{"id":1015460,"date":"2026-10-29T19:21:19","date_gmt":"2026-10-29T23:21:19","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/exponent-reports-third-quarter-2026-financial-results\/"},"modified":"2026-10-29T19:21:19","modified_gmt":"2026-10-29T23:21:19","slug":"exponent-reports-third-quarter-2026-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/exponent-reports-third-quarter-2026-financial-results\/","title":{"rendered":"Exponent Reports Third Quarter 2026 Financial Results"},"content":{"rendered":"
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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.<\/p>\n

\u201cExponent delivered another strong quarter, with double-digit growth in revenues and earnings, reflecting continued demand for our specialized, integrated engineering and scientific expertise,\u201d stated Dr. Catherine Corrigan, Chief Executive Officer. \u201cUser 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.<\/p>\n

\u201cThese 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,\u201d Dr. Corrigan continued.<\/p>\n

\n Third Quarter Financial Results<\/strong>\n <\/p>\n

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.<\/p>\n

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\u2019s consolidated tax rate was 28.0% in the third quarter of 2026, as compared to 27.4% for the same period in 2025.<\/p>\n

EBITDA1<\/sup> 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.<\/p>\n

\n Year to Date Financial Results<\/strong>\n <\/p>\n

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.<\/p>\n

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\u2019s consolidated tax rate was 28.7% through the first three quarters of 2026, as compared to 28.2% for the same period last year.<\/p>\n

EBITDA1<\/sup> 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.<\/p>\n

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.\u00a0\u00a0<\/p>\n

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.<\/p>\n

\n Business Overview<\/strong>\n <\/p>\n

Exponent\u2019s engineering and other scientific segment represented 85% of the Company\u2019s 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.<\/p>\n

Exponent\u2019s environmental and health segment represented 15% of the Company\u2019s 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.<\/p>\n

\n Business Outlook<\/strong>\n <\/p>\n

\u201cOur 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,\u201d commented Eric Anderson, Chief Financial Officer. \u201cAs 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\u2019s long-term growth trajectory and our ability to capitalize on the strong demand for our differentiated expertise.\u201d<\/p>\n

For the fourth quarter of fiscal 2026 as compared to the same period one year prior, Exponent anticipates:<\/p>\n