Abstract

FTI Consulting will report fourth-quarter results on February 26, 2026, Pre-Market; this preview summarizes market expectations for revenue, profitability, and adjusted EPS alongside business-segment dynamics and institutional sentiment since January 1, 2026.

Market Forecast

Consensus and company-guided indicators point to a steady quarter for revenue and profit metrics: revenue for the quarter is projected at $918.55 million, implying a 0.55% year-over-year increase; EBIT is estimated at $61.94 million with a forecast year-over-year decline of 23.10%; and adjusted EPS is expected at $1.46, implying a 15.25% year-over-year decline. Forecasts do not explicitly break out margins, but the implied mix suggests modest operating leverage pressure, with revenue resilience offset by lower profitability; YoY comparisons are based on the prior-year calendar quarter.

By business line, revenue mix in the latest reported quarter was led by Corporate Finance & Restructuring at $404.90 million, followed by Forensic and Litigation Consulting at $194.69 million, Strategic Communications at $89.42 million, Technology at $94.08 million, and an additional advisory line at $173.09 million; the near-term highlight remains continued activity in corporate restructurings and disputes. The segment with the most visible upside remains Corporate Finance & Restructuring, supported by elevated demand for turnaround engagements and transaction-related advisory, though the quarter’s growth pace is expected to normalize against a strong prior-year base.

Last Quarter Review

In the previous quarter, FTI Consulting delivered revenue of $956.17 million, a gross profit margin of 33.25%, GAAP net profit attributable to shareholders of $82.82 million, a net profit margin of 8.66%, and adjusted EPS of $2.60, with revenue up 3.26% year-over-year and adjusted EPS up 40.54% year-over-year; net profit grew 15.51% quarter-on-quarter.

Operationally, the company converted steady demand into higher earnings quality, with better utilization and favorable mix supporting margins versus the year-ago period. The largest contribution came from Corporate Finance & Restructuring with $404.90 million in revenue, while Forensic and Litigation Consulting, Technology, Strategic Communications, and an additional advisory line together provided balanced growth against diversified client demand; segment-level YoY growth rates were not specified.

Current Quarter Outlook (with major analytical insights)

Corporate Finance & Restructuring: balancing cyclical tailwinds with utilization discipline

Corporate Finance & Restructuring remains the primary engine for revenue, anchored by engagements in performance improvement, turnarounds, and distressed situations. The forecast for this quarter implies modest top-line growth and a retreat in EBIT and EPS, which suggests either lower average bill rates, fewer high-margin projects, or a step-up in client acquisition and personnel costs to support pipeline conversion. Demand indicators tied to refinancing activity and credit spreads point to a healthy backdrop for restructuring mandates. However, calendar effects and tougher prior-year comparisons may weigh on growth optics, and any short-term lull in large case commencements would translate into lower utilization and margin pressure. Investors should watch commentary around win rates, backlog conversion timing, and pricing trends to gauge whether EBIT softness is transient or a signal of normalization following an elevated cycle.

Forensic and Litigation Consulting: steady case flow with pricing sensitivity

The Forensic and Litigation Consulting segment often exhibits multi-quarter case trajectories and relatively stable utilization, making it a partial buffer when other segments face volatility. The company’s last quarter showed healthy contribution from this unit within an overall margin profile that remained solid on a year-over-year basis. In the current quarter, the forecasted decline in EBIT and adjusted EPS relative to a near-flat revenue growth suggests that case mix may tilt toward labor-intensive or early-stage matters that carry lower margins. Pricing discipline and staffing leverage will be central to preserving profitability. An acceleration in disputes or regulatory examinations could provide upside, while protracted matter timelines or delayed court calendars may defer revenue recognition and dampen near-term earnings flow-through.

Technology and Data & Analytics: project timing and cost investment shape earnings trajectory

Technology-related advisory tends to be sensitive to project timing and scope changes, particularly in e-discovery, data analytics, and cyber response engagements. The previous quarter indicated solid absolute revenue contribution from Technology at $94.08 million. For the current quarter, revenue resilience at the consolidated level combined with a forecasted pullback in EBIT implies either more ramp-phase projects or investments in platform capabilities and talent that temporarily dilute margins. The pipeline for data-heavy investigations and discovery remains favorable; however, utilization swings can be pronounced. Investors should focus on the mix of recurring versus project-based work, the pace of roll-off from legacy engagements, and whether cost investments are translating into higher attach rates across disputes and investigations.

Strategic Communications and Advisory: visibility improving yet sensitive to macro headlines

Strategic Communications posted $89.42 million in the last reported quarter and often mirrors corporate event calendars, transaction sentiment, and crisis mandates. With the consolidated revenue guide implying only 0.55% growth, this segment likely faces a mixed backdrop, where M&A-related engagements may be counterbalanced by ongoing crisis and stakeholder communications assignments. Staffing levels and the breadth of retained mandates can support utilization, but lower event-driven activity would cap upside. Margin developments here are typically tied to billable hours and the share of retainer-based contracts, suggesting that sustained client retention is key to offsetting any lull in live transactions.

Key stock-price swing factors this quarter: margins, utilization, and pipeline commentary

The headline risk for the stock revolves around the projected decline in EBIT and adjusted EPS relative to nearly flat revenue. Any change in utilization rates, average billable rates, and the proportion of high-margin mandates can materially affect operating leverage. Investors should listen for updates on hiring pace and compensation costs, which can front-load expenses ahead of revenue capture. A second determinant is the pipeline conversion in Corporate Finance & Restructuring and Forensic and Litigation, where large matter commencements can quickly restore margin momentum. Finally, management’s color on pricing power and competitive dynamics in technology-enabled offerings will inform the durability of revenue per consultant and the scalability of newer service lines.

Analyst Opinions

The balance of commentary during the period indicates a majority of constructive views on the upcoming quarter, as institutions highlight resilient demand across restructuring and dispute advisory despite an expected moderation in margin performance. Several analysts emphasize that a modest revenue gain paired with lower EBIT should be interpreted in the context of a high prior-year base and ongoing investment in people and technology that supports medium-term fee growth. The bullish camp stresses recurring matter flow and a diversified portfolio that cushions against single-segment volatility, noting that large-case wins could re-accelerate earnings power once utilization normalizes. On the minority cautious side, analysts flag the risk that margin pressure persists if pricing tightens or if ramping headcount outpaces near-term project starts. Overall, the constructive majority focuses on stable top-line trends, healthy backlog indicators, and management’s historical execution in sustaining double-digit returns on invested capital through cycles.