Exponent's Q4 revenue rises 7.8%, beats expectations

Overview

• Engineering consultancy's Q4 revenue rose 7.8%, beating analyst expectations

• Net income for Q4 increased from the previous year

• Company announced an increase in quarterly cash dividend

Outlook

• Exponent anticipates Q1 2026 revenues to grow in high-single digits

• Company expects Q1 2026 EBITDA to be 27.5% to 28.5% of revenues

• Exponent forecasts full-year 2026 revenues to grow in high-single digits

Result Drivers

• USER RESEARCH DEMAND - Growth in Q4 driven by increased demand for user research services in consumer electronics sector

• RISK MANAGEMENT EXPANSION - Expanded risk management work within utilities contributed to Q4 growth

• FAILURE ANALYSIS AND DISPUTES - Growth in reactive engagements led by failure analysis and dispute-related activities across sectors

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Exponent Inc is $85.50, about 22% above its February 4 closing price of $70.09

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release: ID:nGNX8BGLsR

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