The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how business process outsourcing & consulting stocks fared in Q3, starting with FTI Consulting (NYSE: FCN).

The sector stands to benefit from ongoing digital transformation, increasing corporate demand for cost efficiencies, and the growing complexity of regulatory and cybersecurity landscapes. For those that invest wisely, AI and automation capabilities could emerge as competitive advantages, enhancing process efficiencies for the companies themselves as well as their clients. On the flip side, AI could be a headwind as well as the technology could lower the barrier to entry in the space and give rise to more self-service solutions. Additional challenges in the years ahead could include wage inflation for highly skilled consultants and potential regulatory scrutiny on outsourcing practices—especially in industries like finance and healthcare where who has access to certain data matters greatly.

The 8 business process outsourcing & consulting stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was in line.

While some business process outsourcing & consulting stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.7% since the latest earnings results.

FTI Consulting (NYSE: FCN)

With a team of experts deployed across 30+ countries to tackle complex business challenges, FTI Consulting (NYSE: FCN) is a global business advisory firm that helps organizations manage change, mitigate risk, and resolve disputes across financial, legal, operational, and regulatory matters.

FTI Consulting reported revenues of $956.2 million, up 3.3% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

Steven H. Gunby, CEO and Chairman of FTI Consulting, commented, “Notwithstanding major headwinds in a couple of our businesses, we delivered, yet again, record revenues and earnings this quarter. These tremendous results, to me, confirm once again the power of our team and the strength of our continued commitment to invest behind great professionals who help clients navigate their most significant opportunities and challenges.”

FTI Consulting delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 4% since reporting and currently trades at $162.08.

Is now the time to buy FTI Consulting? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: CRA (NASDAQ: CRAI)

Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ: CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy.

CRA reported revenues of $185.9 million, up 10.8% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with a beat of analysts’ EPS and revenue estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.9% since reporting. It currently trades at $174.34.

Is now the time to buy CRA? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Concentrix (NASDAQ: CNXC)

With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Concentrix reported revenues of $2.48 billion, up 4% year on year, exceeding analysts’ expectations by 1%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.

As expected, the stock is down 39.3% since the results and currently trades at $33.37.

Read our full analysis of Concentrix’s results here.

Exponent (NASDAQ: EXPO)

With a team of over 800 consultants holding advanced degrees in 90+ technical disciplines, Exponent (NASDAQ: EXPO) is a science and engineering consulting firm that investigates complex problems and provides expert analysis for clients across various industries.

Exponent reported revenues of $137.1 million, up 9.6% year on year. This result beat analysts’ expectations by 4%. It was a very strong quarter as it also recorded an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Exponent achieved the biggest analyst estimates beat among its peers. The stock is up 1.2% since reporting and currently trades at $67.63.

Read our full, actionable report on Exponent here, it’s free for active Edge members.

Huron (NASDAQ: HURN)

Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ: HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions.

Huron reported revenues of $441.3 million, up 16.7% year on year. This number surpassed analysts’ expectations by 2.3%. Overall, it was a very strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Huron had the weakest full-year guidance update among its peers. The stock is up 6.8% since reporting and currently trades at $162.90.

Read our full, actionable report on Huron here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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