Exponent Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 29 October 2026: press release. Guidance figures: 2 raised, 2 new, 1 kept. The quarter’s numbers.

Key takeaways

Third-quarter revenue grew 12%: Revenues before reimbursements rose 12% to $153.1 million; net income was $30.9 million, or $0.64 per diluted share, against $0.55 a year earlier. Source
EBITDA margin rose to 29.4%: EBITDA was $45.0 million, or 29.4% of revenues before reimbursements, against $38.8 million and 28.3% a year earlier. Source
Engineering segment grew 13%: The engineering and other scientific segment grew 13% in the quarter and over nine months; it was 85% of revenues before reimbursements. Source
User research drove growth: User research activity spanned health applications, dynamic and unstructured real-world environments, and sensory perception. Source
Nine-month EBITDA margin rose: EBITDA was 28.8% of revenues before reimbursements over the first three quarters, up from 27.8% a year earlier. Source
Reactive work grew again: Reactive work grew on top of the prior-year quarter, with more dispute-related and failure analysis demand in chemicals, consumer products and transportation. Source
Cash fell from year-end levels: Cash and cash equivalents were $114.7 million at October 2, 2026, down from $221.9 million at January 2, 2026. Source

“Exponent delivered another strong quarter, with double-digit growth in revenues and earnings, reflecting continued demand for our specialized, integrated engineering and scientific expertise,”
Dr. Catherine Corrigan, Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Revenues before reimbursements growth Source	Fourth quarter of fiscal 2026 vs same quarter of 2025	8% to 10%	New
EBITDA margin (% of revenues before reimbursements) Source	Fourth quarter of fiscal 2026	26.3% to 26.8%	New
Revenues before reimbursements growth Source	Fiscal 2026 vs fiscal 2025	10% to 11%	Raised from 9% to 10%
EBITDA margin (% of revenues before reimbursements) Source	Fiscal 2026	28.0% to 28.3%	Raised from 27.8% to 28.1%
Quarterly cash dividend Source	Payable December 18, 2026	$0.31	Kept

What changed from last quarter

Guidance raised: Full-year revenue growth guidance raised compared with the second-quarter release. Source
Guidance raised: Full-year EBITDA margin guidance raised compared with the second-quarter release. Source
New guidance: Fourth-quarter revenue and EBITDA margin guidance given; the prior release gave guidance only for the third quarter. Source

Results and growth drivers

Third-quarter revenue grew 12%: Revenues before reimbursements rose 12% to $153.1 million; net income was $30.9 million, or $0.64 per diluted share, against $0.55 a year earlier. Source
Nine-month net income and EPS rose: Net income for the first three quarters was $89.9 million, or $1.83 per diluted share, against $81.2 million and $1.58; revenues before reimbursements rose 11%. Source
EBITDA margin rose to 29.4%: EBITDA was $45.0 million, or 29.4% of revenues before reimbursements, against $38.8 million and 28.3% a year earlier. Source

Segments and regions

Engineering segment grew 13%: The engineering and other scientific segment grew 13% in the quarter and over nine months; it was 85% of revenues before reimbursements. Source
Environmental and health grew 3%: The environmental and health segment grew 3% in the quarter and 4% over nine months, on projects assessing chemical effects on health and the environment. Source
Segment mix held at 85/15: Environmental and health was 15% of revenues before reimbursements in the quarter and nine months; the engineering segment was 85%. Source

“Our ability to scale our operating model in response to market demand resulted in 77% utilization and expanded profitability during the third quarter of 2026.”
Eric Anderson, Chief Financial Officer

Products and customers

User research drove growth: User research activity spanned health applications, dynamic and unstructured real-world environments, and sensory perception. Source
Dispute work in three industries: Dispute-related services for chemical facilities, consumer products and advanced transportation technologies also drove growth in the quarter. Source
AI-enabled systems and infrastructure work: Client work described covers validating AI-enabled systems, strengthening critical infrastructure, and understanding how people interact with technology. Source

Costs and other income

Compensation rose 3%: Compensation and related expenses were $90.0 million, up from $87.7 million, while revenues before reimbursements rose 12%. Source
Other operating costs rose, G&A fell: Other operating expenses were $13.8 million, up from $12.7 million; general and administrative expenses were $7.3 million, down from $7.7 million. Source
Stock-based compensation rose: Stock-based compensation was $6.7 million, up from $5.3 million, and is added back to reach EBITDAS of $51.7 million. Source
Interest and other income fell: Interest income, net was $0.7 million, down from $2.3 million; miscellaneous income was $0.4 million, against $7.3 million. Source

Margins and pricing

Nine-month EBITDA margin rose: EBITDA was 28.8% of revenues before reimbursements over the first three quarters, up from 27.8% a year earlier. Source
Consolidated tax rate edged up: Consolidated tax rate was 28.0% for the quarter, against 27.4%; the tax benefit from share-based awards was immaterial. Source
Operating income rose from prior year: Operating income was $41.9 million, up from $29.0 million a year earlier. Source

Demand and reactive work

Reactive work grew again: Reactive work grew on top of the prior-year quarter, with more dispute-related and failure analysis demand in chemicals, consumer products and transportation. Source
Proactive work not described this quarter: The prior-quarter release described proactive work growing, led by user research studies; this release does not describe proactive work.
Utility-sector work not named: The prior-quarter release cited risk management and infrastructure work in the utility sector; this release does not name utilities.

Capital, cash and returns

Cash fell from year-end levels: Cash and cash equivalents were $114.7 million at October 2, 2026, down from $221.9 million at January 2, 2026. Source
Receivables rose from year-end: Accounts receivable, net, was $209.6 million, up from $181.5 million at January 2, 2026. Source
Dividends and buybacks through nine months: Nine-month dividends were $46.1 million, up from $31.3 million in the first half; repurchases were $146.1 million, the same as the first-half figure. Source
Diluted share count fell: Diluted shares averaged 48.4 million in the quarter, against 51.2 million a year earlier. Source

Strategy and investment

AI and physical systems converging: Management said AI and digital technology are being embedded in physical systems, so the digital and physical worlds are converging. Source
Long-term trends cited: Management attributed results to durable trends: technological innovation, increasing complexity, infrastructure investment and safety expectations. Source
Differentiated where data meets evidence: Management said Exponent is differentiated where data and computation meet real-world evidence and where technology must work for users. Source

People and leadership

Scientists combine domain and rigor: Management described multidisciplinary scientists and engineers combining domain expertise, scientific rigor and understanding of physical systems for clients. Source
950+ consultants across 90+ disciplines: The company said it brings together 90+ technical disciplines and 950+ consultants serving more than a dozen industries. Source
Integrated platform delivers trust: Management said the integrated platform brings science and engineering expertise to deliver explainability, clarity and trust. Source

Figures management reported

Figure	Reported
Utilization Source	77% in the third quarter

Earlier plans management reported on

Not stated: The company reiterated its intent to continue paying quarterly dividends. Source
Not stated: CFO said the company will continue to build on its diversified talent and capabilities. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Exponent Reports Third Quarter 2026 Financial Results

MENLO PARK, Calif., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the third quarter of fiscal year 2026 ended October 2, 2026.

“Exponent delivered another strong quarter, with double-digit growth in revenues and earnings, reflecting continued demand for our specialized, integrated engineering and scientific expertise,” stated Dr. Catherine Corrigan, Chief Executive Officer. “User research studies continued to be a strong contributor to our growth, as clients move quickly to understand how people interact with technology across a widening range of devices and applications. Reactive work also grew, on top of a strong prior-year quarter, with increased dispute-related and failure analysis demand in the chemical, consumer products and transportation industries.

“These results reflect the durable, long-term trends shaping our business, including rapid technological innovation, increasing complexity, investment in critical infrastructure, and rising societal expectations for safety and reliability. As artificial intelligence and other digital technologies become increasingly embedded into physical systems, the digital and physical worlds are converging. Exponent is differentiated at that convergence, where data and computation meet real-world evidence, and where technology must ultimately work for the user. Our multidisciplinary scientists and engineers bring together deep domain expertise, scientific rigor, and an understanding of complex physical systems to help clients innovate with confidence, solve their most challenging problems, and manage high-consequence risk,” Dr. Corrigan continued.

Third Quarter Financial Results

Total revenues and revenues before reimbursements for the third quarter of 2026 increased 18% to $173.7 million and 12% to $153.1 million, respectively, as compared to $147.1 million and $137.1 million in the third quarter of 2025.

Net income increased to $30.9 million, or $0.64 per diluted share, in the third quarter of 2026, as compared to $28.0 million, or $0.55 per diluted share, in the same period of 2025. The tax benefit associated with share-based awards was immaterial in both the third quarter of 2026 and 2025. Inclusive of the tax benefit, Exponent’s consolidated tax rate was 28.0% in the third quarter of 2026, as compared to 27.4% for the same period in 2025.

EBITDA increased to $45.0 million, or 29.4% of revenues before reimbursements, in the third quarter of 2026, as compared to $38.8 million, or 28.3% of revenues before reimbursements in the third quarter of 2025.

Year to Date Financial Results

Total revenues and revenues before reimbursements for the first three quarters of 2026 increased 18% to $511.6 million and 11% to $453.7 million, respectively, as compared to $434.6 million and $407.4 million in the same period of 2025.

Net income increased to $89.9 million, or $1.83 per diluted share, through the first three quarters of 2026, as compared to $81.2 million, or $1.58 per diluted share, in the same period of 2025. During the first three quarters of 2026, we realized a negative tax impact associated with share-based awards of $0.8 million, as compared to $0.4 million during the same period one year ago. Inclusive of the tax impact associated with share-based awards, Exponent’s consolidated tax rate was 28.7% through the first three quarters of 2026, as compared to 28.2% for the same period last year.

EBITDA increased to $130.8 million, or 28.8% of revenues before reimbursements, through the first three quarters of 2026, as compared to $113.4 million, or 27.8% of revenues before reimbursements, in the same period of 2025.

Through the first three quarters of 2026, Exponent paid $46.1 million in dividends, repurchased $146.1 million of common stock, and closed the period with $114.7 million in cash and cash equivalents.

In a separate press release today, Exponent announced its quarterly cash dividend of $0.31 to be paid on December 18, 2026, and reiterated its intent to continue to pay quarterly dividends.

Business Overview

Exponent’s engineering and other scientific segment represented 85% of the Company’s revenues before reimbursements in the third quarter and through the first three quarters of 2026. Revenues before reimbursements in this segment increased 13% in the third quarter and through the first three quarters of 2026, as compared to the prior year period. Growth during the quarter was driven by strong user research activity spanning a broad set of challenges, including health applications, dynamic and unstructured real-world environments, and sensory perception. Dispute-related services involving chemical facilities, consumer products and advanced transportation technologies also drove growth in the quarter, as clients rely on Exponent in critical, high-stakes situations.

Exponent’s environmental and health segment represented 15% of the Company’s revenues before reimbursements in the third quarter and through the first three quarters of 2026. Revenues before reimbursements in this segment increased 3% in the third quarter and 4% through the first three quarters of 2026, as compared to the prior year period. Growth in this segment was driven by increased projects assessing the effects of chemicals on human health and the environment.

Business Outlook

“Our ability to scale our operating model in response to market demand resulted in 77% utilization and expanded profitability during the third quarter of 2026. We are encouraged by the market opportunities across the industries we serve and continue to strategically build upon our diversified portfolio of talent and capabilities,” commented Eric Anderson, Chief Financial Officer. “As we close out 2026, we are raising our full-year revenue and margin guidance, reflecting the strength of our year-to-date performance and our outlook for the remainder of the year. Looking ahead, we remain confident in Exponent’s long-term growth trajectory and our ability to capitalize on the strong demand for our differentiated expertise.”

For the fourth quarter of fiscal 2026 as compared to the same period one year prior, Exponent anticipates:

Revenues before reimbursements to grow 8% to 10%; and,
EBITDA to be 26.3% to 26.8% of revenues before reimbursements.

For the full fiscal year 2026 as compared to fiscal year 2025, Exponent anticipates:

Revenues before reimbursements to grow 10% to 11%; and,
EBITDA to be 28.0% to 28.3% of revenues before reimbursements.

“Rapid innovation continues to reshape industries as companies race to make physical products more intelligent, while expectations for safety, reliability, and performance continue to rise. Exponent is built for this moment. We help clients navigate these increasingly complex challenges, whether validating AI-enabled systems, strengthening critical infrastructure, or understanding how people interact with the technologies around them. Across these areas, our integrated platform brings the scientific and engineering expertise needed to deliver explainability, clarity, and trust. This distinctive ecosystem, together with strong long-term growth drivers, positions Exponent to deliver sustainable value for our clients and shareholders,” concluded Dr. Corrigan.

Today's Conference Call Information

Exponent will discuss its financial results in more detail on a conference call today, Thursday, October 29, 2026, starting at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. The audio of the conference call is available by dialing (844) 481-2781 or (412) 317-0672. A live webcast of the call will be available on the Investor Relations section of the Company's website at www.exponent.com/investors. For those unable to listen to the live webcast, a replay of the call will also be available on the Exponent website, or by dialing (855) 669-9658 or (412) 317-0088 and entering passcode 5957331#.

Use of non-GAAP Financial Measures

EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation, and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income, and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present, and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP.

Exponent has provided its outlook regarding EBITDA as a percentage of revenues before reimbursements. The Company has not reconciled this non-GAAP financial measure to the corresponding GAAP financial measure because guidance for the various reconciling items is not provided and the Company is unable to estimate with reasonable certainty the effect of these items without unreasonable effort. For example, the Company is unable to estimate with reasonable certainty the impact of equity awards on Exponent’s taxes without unreasonable effort. These items are uncertain, depend on various factors, and may have a material effect on Exponent’s results computed in accordance with GAAP. A reconciliation between the historical GAAP and non-GAAP financial measures presented in this release is provided in the financial tables at the end of this release.

About Exponent

Exponent brings together 90+ technical disciplines and 950+ consultants to help our clients navigate the increasing complexity of more than a dozen industries, connecting decades of pioneering work in failure analysis to develop solutions for a safer, healthier, more sustainable world.

Exponent’s consultants deliver the highest value by leveraging multidisciplinary expertise and resources from across Exponent’s offices in North America, Asia, and Europe. Exponent’s consultants, laboratories, databases, and computing resources work seamlessly together around the globe, enabling us to produce the breakthrough insights needed to help multinational companies, startups, law firms, insurance companies, governments, and society respond to incidents and push their products and processes forward.

Exponent may be reached at (888) 656-EXPO, info@exponent.com, or www.exponent.com.

Forward Looking Statements

Forward-looking statements notice

This news release contains, and incorporates by reference, certain “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995, and the rules promulgated pursuant to the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended) that are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. When used in this document and in the documents incorporated herein by reference, the words “intend,” “anticipate,” “believe,” “estimate,” “expect” and similar expressions, as they relate to the Company or its management, identify such forward-looking statements. Such statements reflect the current views of the Company or its management with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements. Factors that could cause or contribute to such material differences include the possibility that the demand for our services may decline as a result of changes in generally applicable and industry-specific economic conditions, the timing of engagements for our services, the effects of competitive services and pricing, the absence of backlog related to our business, our ability to attract and retain key employees, the effect of tort reform and government regulation on our business, and liabilities resulting from claims made against us. Additional risks and uncertainties are discussed in our Annual Report on Form 10-K under the heading “Risk Factors” and elsewhere in the report. The inclusion of such forward-looking information should not be regarded as a representation by the Company or any other person that the future events, plans, or expectations contemplated by the Company will be achieved. The Company undertakes no obligation to release publicly any updates or revisions to any such forward-looking statements.

Source: Exponent, Inc.

			Quarter Ended		Nine Months Ended
			October 2,	October 3,	October 2,	October 3,
			2026	2025	2026	2025
	Revenues before reimbursements		$153,063	$137,073	$453,740	$407,378
	Reimbursements		20,670	10,047	57,908	27,211
		Revenues	173,733	147,120	511,648	434,589
	Compensation and related expenses		90,038	87,726	282,018	261,103
	Other operating expenses		13,814	12,655	39,504	36,822
	Reimbursable expenses		20,670	10,047	57,908	27,211
	General and administrative expenses		7,334	7,654	20,940	18,806
			131,856	118,082	400,370	343,942
		Operating income	41,877	29,038	111,278	90,647
	Interest income, net		668	2,312	3,102	7,370
	Miscellaneous income (expense), net		448	7,267	11,718	15,175
			1,116	9,579	14,820	22,545
		Income before income taxes	42,993	38,617	126,098	113,192
EXPONENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Quarters Ended October 2, 2026 and October 3, 2025
(unaudited)
(in thousands, except per share data)
Revenues
Operating expenses
Other income (expense), net
Income taxes			12,050	10,573	36,191	31,945
		Net income	$30,943	$28,044	$89,907	$81,247
Net income per share:
	Basic		$0.64	$0.55	$1.84	$1.59
	Diluted		$0.64	$0.55	$1.83	$1.58
Shares used in per share computations:
	Basic		48,131	50,872	48,891	51,113
	Diluted		48,422	51,179	49,195	51,454

	October 2,	January 2,
	2026	2026
Assets
Cash and cash equivalents	$114,689	$221,930
Accounts receivable, net	209,604	181,507
Prepaid expenses and other assets	28,976	24,143
Total current assets	353,269	427,580
EXPONENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
October 2, 2026 and January 2, 2026
(unaudited)
(in thousands)
Current assets:
Property, equipment and leasehold improvements, net	69,900	71,981
Operating lease right-of-use asset	68,208	73,376
Goodwill	8,607	8,607
Other assets	193,092	195,975
	$693,076	$777,519
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$34,733	$30,942
Accrued payroll and employee benefits	121,993	121,302
Deferred revenues	18,503	18,868
Operating lease liability	6,533	6,890
Total current liabilities	181,762	178,002
Other liabilities	128,822	133,232
Operating lease liability	74,606	75,944
Total liabilities	385,190	387,178
Stockholders' equity:
Common stock	66	66
Additional paid-in capital	392,784	369,747
Accumulated other comprehensive loss	(2,496)	(2,290)
Retained earnings	712,318	668,423
Treasury stock, at cost	(794,786)	(645,605)
Total stockholders' equity	307,886	390,341
	$693,076	$777,519

			Quarter Ended		Nine Months Ended
			October 2,	October 3,	October 2,	October 3,
			2026	2025	2026	2025
EXPONENT, INC.
EBITDA and EBITDAS (1)
For the Quarters Ended October 2, 2026 and October 3, 2025
(unaudited)
(in thousands)
Net Income			$30,943	$28,044	$89,907	$81,247
Add back (subtract):
	Income taxes		12,050	10,573	36,191	31,945
	Interest income, net		(668)	(2,312)	(3,102)	(7,370)
	Depreciation and amortization		2,651	2,532	7,844	7,544
		EBITDA (1)	44,976	38,837	130,840	113,366
	Stock-based compensation		6,694	5,341	22,432	18,767
		EBITDAS (1)	$51,670	$44,178	$153,272	$132,133
(1) EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP.