FTI Consulting stock dips to $137.23 amid revenue miss and EPS shortfall

FTI Consulting Inc., a leading economic and financial consulting firm, has experienced a notable downturn in its stock price, hitting a 52-week low of $137.23 USD. The decline represents a 12.79% decrease over the past year, though the company maintains a relatively attractive valuation with a price-to-earnings ratio of 16.6 and a PEG ratio of 0.88. Despite this recent weakness, FTI’s second-quarter results demonstrated resilience, with revenue climbing to $993.5 million, a record for the period. However, the company fell short of Wall Street’s expectations, reporting adjusted earnings per share (EPS) of $2.16, below the projected $2.26. Adjusted EBITDA was $104.5 million, down from $111.6 million in the prior year, reflecting a 10.5% of revenue decline, primarily due to higher compensation, travel, and legal expenses—including significant litigation costs. The company’s guidance for full-year GAAP EPS was revised downward, though revenue projections for 2026 remained unchanged. Growth in corporate finance, technology, and strategic communications drove much of the revenue increase, while the economic consulting segment is expected to transition from a year-over-year drag to a positive contributor in the latter half of the year. FTI has also been aggressive with share buybacks, though the stock’s recent low underscores broader market or sector pressures. The company’s valuation metrics remain relatively stable, but the EPS shortfall and stock performance suggest ongoing challenges in execution and cost management.