Economic consulting firm CRA International (NASDAQ: CRAI) beat Wall Street’s revenue expectations in Q3 2026, with revenue rising 15.6% year on year to $214.9 million. The company’s full-year revenue guidance of $835 million at the midpoint came in 2.5% above analysts’ consensus estimates. Its non-GAAP profit of $2.19 per share was 5.6% above analysts’ consensus estimates.

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“Our year-to-date performance in fiscal 2026 represents the best first three quarters of revenue and non-GAAP EBITDA in CRA’s history. On a constant currency basis relative to fiscal 2025, CRA generated total revenue of $624.0 million and non-GAAP EBITDA of $76.8 million, achieving a margin of 12.3%,” said Maleh. “Given our strong results and healthy sales pipeline, we are increasing our full-year revenue guidance and narrowing our profit margin guidance range. For full-year fiscal 2026, on a constant currency basis relative to fiscal 2025, we expect revenue in the range of $830 million to $840 million and non-GAAP EBITDA margin in the range of 12.2% to 12.8%. This new revenue guidance compares with a prior range of $805 million to $820 million and a prior non-GAAP EBITDA margin range of 12.0% to 13.0%.

Revenue growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $823.7 million in revenue over the past 12 months, CRA is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the positive side, it can grow faster because it has more room to expand.

CRA’s revenue grew at a solid 7.7% compounded annual growth rate over the last five years. This shows it had high demand.

Long-term growth matters most, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. CRA’s annualized revenue growth of 10.7% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

This quarter, CRA reported year-on-year revenue growth of 15.6%, and its $214.9 million in revenue exceeded Wall Street’s consensus estimates by 8%.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, according to S&P, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges.

Adjusted operating margin

CRA’s adjusted operating margin has generally stayed the same over the last 12 months, averaging 10.7% over the last five years. This profitability was higher than that of the broader business services sector, showing it managed its expenses reasonably well.

CRA’s adjusted operating margin might have fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

This quarter, CRA generated an adjusted operating margin of 11.1%, up 1.9 percentage points year on year. This improvement shows it was more efficient.

Earnings per share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

CRA’s solid 9.7% annual EPS growth over the last five years aligns with its revenue performance. This indicates its incremental revenue was profitable.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For CRA, its two-year annual EPS growth of 8.1% was lower than its five-year trend.

In Q3, CRA reported adjusted EPS of $2.19, up from $2.06 in the same quarter last year. This result beat analysts’ consensus estimates by 5.6%. Over the next 12 months, Wall Street expects CRA’s full-year EPS to grow 12.4% from $8.40 to $9.44, according to S&P.

Key takeaways from CRA’s Q3 results

CRA’s sizable revenue beat and full-year revenue guidance above Wall Street’s consensus estimates gave the quarter some important positives. Revenue came in well ahead of analysts’ consensus estimates. Shares remained flat at $194.75 immediately after the release.

The latest quarter is only one piece of the longer-term business quality picture. Quality, when combined with valuation, can help determine whether the stock is a buy. Read the full research report here (it’s free).