FTI Consulting Stock Barely Moves Despite Q4 Earnings and Revenue Beat

Core Insights - FTI Consulting, Inc. (FCN) reported strong fourth-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate, yet the stock price remained stable post-earnings release [1] Financial Performance - Quarterly adjusted EPS was $1.78, surpassing the Zacks Consensus Estimate by $0.39 and reflecting a year-over-year increase of 14.1% [2] - Total revenues reached $990.7 million, exceeding the consensus estimate of $911.4 million and showing a year-over-year growth of 10.7% [2] Segmental Revenues - Technology revenues increased by 9.3% year over year to $99 million, driven by higher demand for M&A-related "second request" services [3] - Economic Consulting revenues fell by 14.5% year over year to $176.2 million, impacted by lower demand for antitrust services, partially offset by increased demand for financial economics services [3] - Corporate Finance revenues surged by 26.1% year over year to $423.2 million, attributed to higher demand and realized bill rates for turnaround and restructuring services [4] - Strategic Communications revenues rose by 12.8% year over year to $99.4 million, fueled by increased demand for corporate reputation services [4] - Forensic and Litigation Consulting revenues grew by 9.7% year over year to $192.9 million, driven by higher realized bill rates for risk and investigations services [5] Margin Expansion - Adjusted EBITDA was $106.2 million, representing a year-over-year increase of 44.1%, with the adjusted EBITDA margin rising by 250 basis points to 10.7% [6] Balance Sheet and Cash Flow - FCN ended the quarter with cash and cash equivalents of $265.1 million, up from $146 million in the prior quarter, while long-term debt decreased to $365 million from $510 million [7] - The company generated $359.8 million in cash from operating activities during the quarter, with capital expenditures amounting to $8.4 million [7] 2026 Guidance - FCN projects full-year 2026 EPS to range between $8.90 and $9.60, with the midpoint lower than the Zacks Consensus Estimate of $9.30 per share [8] - Revenue expectations for 2026 are set between $3.94 billion and $4.10 billion, with the midpoint slightly above the Zacks Consensus Estimate of $4.01 billion [8] Summary - FCN exceeded Q4 estimates with an EPS of $1.78 and revenues of $990.7 million, marking a 10.7% year-over-year increase, with Corporate Finance revenues experiencing a notable 26.1% growth [9] - The company expanded its EBITDA margin to 10.7% and raised its 2026 revenue outlook above consensus estimates [9]