FTI consulting forecasts 2026 revenue of $3.94B-$4.1B while lowering GAAP EPS to $8.70-$9.30 (NYSE:FCN)

FTI Consulting (FCN) issued 2026 revenue guidance of $3.94B–$4.1B, representing modest growth expectations, while simultaneously lowering GAAP EPS guidance to $8.70–$9.30. This divergence—top-line expansion paired with earnings pressure—signals underlying operational challenges despite revenue traction.

The guidance cut reflects margin compression driven by two headwinds: elevated SG&A (selling, general, administrative) expenses and litigation costs. These structural cost pressures are reducing operating leverage and limiting the conversion of incremental revenue into bottom-line profit, a concerning signal for operational efficiency and cost discipline.

The company's continued share buybacks amid EPS guidance reduction suggest management confidence in long-term value, though the timing appears defensive given near-term earnings headwinds. This posture indicates management is prioritizing shareholder returns over balance-sheet preservation or cost reduction initiatives.

Sector implication: Professional services and consulting firms increasingly face wage inflation and talent retention costs; FCN's SG&A pressure mirrors industry-wide margin stress. The litigation overhang introduces idiosyncratic risk, making FCN a stock-specific headwind rather than a sector-wide signal. Industrials exposure remains cautious pending clarity on cost normalization.