{"id":987581,"date":"2026-07-30T17:20:23","date_gmt":"2026-07-30T21:20:23","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/exponent-reports-second-quarter-2026-financial-results\/"},"modified":"2026-07-30T17:20:23","modified_gmt":"2026-07-30T21:20:23","slug":"exponent-reports-second-quarter-2026-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/exponent-reports-second-quarter-2026-financial-results\/","title":{"rendered":"Exponent Reports Second Quarter 2026 Financial Results"},"content":{"rendered":"
\n

MENLO PARK, Calif., July 30, 2026 (GLOBE NEWSWIRE) — Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the second quarter of fiscal year 2026 ended July 3, 2026.<\/p>\n

\u201cExponent delivered another strong quarter, with double-digit growth in revenues and earnings reflecting continued demand for our specialized expertise across industries,\u201d stated Dr. Catherine Corrigan, Chief Executive Officer. \u201cOur proactive work experienced strong growth in the quarter, led by demand for user research studies as clients accelerate the development of AI-enabled products across an increasingly diverse range of hardware form factors and applications, with engagements continuing to expand in scope, scale and complexity. Proactive activity was also supported by increased risk management and infrastructure-related engagements in the utility sector. Reactive work grew, with strong demand for our dispute-related expertise from the consumer products, chemicals, and transportation industries.<\/p>\n

\u201cThese results reflect the powerful long-term trends driving our business, including rapid technological innovation, increasing complexity, growing energy demand, investment in resilient power and digital infrastructure, and rising expectations for safety, reliability, and performance. As artificial intelligence becomes embedded in an expanding array of physical products and systems, organizations face increasingly daunting human factors, operational, and risk management challenges that extend well beyond software. Clients turn to Exponent when they encounter critical questions involving the interaction of technology, people, and complex real-world environments, particularly when the consequences of failure are exceptionally high. Our multidisciplinary teams provide the independent, science-based insights needed to accelerate innovation, improve decision-making, and reduce high-consequence risk in areas where few organizations possess comparable expertise,\u201d Dr. Corrigan continued.<\/p>\n

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

Total revenues and revenues before reimbursements for the second quarter of 2026 increased 21% to $171.6 million and 12% to $148.9 million, respectively, as compared to $142.0 million and $132.9 million in the second quarter of 2025.<\/p>\n

Net income increased to $29.4 million, or $0.60 per diluted share, in the second quarter of 2026, as compared to $26.6 million, or $0.52 per diluted share, in the same period of 2025. The tax impact associated with share-based awards was immaterial in both the second quarter of 2026 and 2025. Exponent\u2019s consolidated tax rate was 27.9% in the second quarter of 2026, unchanged from the same period in 2025.<\/p>\n

EBITDA1<\/sup> increased to $42.7 million, or 28.7% of revenues before reimbursements, in the second quarter of 2026, as compared to $37.0 million, or 27.8% of revenues before reimbursements in the second quarter of 2025.<\/p>\n

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

Total revenues and revenues before reimbursements for the first half of 2026 increased 18% to $337.9 million and 11% to $300.7 million, respectively, as compared to $287.5 million and $270.3 million in the same period of 2025.<\/p>\n

Net income increased to $59.0 million, or $1.19 per diluted share, in the first half of 2026, as compared to $53.2 million, or $1.03 per diluted share, in the same period of 2025. During the first half of 2026, we realized a negative tax impact associated with share-based awards of $0.8 million as compared to $0.5 million in the first half of 2025. Inclusive of the tax impact associated with share-based awards, Exponent\u2019s consolidated tax rate was 29.0% in the first half of 2026, as compared to 28.7% for the same period last year. <\/p>\n

EBITDA1<\/sup>\u00a0increased to $85.9 million, or 28.6% of revenues before reimbursements, in the first half of 2026, as compared to $74.5 million, or 27.6% of revenues before reimbursements, in the first half of 2025.<\/p>\n

For the first half of 2026, Exponent paid $31.3 million in dividends, repurchased $146.1 million of common stock, and closed the period with $66.6 million in cash and cash equivalents.<\/p>\n

In a separate press release today, Exponent announced its quarterly cash dividend of $0.31 to be paid on September 18, 2026, and reiterated its intent to continue to pay quarterly dividends. Additionally, Exponent\u2019s Board of Directors approved an increase in the current stock repurchase program of $50 million.<\/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 second quarter and through the first two quarters of 2026. Revenues before reimbursements in this segment increased 13% during the second quarter and 12% during the first half of 2026, as compared to the prior year period. Growth during the quarter was driven by strong user research activity in consumer electronics, risk management and infrastructure-related work in the utilities sector, and reactive engagements across the consumer products, chemicals, and transportation industries.<\/p>\n

Exponent\u2019s environmental and health segment represented 15% of the Company\u2019s revenues before reimbursements in the second quarter and through the first two quarters of 2026. Revenues before reimbursements in this segment increased 9% during the second quarter and 5% during the first half of 2026, as compared to the same period in the prior year. Growth during the quarter was driven by engagements evaluating the impacts of chemicals on human health and the environment.<\/p>\n

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

\u201cOur second quarter results demonstrate continued disciplined execution across the business, with strong utilization of 74% contributing to performance that exceeded our expectations,\u201d commented Eric Anderson, Chief Financial Officer. \u201cWe continued to invest in our talent and capabilities while maintaining a disciplined capital allocation strategy, returning a combined $272 million to shareholders over the last twelve months through share repurchases and our ongoing dividend program.\u201d<\/p>\n

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