30.
The staffing plan affects about 4% of more than 8,200 employees across the third and fourth quarters, with departures subject to notice periods. A $46 million third-quarter charge and an expected $7 million fourth-quarter charge are associated with expected annualized savings of about $80 million. These savings have not yet been established as actual results. The main developments to watch are execution of the plan, recurring demand and fees, and cash generation after capital returns.
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