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Exponent
(NASDAQ:EXPO)
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Rating:70Outperform
Price Target:
$63.00
▼(-7.42% Downside)
Action:Reiterated
Date:06/11/26
EXPO scores well on fundamentals and earnings-call outlook (strong profitability, low-to-moderate leverage, and reiterated growth/margin guidance with meaningful capital returns). The overall score is held back by weak technical trend signals and a relatively high P/E that limits valuation support, with margin compression and softer recent FCF momentum as additional watch items.
Positive Factors
Consistent high profitability
Sustained net margins near the high teens to low twenties indicate durable earnings power and pricing ability across multidisciplinary technical services. This margin profile supports reinvestment in talent, funds buybacks/dividends, and provides a cushion versus cyclical revenue swings, preserving long-term cash generation.
Negative Factors
Material gross‑margin compression
A multi-percentage-point decline in gross margin is a structural concern: it signals pricing pressure or higher direct costs that reduce operating leverage. Unless reversed by pricing, efficiency gains, or mix shifts toward higher‑value practices, this trend could permanently temper net margin expansion and cash conversion.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent high profitability
Sustained net margins near the high teens to low twenties indicate durable earnings power and pricing ability across multidisciplinary technical services. This margin profile supports reinvestment in talent, funds buybacks/dividends, and provides a cushion versus cyclical revenue swings, preserving long-term cash generation.
Read all positive factors
Exponent Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows profit contribution and margins for each business segment, highlighting which lines are most profitable and which absorb costs. Useful for spotting margin pressure, assessing operational efficiency, and deciding where management should allocate resources to maximize returns.
Shows profit contribution and margins for each business segment, highlighting which lines are most profitable and which absorb costs. Useful for spotting margin pressure, assessing operational efficiency, and deciding where management should allocate resources to maximize returns.
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The Fly
The FlyExponent (EXPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.76B
Dividend Yield1.66%
Average Volume (3M)598.18K
Price to Earnings (P/E)26.0
Beta (1Y)0.81
Revenue Growth7.82%
EPS Growth4.63%
CountryUS
Employees966
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)2.15
Shares Outstanding48,511,627
10 Day Avg. Volume671,252
30 Day Avg. Volume598,179
Financial Highlights & Ratios
PEG Ratio-14.37
Price to Book (P/B)9.15
Price to Sales (P/S)6.14
P/FCF Ratio29.19
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue4.53
Enterprise Value/Gross Profit19.02
Enterprise Value/Ebitda16.84
Forecast
1Y Price Target
$73.96Price Target Upside8.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.26
Revenue Forecast (FY)$580.77M
Exponent Business Overview & Revenue Model
Company Description
Exponent, Inc. functions as a global leader in scientific and engineering consulting, operating through its subsidiaries. The firm's activities are divided into two principal segments: Engineering and Other Scientific, and Environmental and Health...
How the Company Makes Money
Exponent primarily makes money by billing clients for professional services provided by its engineers, scientists, and technical consultants. Revenue is largely generated on a time-and-materials basis (hourly or daily rates multiplied by consultan...
Exponent Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial performance with double-digit top-line growth, expanding EBITDA and margins, increased staffing and utilization, and active capital returns via dividends and substantial buybacks. Management reiterated a confident outlook and maintained full-year guidance, highlighting diversified demand driven by AI integration, energy, data centers, robotics, and medical device work. Headwinds include higher G&A and stock-based compensation costs, modest growth in the environmental & health segment, lower interest income, and some cyclical risk in consumer projects. On balance the positives (robust growth, margin expansion, talent investment, and shareholder returns) materially outweigh the negatives.Positive Updates
Revenue and Net Revenue Growth
Total revenues increased 14% year over year to $166.3 million; revenues before reimbursements (net revenues) rose 10% to $151.8 million in Q1 2026.
Negative Updates
Slower Growth in Environmental & Health Segment
Environmental & health revenues before reimbursements grew only 2% in Q1 2026 and represent 15% of net revenues, indicating more modest momentum in this area compared with the engineering segment (+12%).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Net Revenue Growth
Total revenues increased 14% year over year to $166.3 million; revenues before reimbursements (net revenues) rose 10% to $151.8 million in Q1 2026.
Read all positive updates
Company Guidance
Exponent’s guidance for Q2 2026 and the full year calls for revenues before reimbursements to grow in the high‑single digits year‑over‑year, with Q2 EBITDA of 27.0%–27.8% of revenues before reimbursements and full‑year EBITDA of 27.6%–28.1%; Q2 utilization is expected to be 72%–73% (vs. 72% a year ago) and full‑year utilization 72.5%–73% (vs. 72.5% in 2025); average technical FTEs are expected to increase ~5% y/y (4%–5% for the full year); realized rate increases of 3%–3.5% are expected for Q2 and the year; Q2 stock‑based compensation is forecast at $6.5M–$6.7M and full‑year stock‑based compensation at $27.9M–$28.4M; other operating expenses are expected to be $12.8M–$13.3M in Q2 and $53M–$53.5M for the year; G&A is guided to $7.2M–$7.7M in Q2 and $28.5M–$29.5M for the year; interest income is expected to be $0.7M–$0.9M per quarter and miscellaneous income about $0.3M per quarter; management does not expect any further tax benefit or loss from share‑based awards for the remainder of 2026, the Q2 tax rate is ~28% (vs. 27.9% prior‑year Q2) and the full‑year tax rate is expected to be 28.5% (vs. 28% in 2025), and full‑year capital expenditures are forecast at $12M–$14M.Exponent Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
80
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 602.81M | 582.01M | 558.51M | 536.77M | 513.29M | 466.27M |
| Gross Profit | 143.45M | 145.31M | 142.28M | 135.76M | 164.50M | 124.21M |
| EBITDA | 161.98M | 157.38M | 157.06M | 144.81M | 139.31M | 132.32M |
| Net Income | 108.93M | 106.01M | 109.00M | 100.34M | 102.33M | 101.20M |
Balance Sheet | ||||||
| Total Assets | 687.38M | 808.62M | 777.27M | 646.78M | 586.66M | 683.74M |
| Cash, Cash Equivalents and Short-Term Investments | 118.55M | 221.93M | 258.90M | 187.15M | 161.46M | 297.69M |
| Total Debt | 81.04M | 82.83M | 81.48M | 28.26M | 18.60M | 14.97M |
| Total Liabilities | 349.04M | 418.27M | 356.20M | 290.69M | 265.91M | 266.67M |
| Stockholders Equity | 338.34M | 390.34M | 421.07M | 356.08M | 320.75M | 417.06M |
Cash Flow | ||||||
| Free Cash Flow | 113.39M | 122.34M | 137.60M | 111.00M | 81.76M | 117.74M |
| Operating Cash Flow | 123.48M | 131.73M | 144.54M | 127.35M | 93.81M | 124.57M |
| Investing Cash Flow | -10.09M | -9.39M | -6.94M | -16.36M | -12.04M | 38.18M |
| Financing Cash Flow | -240.06M | -160.43M | -65.11M | -86.01M | -215.98M | -62.75M |
Exponent Technical Analysis
Positive
68.05
Price Trends
59.57
Positive
63.90
Negative
67.02
Negative
Market Momentum
0.22
Negative
58.74
Neutral
79.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPO, the sentiment is Positive. The current price of 68.05 is above the 20-day moving average (MA) of 58.09, above the 50-day MA of 59.57, and above the 200-day MA of 67.02, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 58.74 is Neutral, neither overbought nor oversold. The STOCH value of 79.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXPO.
Exponent Risk Analysis
Exponent disclosed 35 risk factors in its most recent earnings report. Exponent reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Exponent Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.76B | 26.00 | 27.94% | 1.66% | 7.82% | 4.63% | |
70 Outperform | $4.63B | 18.05 | 15.14% | ― | 5.60% | 14.32% | |
67 Neutral | $7.49B | 9.02 | 81.03% | 2.60% | -6.37% | -5.06% | |
67 Neutral | $1.36B | 16.13 | 8.35% | 0.65% | -9.45% | -20.88% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.47B | 14.82 | 21.83% | ― | 11.79% | -13.03% | |
60 Neutral | $948.71M | 20.16 | 23.64% | 0.97% | 10.50% | -3.09% |
* Industrials Sector Average
EXPO
Exponent
60.98
-13.27
-17.88%
BAH
Booz Allen
62.45
-45.08
-41.92%
CRAI
Cra International
146.79
-47.15
-24.31%
FCN
FTI Consulting
153.59
-12.41
-7.48%
HURN
Huron Consulting
97.16
-41.47
-29.91%
ICFI
Icf International
74.99
-12.76
-14.54%
Exponent Corporate Events
Executive/Board ChangesShareholder Meetings
Exponent Shareholders Elect Directors, Name New Board Chair
Positive
Jun 10, 2026
On June 4, 2026, Exponent held its annual meeting of stockholders, at which shareholders elected directors George H. Brown, Catherine Ford Corrigan, Ph.D., Carol Lindstrom, Karen A. Richardson, Richard L. Schlenker Jr., and Debra L. Zumwalt, and c...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Exponent Posts Strong Q1 Results, Boosts Capital Returns
Positive
Apr 30, 2026
On April 30, 2026, Exponent, Inc. reported strong first quarter 2026 results, with total revenues rising 14% year over year to $166.3 million and revenues before reimbursements up 10% to $151.8 million, while net income increased to $29.6 million,...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Exponent announces leadership reshuffle and board transition plans
Positive
Apr 6, 2026
On April 6, 2026, Exponent announced a leadership reshuffle that will take effect on May 1, 2026, elevating long‑time executive John D. Pye to president and promoting Eric Anderson to chief financial officer, both reporting to CEO Catherine ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.