What Exponent (EXPO) said on its Q3 earnings call. October 29, 2026 Key points. * Exponent delivered strong Q3 results: Total revenue rose 18% year over year to $173.7 million, net revenue increased 12% to $153.1 million, and diluted EPS climbed 16% to $0.64. Higher utilization and broad demand helped expand EBITDA margins to 29.4%. * AI-related consulting is becoming a growing opportunity: Management estimates AI directly contributes 15% to 20% of 2026 business, spanning data-center infrastructure, autonomous vehicles, AI testing, and investigations into AI-generated decisions. * Exponent raised its full-year 2026 outlook: The company now expects 10% to 11% net-revenue growth, a 28% to 28.3% EBITDA margin, and utilization of 73.5% to 74%, while continuing dividends, evaluating acquisitions, and potentially repurchasing shares during pullbacks. * Interested in Exponent? Here are five stocks we like better. Exponent NASDAQ: EXPO reported third-quarter 2026 revenue and earnings growth as demand remained strong for its engineering and scientific consulting services, particularly in user research, product safety, failure analysis and dispute-related work. Total revenue increased 18% year over year to $173.7 million, while net revenue, which excludes reimbursable expenses, rose 12% to $153.1 million. Net income increased 10% to $30.9 million, and diluted earnings per share rose 16% to $0.64 from $0.55 a year earlier. Chief Executive Officer Catherine Corrigan said the quarter reflected demand for the company's specialized expertise as technology becomes more integrated with physical products, infrastructure and human behavior. She cited growth in user research as well as disputes, failure analysis and product-safety work involving chemicals, consumer products and transportation. Utilization and operating results. Exponent generated third-quarter EBITDA of $45 million, up 16% from the prior-year period. EBITDA margin expanded to 29.4% of net revenue from 28.3% a year earlier. Billable hours increased 8% to approximately 405,000, while the company's average technical full-time-equivalent workforce grew 4% to 1,016 employees. Utilization rose to 76.7% from 74.1%, and the realized billing-rate increase was approximately 4%. During the call, Chief Financial Officer Eric Anderson said the higher utilization was driven by broad-based demand rather than calendar-related factors. He pointed to dispute-related activity across consumer products, chemicals and transportation, along with stronger-than-expected proactive study work. A project that represented 4% of revenue in the second quarter declined to 2.5% in the third quarter. Anderson said the company expects that project to represent less than 1% of revenue in the fourth quarter. Compensation expense, adjusted for deferred-compensation gains and losses, rose 11%. Stock-based compensation increased to $6.7 million from $5.3 million. Other operating expenses rose 9% to $13.8 million, reflecting investments in corporate infrastructure, while general and administrative expense declined 4% to $7.3 million, primarily because the company held a smaller firmwide principals meeting than the prior year's managers meeting. Discover more MarketBeat All Access MarketBeat Research Tools Over the past 12 months, Exponent used $171 million for common-stock repurchases, reducing average diluted shares outstanding by 5% to 48.4 million. The company did not repurchase shares during the third quarter. It also distributed $14.7 million through dividends during the quarter. Segment performance and AI-related demand. The engineering and other scientific segment, which accounted for 85% of net revenue, posted 13% net-revenue growth. The company attributed the increase to user research involving health applications, dynamic real-world environments and sensory perception, as well as disputes concerning chemical facilities, consumer products and advanced transportation technologies. The environmental and health segment, representing 15% of net revenue, grew 3%. Anderson said growth in that business was supported by projects assessing the effects of chemicals on human health and the environment. President John Pye said Exponent estimates that artificial intelligence is a direct component of roughly 15% to 20% of its business this year. The company's AI-related work spans infrastructure supporting AI systems, including data-center components and cooling systems, as well as applications involving data used to train systems and testing of AI performance in real-world conditions. Pye said clients are increasingly asking Exponent to assess AI-generated recommendations, including recommendations related to materials and formulations, and to investigate why AI systems made certain decisions in vehicles, devices or equipment. He said such projects remain early but are growing. In response to analyst questions, executives said AI-related reactive work already includes matters involving advanced driver-assistance systems and autonomous vehicles. Executive Vice President Rich Schlenker also cited work on data-center fires, liquid-cooling corrosion, router failures and construction disputes related to AI systems. Corrigan said medical devices could represent another developing area for AI-related reactive work, particularly as wearable technologies make health-related assessments and decisions. Hiring priorities and outlook. Management said it is increasing recruiting efforts in response to demand, including university recruiting, lateral hiring from competitors and industry, and hiring from regulatory organizations. Corrigan identified human factors, biomechanics, thermal science, polymers, metallurgy, energy storage, health and environmental expertise as areas of focus. For the fourth quarter, Exponent expects net revenue growth of 8% to 10% year over year and EBITDA margin of 26.3% to 26.8% of net revenue. Anderson said the outlook assumes utilization of 69% to 70%, which is seasonally lower than the third quarter because of holidays and vacations but consistent with continued robust activity. He noted that the company faces a strong prior-year comparison, when fourth-quarter utilization was 69.2%. For full-year 2026, Exponent raised its outlook and now expects: * Net revenue growth of 10% to 11%. * EBITDA margin of 28% to 28.3%, compared with 27.6% in 2025. * Average technical employee growth of 4.7% to 5%. * Full-year utilization of 73.5% to 74%, compared with 72.5% in 2025. * Realized rate growth of 3.7% to 4%. * Capital expenditures of $10 million to $12 million. Management said it plans to continue paying dividends and may repurchase shares during stock-price pullbacks. Anderson said the company also will evaluate potential small acquisitions and other business investments while maintaining its existing capital-allocation approach. About Exponent (NASDAQ:EXPO). Exponent, Inc is a science and engineering consulting company that helps clients investigate complex technical issues, manage risks, and develop solutions. Its consultants work across disciplines including engineering, materials science, biomechanics, human factors, environmental science, health, data sciences, and economics. The company provides failure analysis, product safety and testing, accident reconstruction, environmental and health assessments, regulatory support, and expert testimony. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider Exponent, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Exponent wasn't on the list. 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Exponent Q2 earnings call highlights. July 30, 2026 Key points. * Strong Q2 performance: Exponent's revenue rose 21% year over year to $171.6 million, while net revenue increased 12% to $148.9 million. Net income grew 11% to $29.4 million, and diluted EPS rose to $0.60 from $0.52. * AI-related demand broadened: Growth was driven by user research for AI-enabled products, including wearables and smart devices, as well as utility risk management and dispute-related consulting in consumer products, chemicals and transportation. * Outlook and shareholder returns improved: Exponent raised its 2026 forecast to 9%-10% net revenue growth and a 27.8%-28.1% EBITDA margin. The company repurchased $67.4 million of stock in Q2, paid $14.8 million in dividends and authorized an additional $50 million for buybacks. * Five stocks to consider instead of Exponent. Exponent NASDAQ: EXPO reported double-digit revenue and earnings growth for the second quarter of 2026, supported by demand for user research involving artificial intelligence-enabled products, utility-sector risk management work, and dispute-related consulting across consumer products, chemicals and transportation. Total revenue increased 21% year over year to $171.6 million, while revenue before reimbursements, which the company calls net revenue, rose 12% to $148.9 million. Net income increased 11% to $29.4 million, and diluted earnings per share rose 15% to $0.60 from $0.52 a year earlier. Chief Executive Officer Catherine Ford Corrigan said the company's proactive work was led by demand for user research as clients accelerated development of AI-enabled products across a wider range of hardware formats and applications. Reactive work also grew, with clients seeking dispute-related expertise in consumer products, chemicals and transportation. AI-Enabled product research drives growth. Corrigan said Exponent's user research engagements are becoming broader and more complex, often requiring a combination of human factors, biomechanics, engineering and data-science expertise. The company conducts studies designed to assess how people interact with products and technologies, including smart glasses, immersive technologies and health and wellness wearables. The second quarter also benefited from one large user research study that represented about 4% of net revenue, above Exponent's prior expectation that the project would account for roughly 2% of net revenue. Chief Financial Officer Eric Anderson said the project expanded in scope during the quarter, moderated toward the end of the period, and is expected to continue at a level of approximately 2% of net revenue through the rest of the year. Anderson said the broader user-research business has expanded in the number of clients, projects and types of devices being evaluated. Corrigan said the company is seeing the work diversify beyond consumer electronics and into life sciences, including health-related wearables and more sophisticated medical-device applications. Discover more Cryptocurrency News Stock Market News Stock Market Holidays During the question-and-answer session, Corrigan said AI is contributing to both proactive and reactive demand. In reactive work, she cited advanced driver-assistance technologies, where automotive product-liability matters increasingly involve questions around system performance, automated braking, driver distraction and driver monitoring. She also identified data-center infrastructure as a potential source of failure-analysis work involving cooling systems, power inverters and battery energy-storage systems. Utility, chemical and transportation demand. Exponent said proactive activity was also supported by risk-management and infrastructure engagements in the utility sector. The company said clients are assessing the resilience and reliability of critical systems amid higher power demand, extreme weather and increasing electric-grid complexity. In its reactive business, the company cited demand for product-safety, recall, incident-investigation and dispute work in consumer products. Chemical-sector activity included evaluating legacy substances and emerging chemicals of concern, while transportation work included failure analysis related to advanced driver-assistance systems. President John Pye said AI is moving beyond purely digital applications and into physical products and systems such as vehicles, wearables, infrastructure and robotic systems. He said these technologies must operate reliably in unpredictable real-world conditions, creating a need for expertise across engineering, physical sciences, data science and human factors. Corrigan identified consumer electronics, chemicals and utilities as key current verticals for proactive work. She said Exponent also sees opportunities in transportation and medical devices as regulation, product complexity and AI integration increase. Margins, utilization and capital returns. Second-quarter EBITDA rose 16% to $42.7 million. EBITDA margin was 28.7% of net revenue, compared with 27.8% in the prior-year quarter. Billable hours increased 8% to approximately 390,000. Average technical full-time employees increased 6% to 1,012, while utilization rose to 74% from 72% a year earlier. The company's realized rate increase was about 4% during the quarter. The engineering and other scientific segment, representing 85% of net revenue, recorded 13% net revenue growth. The environmental and health segment, representing 15% of net revenue, grew net revenue 9%, driven by work evaluating chemicals' effects on human health and the environment. Exponent repurchased $67.4 million of common stock during the quarter at an average price of $59.88 per share and paid $14.8 million in dividends. Over the past 12 months, the company returned $272 million to shareholders, including $211 million in share repurchases and $61 million in dividends. Its board approved a further $50 million increase to the stock-repurchase program. Anderson said the company expects to remain active in repurchasing stock when shares pull back, though at a lower pace than in the first half of 2026 or the second half of 2025. He said Exponent expects to generate more than $100 million of free cash flow in the second half of 2026. Full-Year outlook raised. Exponent raised its 2026 outlook and now expects net revenue growth of 9% to 10%, with EBITDA representing 27.8% to 28.1% of net revenue. The company previously did not state its earlier full-year targets during the call. For the third quarter, Exponent expects net revenue growth of 8% to 10% year over year and EBITDA margin of 28.0% to 28.5%. It expects average technical full-time-equivalent employees to rise 4% to 5% in the quarter and utilization of 74% to 75%. For the full year, Exponent expects technical employee growth of 4.5% to 5%, utilization of 72.5% to 73%, and realized rate increases of 3.5% to 4%. Capital expenditures are projected at $12 million to $14 million. About Exponent (NASDAQ:EXPO). Exponent, Inc NASDAQ: EXPO is an engineering and scientific consulting firm that offers multidisciplinary analysis and advisory services to clients across a range of industries. The company's expertise spans mechanical, materials and corrosion engineering, civil and structural engineering, electrical engineering, industrial hygiene, toxicology and health sciences, and failure analysis. Exponent provides support for product design, performance evaluation, litigation consulting, and regulatory compliance, helping manufacturers, insurers, law firms and government agencies address complex technical challenges. Founded in 1967 in Menlo Park, California, Exponent has grown from a small failure-analysis laboratory into a global consulting practice. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider Exponent, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Exponent wasn't on the list. While Exponent currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

Biomedical engineering alumna is making medical devices safer. Consultant Melissa Mendoza-Seale, PhD '22, balances clients' needs with life in the lab. Melissa Mendoza-Seale, PhD '22, uses the skills she gained at Binghamton University as a consultant in the biomedical industry. Image Credit: Provided. By Christina Forte '27 July 22, 2026 Melissa Mendoza-Seale, PhD '22, loves the hands-on work she can do in a biomedical engineering lab. So when she graduated from Watson College, she applied primarily to jobs in research. Her career path took her on a different route, though. Today, as a technical consultant, she blends scientific research with expert client support - and she still gets some lab time, too. After receiving her degree from Watson College, Mendoza-Seale worked her way up to senior associate at Exponent, a technical consulting firm that specializes in engineering and science. In her role, she supports medical device and pharmaceutical manufacturers as they navigate Food and Drug Administration (FDA) regulations, performs failure analysis of products, and conducts testing according to ASTM standards and International Organization for Standardization guidelines. To put it simply, she's making sure medical devices are up to par. While this wasn't always her plan, she learned that a consulting path would give her the opportunity to branch out from her specific field. In contrast to her graduate school experience where she focused on independent research, Exponent gave her the chance to contribute to scientific and engineering topics outside of her niche without having to completely give up lab work. "We not only provide consulting services and review the landscape of the field for our clients, but we also conduct a lot of the testing and investigations ourselves," Mendoza-Seale says. "That's what really intrigued me about Exponent. When I started applying for full-time positions and going through the long interview process, that was something that made me happy, that I didn't have to stop doing hands-on work." Mendoza-Seale started her academic journey at the Rochester Institute of Technology with a bachelor's degree in biomedical engineering. During her undergraduate and graduate studies, she gained practical experience through co-ops and internships at Johnson & Johnson, Renal Research Institute, and the FDA. Looking back, she considers her time at Binghamton as "fruitful, but difficult." Her research focused on developing a calcific aortic valve disease model under Professor Gretchen Mahler, interim chair for the Department of Biomedical Engineering, to understand how the condition develops over time. Mendoza-Seale carried out her work through the University's Clifford D. Clark Fellowship and a pre-doctoral fellowship with the American Heart Association. However, the transition from academia to technical consulting required a shift in thinking. In grad school, she could set her own research schedule. As a consultant, the key is being efficient while providing great service to clients. "It was a little bit of a challenge at first to switch the mindset from defining your own timeline and goals to being on the client's deadlines and understanding the business model of it all," Mendoza-Seale says. She also highlights the importance of soft skills. Her job isn't just about knowing the most about something - it's being able to communicate ideas clearly and concisely. At Exponent, she uses her technical background alongside the communication skills picked up from her time at Watson. "I was fortunate enough to attend many, many conferences while I was there," Mendoza-Seale says. "And what I loved is that I not only attended academic-driven conferences but also science communication and minority conferences where the focus wasn't just biomedical engineering - it was many other disciplines. It encouraged me to explain my research in a way that was easy for other audiences to understand." As a word of advice to students, she emphasizes communication as a vital part of pursuing a STEM career. "It was immensely helpful for me as a person and as an engineer in my field to be able to explain my work to different audiences," she says. "Unfortunately, financial hurdles are a hindrance, but I always encourage students to try and attend as many conferences in their field, or even outside their field, to expand their network and to be able to communicate their work effectively."