What Happened?

Shares of scientific consulting firm Exponent (NASDAQ: EXPO) jumped 12.3% in the afternoon session after the company reported fourth-quarter 2025 financial results that beat analyst estimates and provided a positive outlook for the upcoming year. 

The company posted revenue of $147.4 million, representing a 19.1% increase year over year and surpassing Wall Street's expectations. Its earnings of $0.49 per share also slightly beat the consensus estimate of $0.47. The key driver for the stock's move appeared to be the company's encouraging forecast for 2026, which anticipates net revenue growth in the high single digits along with expanded margins. This positive guidance suggests management's confidence in future performance. Adding to the news, Exponent's Board of Directors declared a quarterly cash dividend of $0.31 per share.

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What Is The Market Telling Us

Exponent’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for Exponent and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 11 days ago when the stock gained 2.3% on the news that JPMorgan initiated coverage on the company with an 'Overweight' rating and a $100 price target. 

The investment bank viewed Exponent as a leader in science and engineering consulting, positioning the company for a strong rebound. JPMorgan's price target represented approximately 35% upside potential from the stock's price at the time of the announcement. The bank also projected that Exponent's revenue growth would accelerate to 9.5% in 2026, with margin expansion expected as challenges eased and business utilization improved.

Exponent is up 13.5% since the beginning of the year, but at $79.65 per share, it is still trading 12.5% below its 52-week high of $91.01 from February 2025. Investors who bought $1,000 worth of Exponent’s shares 5 years ago would now be looking at an investment worth $869.87.

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