Houlihan Lokey drops after Q4 revenue declines and EPS falls year over year
Houlihan Lokey shares are sliding after the company reported fiscal Q4 2026 EPS of $1.47 (adjusted $1.63) on revenue of $636 million, down from $666 million a year ago. Despite record fiscal-year revenue of $2.62 billion and a 16.7% dividend hike to $0.70, investors are reacting to softer quarterly profitability and revenue.
1. What happened
Houlihan Lokey shares fell sharply in Wednesday trading as investors digested the company’s fiscal year and fourth-quarter 2026 results. The firm posted fourth-quarter revenue of $636 million (down from $666 million a year earlier) and diluted EPS of $1.47, with adjusted diluted EPS of $1.63.
2. Key numbers investors are focusing on
While Houlihan Lokey delivered record fiscal-year 2026 revenue of $2.62 billion, the quarter showed weaker year-over-year profitability, with net income attributable to the company at $100 million versus $122 million in the prior-year quarter. Segment detail in the release showed Corporate Finance grew year over year in the quarter, but Financial Restructuring revenue fell versus the year-ago period, contributing to the overall revenue decline.
3. Capital return headline vs. near-term fundamentals
The company also announced a 16.7% increase in its quarterly dividend to $0.70 per share, a shareholder-friendly move that typically supports the stock over time. However, the market’s immediate reaction suggests the quarter’s revenue drop and EPS decline outweighed the dividend raise, especially given heightened sensitivity to advisory fee timing and cyclical deal/restructuring conditions.