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Here's Why Investors Should Hold FCN Stock in Their Portfolios Now
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Key Takeaways
FTI Consulting is gaining share in complex advisory work as AI-related demand expands across practices.
FCN projects earnings growth of 4.8% in 2026 and 19.5% in 2027, with revenues also set to rise.
FCN's stronger cash flow supports investment and buybacks, though higher costs may pressure margins.
FTI Consulting, Inc.’s (FCN - Free Report) growth is supported by continued share gains in complex advisory work, rising artificial intelligence (AI)-related demand and ongoing investment in senior talent. Healthy liquidity and improved cash generation also provide flexibility to fund organic growth and opportunistic share repurchases.
FCN has a Growth Score of B. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.
The company’s third-quarter 2026 earnings are expected to increase 1.9% year over year. Its 2026 and 2027 earnings are projected to rise 4.8% and 19.5%, respectively. Revenues are anticipated to grow 5.1% in 2026 and 6.8% in 2027.
Factors That Bode Well for FCN’s Success
Expanding Share in Complex Advisory Work: FTI continues to gain share across high-stakes restructuring, investigations, cybersecurity, disputes and transaction-related assignments, reinforcing its position in complex, expertise-driven mandates. Despite a softer restructuring backdrop, global restructuring revenues increased 8% year over year in the first half of 2026, supported by large company-side engagements and continued wins on complex matters.
Management expects the firm’s expert-led model, deep senior talent base and ability to handle mission-critical assignments to support further share gains. Continued investment in senior talent and cross-practice capabilities should broaden FTI’s opportunity set and support durable revenue growth as demand improves across key advisory markets.
AI-driven Demand Broadens Opportunity: AI is emerging as an incremental demand driver across several FTI practices, extending beyond internal productivity benefits. Clients are increasingly seeking advice on AI-related litigation, intellectual property disputes, antitrust matters, regulatory compliance, cybersecurity and risks of fraud.
Management also views AI-driven disruption as a potential catalyst for restructuring, investigations, and broader disputes, expanding the addressable market for FTI’s expert-led services. As adoption spreads and regulatory scrutiny evolves, demand for independent judgment and specialized expertise should deepen across multiple practices. This positions AI as a potentially durable contributor to FTI’s medium-term growth rather than a short-lived project cycle.
Liquidity Capacity & Share Repurchases: FCN ended the second quarter of 2026 with $1.59 billion of current assets versus $782.4 million of current liabilities, while quarterly operating cash flow rose to $152.3 million from $55.7 million a year earlier. The company has also stepped up capital returns, repurchasing $858.7 million of shares in 2025, $126.8 million in the first and $390.9 million in the second quarter of 2026. Healthy liquidity and stronger cash generation provide room to fund organic investment while continuing opportunistic buybacks, which should support per-share earnings and shareholder returns over time.
Watch Out for These Risks to FCN Stock
Margin & Earnings Execution Risk: FTI Consulting’s adjusted EBITDA declined to $104.5 million in the second quarter of 2026 from $111.6 million a year earlier despite revenue growth, reflecting higher direct costs and sales, general & administrative (SG&A) expenses. The company also lowered full-year GAAP earnings per share guidance to $8.70-$9.30 from $8.90-$9.60 and now expects SG&A to increase by about $70 million year over year. Continued investment in senior talent, elevated legal costs and softer regulatory activity may constrain near-term margin recovery. While some expenses are expected to ease in the second half, sustained cost discipline and improved utilization will be important for restoring earnings growth and supporting a more durable margin rebound.
No Dividend: FTI Consulting does not pay a dividend, leaving shareholder returns reliant on share-price appreciation and repurchases. While buybacks have reduced the share count, they have also coincided with higher leverage, with net debt rising to $856.3 million at the end of the second quarter of 2026 from $317.2 million a year earlier and $556.7 million at the first quarter of 2026. Continued aggressive repurchases could further constrain balance-sheet flexibility if cash generation softens. As leverage increases, the scope for buybacks to support per-share earnings may become more dependent on sustained free cash flow and disciplined capital allocation.
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Here's Why Investors Should Hold FCN Stock in Their Portfolios Now
Key Takeaways
FTI Consulting, Inc.’s (FCN - Free Report) growth is supported by continued share gains in complex advisory work, rising artificial intelligence (AI)-related demand and ongoing investment in senior talent. Healthy liquidity and improved cash generation also provide flexibility to fund organic growth and opportunistic share repurchases.
FCN has a Growth Score of B. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.
The company’s third-quarter 2026 earnings are expected to increase 1.9% year over year. Its 2026 and 2027 earnings are projected to rise 4.8% and 19.5%, respectively. Revenues are anticipated to grow 5.1% in 2026 and 6.8% in 2027.
Factors That Bode Well for FCN’s Success
Expanding Share in Complex Advisory Work: FTI continues to gain share across high-stakes restructuring, investigations, cybersecurity, disputes and transaction-related assignments, reinforcing its position in complex, expertise-driven mandates. Despite a softer restructuring backdrop, global restructuring revenues increased 8% year over year in the first half of 2026, supported by large company-side engagements and continued wins on complex matters.
Management expects the firm’s expert-led model, deep senior talent base and ability to handle mission-critical assignments to support further share gains. Continued investment in senior talent and cross-practice capabilities should broaden FTI’s opportunity set and support durable revenue growth as demand improves across key advisory markets.
FTI Consulting, Inc. Revenue (TTM)
FTI Consulting, Inc. revenue-ttm | FTI Consulting, Inc. Quote
AI-driven Demand Broadens Opportunity: AI is emerging as an incremental demand driver across several FTI practices, extending beyond internal productivity benefits. Clients are increasingly seeking advice on AI-related litigation, intellectual property disputes, antitrust matters, regulatory compliance, cybersecurity and risks of fraud.
Management also views AI-driven disruption as a potential catalyst for restructuring, investigations, and broader disputes, expanding the addressable market for FTI’s expert-led services. As adoption spreads and regulatory scrutiny evolves, demand for independent judgment and specialized expertise should deepen across multiple practices. This positions AI as a potentially durable contributor to FTI’s medium-term growth rather than a short-lived project cycle.
Liquidity Capacity & Share Repurchases: FCN ended the second quarter of 2026 with $1.59 billion of current assets versus $782.4 million of current liabilities, while quarterly operating cash flow rose to $152.3 million from $55.7 million a year earlier. The company has also stepped up capital returns, repurchasing $858.7 million of shares in 2025, $126.8 million in the first and $390.9 million in the second quarter of 2026. Healthy liquidity and stronger cash generation provide room to fund organic investment while continuing opportunistic buybacks, which should support per-share earnings and shareholder returns over time.
Watch Out for These Risks to FCN Stock
Margin & Earnings Execution Risk: FTI Consulting’s adjusted EBITDA declined to $104.5 million in the second quarter of 2026 from $111.6 million a year earlier despite revenue growth, reflecting higher direct costs and sales, general & administrative (SG&A) expenses. The company also lowered full-year GAAP earnings per share guidance to $8.70-$9.30 from $8.90-$9.60 and now expects SG&A to increase by about $70 million year over year. Continued investment in senior talent, elevated legal costs and softer regulatory activity may constrain near-term margin recovery. While some expenses are expected to ease in the second half, sustained cost discipline and improved utilization will be important for restoring earnings growth and supporting a more durable margin rebound.
No Dividend: FTI Consulting does not pay a dividend, leaving shareholder returns reliant on share-price appreciation and repurchases. While buybacks have reduced the share count, they have also coincided with higher leverage, with net debt rising to $856.3 million at the end of the second quarter of 2026 from $317.2 million a year earlier and $556.7 million at the first quarter of 2026. Continued aggressive repurchases could further constrain balance-sheet flexibility if cash generation softens. As leverage increases, the scope for buybacks to support per-share earnings may become more dependent on sustained free cash flow and disciplined capital allocation.
FCN’s Zacks Rank & Stocks to Consider
FTI Consulting currently carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of better-ranked stocks in the broader Business Services sector are CBIZ, Inc. (CBZ - Free Report) and EVERTEC, Inc. (EVTC - Free Report) .
CBIZ carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 10%.
CBZ beat earnings estimates in three of the trailing four quarters and missed once, delivering an earnings surprise of 8.9%, on average.
EVERTEC also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 10%.
EVTC beat earnings estimates in three of the trailing four quarters and missed once, with an average earnings surprise of 3.8%.