| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 37 | 22.8x | 17.8x | Bottom tier | |
Growth | 60 | 1.7% | 7.1% | Around median | |
Quality | 91 | — | — | Top tier | |
Safety | 75 | — | — | Top tier | |
Capital Return | 62 | 1.95% | 2.12% | Around median | |
Momentum | 14 | -35.0% | 2.9% | Bottom tier | |
Sentiment | 90 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Houlihan Lokey operates as an advisory investment bank that generates revenue through three main businesses: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory. Corporate Finance and Financial Restructuring depend heavily on transaction completions and the associated fee size, while Financial and Valuation Advisory benefits from a large number of fee events and valuation and data services; in Q1 fiscal 2027, this business recorded 1,042 fee events, compared with 957 in the comparable period.
In Q1 fiscal 2027, ended June 30, 2026, the company recorded revenue of $511.0 million, gross profit of $154.0 million, net income of $78.0 million, and GAAP earnings per share of $1.15. These figures equate to a gross profit margin of approximately 30.1% and a net income margin of approximately 15.3%, while management reported adjusted earnings per share of $1.35 and described the quarter's results as disappointing, but viewed them as a temporary disruption rather than a fundamental change in the long-term outlook.
Corporate Finance accounted for $303 million, or approximately 59.3% of Q1 fiscal 2027 revenue, but declined 24% year over year despite the number of closed transactions remaining nearly stable at 127, due to lower average fees and delays in larger transactions. Financial Restructuring generated $119 million with 23 closed transactions, while Financial and Valuation Advisory revenue rose 13% to $89 million, demonstrating the benefit of revenue diversification when middle-market M&A activity slowed.
The analyst consensus is "Buy," with an average price target of $163.6 and a target range between $145 and $187. The average target is approximately 45.0% above the 52-week range low of $112.83, but approximately 22.7% below the high of $211.777, while the highest target remains approximately 11.7% below that high; this divergence reflects a balance between the strong backlog and the 24% decline in Corporate Finance and software disruption in Q1 fiscal 2027.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue totaled $511 million, and net income totaled $78 million, while GAAP earnings per share were $1.15 and adjusted earnings per share were $1.35. The main reason was a 24% decline in Corporate Finance revenue to $303 million due to delays in higher-fee transactions and lower average fees, despite the number of closed transactions remaining nearly stable at 127. Technology activity also declined by approximately 54%, or $53 million, amid a reassessment of software transactions due to artificial intelligence and lower valuations.
Management said on the July 29, 2026 call that the backlog, transaction pipeline, and new mandate activity in Corporate Finance were at record or strong levels, and that the vast majority of deferred transactions were still progressing. Cancellation and suspension rates also did not increase materially, and the proportion of transactions entering the market continued to improve. However, management did not specify when the middle market would return to normal and explained that closings could remain uneven over the near term.
Automated analysis for informational purposes only — not investment advice.
Financial Restructuring generated revenue of $119 million in Q1 fiscal 2027, despite the number of closed transactions declining 34% to 23, because average fees on closed transactions increased. Management expects activity to remain at elevated levels during fiscal 2027, supported by energy, private credit, and software. At the same time, Financial and Valuation Advisory grew 13% to $89 million, with fee events rising 9% to 1,042.
Houlihan Lokey announced the acquisition of Intrepid Financial Partners during Q1 fiscal 2027 and described it as an independent investment bank specializing in the energy sector. The company expects to close the transaction by the end of Q2 fiscal 2027 and add 32 employees to the organization. Management believes the combination of the two organizations has already begun to support momentum in the energy business, alongside the continued strength of the company's acquisition pipeline.
The direct negative impact appeared in Q1 fiscal 2027, when the reassessment of software companies contributed to an approximately 54%, or $53 million, decline in technology activity. Conversely, management believes artificial intelligence can improve business efficiency and expand the market for valuation services, as the use of the technology in some portfolio valuation services reduced the price per valuation while increasing the number and frequency of valuations. The company is also using more advanced data tools and its collaboration with Morningstar to build a joint CLO market benchmark, but management said revenue from this collaboration would be minimal at its current stage.
The average analyst price target is $163.6, with a low target of $145 and a high target of $187, and an overall consensus rating of "Buy." The 52-week range extends from $112.83 to $211.777, and the average target is approximately 22.7% below the top of the range, while the highest target is approximately 11.7% below it. The positive case is based on the strength of the backlog and business diversification, while the cautious case is based on the 24% decline in Corporate Finance and the 54% decline in technology activity in Q1 fiscal 2027.
