Key Highlights

  • Total revenues rose 18% to $173.7 million, and revenues before reimbursements rose 12% to $153.1 million.
  • Net income was $30.9 million, or $0.64 per diluted share, versus $0.55 a year earlier.
  • EBITDA reached $45.0 million, or 29.4% of revenues before reimbursements, up from 28.3%.
  • Utilization was 77% in the quarter, and full-year guidance was raised.
  • A quarterly Dividend of $0.31 will be paid on December 18, 2026.

Third-quarter Revenue and Earnings grow at a double-digit pace

Exponent (NASDAQ:EXPO) provides specialized engineering and scientific consulting, with multidisciplinary teams that investigate failures, assess risk and study how people interact with products and technology. It reported results for the third quarter of fiscal 2026, which ended October 2, 2026, on October 29, 2026. Total revenues rose 18% to $173.7 million from $147.1 million, and revenues before reimbursements rose 12% to $153.1 million from $137.1 million.

Net income increased to $30.9 million, or $0.64 per diluted share, from $28.0 million, or $0.55. The consolidated tax rate was 28.0%, compared with 27.4% a year earlier, and the tax benefit from share-based awards was immaterial in both periods.

User research and dispute work drive the engineering segment

The engineering and other scientific segment represented 85% of revenues before reimbursements in the quarter, and its revenues before reimbursements increased 13%. Chief Executive Officer Catherine Corrigan said user research studies were a strong contributor, as clients move quickly to understand how people interact with technology across a widening range of devices and applications.

Dispute-related services involving chemical facilities, consumer products and advanced transportation technologies also contributed, and reactive work grew on top of a strong prior-year quarter.

The environmental and health segment made up the other 15% of revenues before reimbursements. Its revenues before reimbursements grew 3% in the quarter, helped by more projects assessing the effects of chemicals on human health and the environment.

EBITDA Margin widens to 29.4% on 77% utilization

EBITDA rose to $45.0 million, or 29.4% of revenues before reimbursements, from $38.8 million, or 28.3%. That is an increase of about 16% in dollars on a calculated basis, outpacing the 12% growth in revenues before reimbursements.

Chief Financial Officer Eric Anderson said the ability to scale the operating model in response to Demand resulted in 77% utilization and expanded profitability during the quarter.

Nine-month results and Capital returns

For the first three quarters, total revenues rose 18% to $511.6 million, and revenues before reimbursements rose 11% to $453.7 million. Net Income was $89.9 million, or $1.83 per diluted share, compared with $81.2 million, or $1.58. EBITDA for the period was $130.8 million, or 28.8% of revenues before reimbursements, against $113.4 million, or 27.8%.

Through the first three quarters, Exponent paid $46.1 million in dividends and repurchased $146.1 million of common stock. It closed the period with $114.7 million of cash and cash equivalents. On a calculated basis, dividends and repurchases together came to about $192.2 million, more than double nine-month net income of $89.9 million.

The board declared a quarterly Cash Dividend of $0.31 per share, payable on December 18, 2026 and reiterated its intent to keep paying quarterly dividends.

Raised guidance sets the bar for the fourth quarter

Management said it is raising full-year revenue and margin guidance. For fiscal 2026, it expects revenues before reimbursements to grow 10% to 11% and EBITDA to be 28.0% to 28.3% of revenues before reimbursements.

For the fourth quarter, the company anticipates revenues before reimbursements to grow 8% to 10% from the same period a year earlier, with EBITDA of 26.3% to 26.8% of revenues before reimbursements. That implies a lower margin than the 29.4% reported in the third quarter.

Readers following the name will likely watch whether utilization holds near 77%, how user research demand develops, and the pace of repurchases.