Cra International, Inc. (CRAI) · Nov 5, 2026 · Earnings
Beat — Diluted EPS $2.20 vs ~$2.07 consensus; revenue $214.9M vs ~$199M consensus
CRA International’s third-quarter earnings beat expectations, revenue surged 15.6%, and full-year revenue guidance rose again, alongside a 17.5% dividend increase.
CRA International is a global consulting firm spanning litigation, regulatory, financial, and management work, entering this quarter with strong first-half growth and already-raised fiscal 2026 revenue guidance. The quarter cleared a fairly low published bar by a wide margin. Revenue reached $214.9 million, up 15.6% year over year, versus published expectations around $199 million, while diluted GAAP EPS was $2.20 versus roughly $2.07 consensus.
| Metric | Q3 2026 | Q3 2025 | Consensus / prior guide |
|---|---|---|---|
| Revenue (Financial Statements) | $214.9M (+15.6%) | $185.9M | ~$199M consensus |
| Diluted GAAP EPS (Financial Statements) | $2.20 (+27.2%) | $1.73 | ~$2.07 consensus |
| Non-GAAP EBITDA (Reconciliation) | $27.1M (+11.2%) | $24.4M | — |
| Non-GAAP EBITDA margin (Reconciliation) | 12.6% | 13.1% | 12.0%-13.0% FY guide |
| FY2026 revenue guidance (Management Guidance) | $830M-$840M | — | $805M-$820M prior |
The more important change is the second revenue-guidance raise. CRA moved its constant-currency fiscal 2026 revenue range from $805 million-$820 million to $830 million-$840 million, a meaningful increase after the range was already raised in the second quarter. The demand is broad rather than dependent on one practice: seven practices grew, representing approximately 95% of quarterly revenue, with particularly strong performance in Forensic Services, Life Sciences, and Risk, Investigations & Analytics. 〔0〕 〔1〕
Profit growth is solid but less clean than the headline revenue growth. GAAP net income rose 21.2%, helped partly by the prior-year comparison, which included restructuring benefits; non-GAAP net income rose only 1.5%, and non-GAAP EBITDA margin fell to 12.6% from 13.1%. That reflects the company’s ongoing investment in talent and higher forgivable-loan amortization, so the revenue acceleration is not yet translating into equivalent adjusted-profit expansion. The filing excerpt says the margin range was narrowed but does not include the new numerical range, so the size of that change cannot be assessed precisely.
Capital returns improved, while the balance sheet and cash conversion deserve more scrutiny. CRA raised its quarterly dividend 17.5% to $0.67, the tenth consecutive annual increase. But year-to-date operating cash flow was negative $43.9 million, accounts receivable and unbilled services rose to $289.6 million, and debt increased materially from year-end, including a $72.9 million term loan and $75 million drawn on the revolving line. 〔2〕
Bottom line: This was a genuine execution beat and another revenue-guidance raise, strengthening CRA’s growth story beyond what the market had already expected. The main offset is that adjusted margins and cash conversion lag the top-line momentum, keeping this a strong advance rather than a complete rewrite of the business story.
Q4 2026 earnings report, early 2027
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