Exponent’s third quarter performance was led by robust demand for its dispute-related consulting work, particularly in the energy, transportation, life sciences, and construction sectors. Management highlighted that reactive projects—those addressing urgent client challenges such as litigation or failure analysis—were the primary growth driver, while proactive risk management and regulatory consulting also contributed, especially in utilities and chemicals. CEO Catherine Corrigan noted, “Our diversified portfolio and deep technical capabilities position us well to capture this demand and deliver meaningful value for our clients.” Management did acknowledge a slowdown in consumer electronics activity, though they observed signs of improvement as the quarter ended.

Is now the time to buy EXPO? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Exponent’s Q3 Earnings Call

• Andrew Nicholas (William Blair) asked about 2026 hiring plans and whether Exponent would exceed historical growth rates. CEO Catherine Corrigan stated recruitment will target sectors with the strongest demand, aiming for a 4–6% headcount increase.
• Andrew Nicholas (William Blair) inquired about AI’s penetration and its balance between proactive and reactive business. Corrigan explained AI is embedded across both, touching industries from regulated medical devices to transportation disputes.
• Andrew Nicholas (William Blair) requested a breakdown of growth between proactive and reactive segments. CFO Richard Schlenker clarified that reactive consulting drove most growth, while proactive work was flat but showed late-quarter improvement.
• Tyler Barishaw (Truist) asked about regulatory consulting and the impact of shifting regulatory environments. Corrigan noted continued strength in chemicals and medical devices, with only minor client delays from regulatory processes.
• Karandeep Singhania (UBS) questioned if hiring mix affected realized rate increases. Schlenker responded that increased junior hiring and work mix would likely bring rate realization back to historical levels, around 3–3.5%.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will be closely tracking (1) the pace and effectiveness of Exponent’s hiring in high-demand sectors like AI and digital health, (2) the recovery in proactive consulting, particularly in consumer electronics, and (3) the firm’s ability to sustain utilization and margin levels as work mix shifts. Additional attention will be paid to the influence of regulatory changes and macroeconomic factors on client consulting demand.

Exponent currently trades at $73.66, up from $66.79 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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