FTI Consulting (FCN) Is Up 8.3% After Record Earnings, Higher Guidance, and New Buyback Plan

• In its most recent quarterly report, FTI Consulting posted record quarterly revenue of US$956.17 million and net income of US$82.82 million, increased its full-year earnings guidance, authorized a new US$500 million share repurchase, and expanded its leadership in risk advisory services in Australia.
• A unique aspect of these developments is the combination of both strong operational performance and clear capital allocation actions, underlined by management’s decision to accelerate the company’s share buyback program alongside raising annual earnings expectations.
• We'll now examine how FTI Consulting’s boosted earnings outlook and expanded buyback plan may influence its longer-term investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

FTI Consulting Investment Narrative Recap

To be a shareholder in FTI Consulting, you need confidence that the growing demand for complex risk, regulatory, and crisis advisory work will outweigh challenges from automation and shifting global enforcement trends. The latest quarterly results reinforce visibility in FTI’s primary short-term catalyst, rising demand in Forensic and Litigation Consulting, but they do not fundamentally reduce the biggest risk: volatile revenues in cyclical segments if economic conditions stabilize. Thus, while improved outlook and share buybacks support sentiment, the main underlying risk remains materially unchanged.

Among recent announcements, the expanded US$500 million share repurchase plan stands out, as it highlights management's willingness to return capital while earnings are trending positively. This move aligns with FTI’s ongoing efforts to balance operational momentum with shareholder value, supporting confidence amid the industry’s cyclical swings.

But in contrast, investors should remain aware of the risk that automation and AI could pressure high-touch consulting revenue, especially for segments like Technology and Economic Consulting if...

Read the full narrative on FTI Consulting (it's free!)

FTI Consulting's narrative projects $4.3 billion revenue and $358.3 million earnings by 2028. This requires 5.3% yearly revenue growth and a $108.6 million earnings increase from $249.7 million.

Uncover how FTI Consulting's forecasts yield a $174.50 fair value, a 3% upside to its current price.

Exploring Other Perspectives

One estimate from the Simply Wall St Community puts FTI’s fair value at US$174.50. While some believe that technology-enabled growth will support earnings, others see AI-related disruption as a key factor for future results. Look at a range of perspectives to inform your view.

Explore another fair value estimate on FTI Consulting - why the stock might be worth as much as $174.50!

Build Your Own FTI Consulting Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your FTI Consulting research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free FTI Consulting research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate FTI Consulting's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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