FTI Consulting faces 10% stock drop amid U.S. antitrust market share loss

FTI Consulting, Inc. is facing significant challenges as its market share in U.S. antitrust consulting has declined, impacting its overall financial performance. This news comes amid the release of Sycamore Capital Management’s Q2 2026 investor letter, which highlighted FTI's struggles. As of August 12, 2026, FTI's shares closed at $152.68, reflecting a nearly 10% drop over the past year, with a market capitalization of $4.22 billion.

The decline in FTI Consulting’s market position is attributed to disappointing earnings results for the first quarter of 2026. Although the company's revenue held steady, earnings per share fell short of analysts' expectations due to rising selling, general, and administrative expenses. Management has indicated that recovery may take several quarters, raising concerns among investors about the firm's ability to regain its footing in a competitive market. Meanwhile, the Economic Consulting segment, which includes antitrust advisory services, has lost its competitive edge, exacerbating FTI’s financial challenges.

In the investor letter, Sycamore emphasized the need for cautious evaluation of current investments, citing the increasing influence of artificial intelligence stocks that seem to offer better growth potential. FTI Consulting remains on the radar of some hedge funds, with 25 portfolios holding its shares as of the end of the first quarter of 2026, unchanged from the prior quarter. However, the firm’s performance and outlook have led some investors to seek opportunities elsewhere, particularly in AI-driven companies.

Looking ahead, FTI Consulting's management has authorized a $307 million share repurchase program, signaling confidence in the firm’s long-term prospects. Nevertheless, the path to recovery may be slow, and the company must navigate a challenging economic landscape to restore its position. Investors will be watching closely to see if FTI can regain market share and improve its financial metrics in the coming quarters.