FTI Consulting has reported an unprecedented revenue performance for the second quarter of 2026, achieving a 5.3% increase compared to the previous year, or 6.5% when excluding pass-through revenues. This robust top-line growth was primarily fueled by strong showings in Corporate Finance and Technology sectors. Despite this impressive revenue growth, the company's profitability metrics, including adjusted EBITDA and earnings per share (EPS), faced downward pressure. This was largely attributed to higher-than-anticipated selling, general, and administrative (SG&A) expenses, which included one-time compensation adjustments and substantial costs associated with ongoing litigation. Geopolitical instability in the Middle East and transient market slowdowns in the United Kingdom also contributed to the challenges faced during the quarter. Nonetheless, FTI Consulting has upheld its revenue projections for the full year, while revising its GAAP EPS guidance to account for the extraordinary litigation expenditures. The firm's leadership expressed confidence in its future trajectory, emphasizing ongoing investments in specialized talent and the rising demand for sophisticated expert services, particularly as artificial intelligence reshapes the global business environment.
During the recent earnings call held on Thursday, July 30, 2026, Steven Gunby, CEO and Chairman, along with Angela Nam, Chief Financial Officer, and Paul Linton, Chief Strategy and Transformation Officer, delved into the intricacies of FTI Consulting's second-quarter performance. Gunby highlighted that while overall revenues hit a new high, the bottom-line figures were slightly below internal expectations. He clarified that higher SG&A costs played a significant role, noting that a portion of these expenses, including specific compensation items and a major SMD meeting, are not expected to recur in subsequent quarters. The company's expansion efforts, especially in international markets such as EMEA, also contributed to the discrepancy between actual and aspirational revenue growth, even as some regions like Spain and Germany outperformed.
The discussion further elucidated the varied impacts across different operational segments. The Corporate Finance division showcased exceptional results, driven by increased bill rates and success fees, despite a somewhat fluctuating restructuring and M&A landscape. Conversely, the Forensic and Litigation Consulting (FLC) segment experienced lower volume due to a decrease in regulatory enforcement activities, although it maintained strong bill rates by handling complex, high-stakes cases. The Economic Consulting (Econ) segment surpassed expectations, demonstrating significant sequential improvements, particularly in EMEA and North America, fueled by M&A-related antitrust services and financial economics. Technology and Strategic Communications (StratCom) also delivered solid quarters, with Technology benefiting from heightened demand for M&A-related second request services and StratCom from corporate reputation and crisis management work.
A notable aspect of the quarter was the substantial share repurchase activity, with 2.6 million shares bought back at an average price of $150.84, totaling $390.9 million. This strategic move, driven by the company's assessment of long-term value and balance sheet capacity, underscores management's confidence. Furthermore, the revolving credit facility was expanded from $900 million to $1.5 billion, extending its maturity by five years and enhancing financial flexibility. The leadership emphasized that AI is not only generating new challenges for companies, prompting them to seek FTI's expert services in areas like litigation and regulatory concerns but is also a disruptive force that inherently creates demand for the firm's core competencies in investigations, disputes, and crisis management. This emerging trend positions FTI Consulting favorably for sustained growth by leveraging its specialized expertise in an increasingly complex and technologically advanced business environment.
In essence, FTI Consulting's second quarter reflected a blend of strong revenue generation and operational challenges. The company navigated a dynamic global landscape, marked by record revenues, yet confronted profitability pressures from heightened operating expenses and unforeseen legal costs. Strategic investments in talent and share buybacks signal a forward-looking approach, aimed at capitalizing on evolving market demands and solidifying its leadership in expert-driven services, especially those influenced by the transformative impact of artificial intelligence.