Strong Five-Year Earnings and Margin Gains Might Change The Case For Investing In Huron Consulting Group (HURN)

• Huron Consulting Group recently reported that over the past five years, its sales grew at a 10.6% compound annual rate and adjusted operating margin improved by 7.5 percentage points.
• The company’s earnings per share rose at a very large 21.5% compound annual rate during this period, highlighting robust profitability gains amid expansion.
• Given this sustained increase in earnings per share, we'll now explore how these results influence the broader investment narrative for Huron Consulting Group.

Find companies with promising cash flow potential yet trading below their fair value.

Huron Consulting Group Investment Narrative Recap

For an investor to be a Huron Consulting Group shareholder, confidence in the company's ability to drive consistent earnings growth through its focus on healthcare and education consulting is essential. The recent report of sustained double-digit compounding in both sales and earnings per share over five years reinforces this thesis; however, this progress does not materially impact the near-term risk that client delays in digital transformation could slow growth or pressure margins in high-value service lines.

Among recent company actions, Huron’s revised full-year 2025 revenue guidance, which was increased following the Q2 2025 results, stands out as especially relevant. The guidance lift aligns with the strong, multi-year earnings expansion but will be scrutinized, as any prolonged client hesitancy around large digital projects could still affect both growth pacing and profit delivery.

Yet, despite the company’s expansion, investors should be aware that if digital transformation projects remain paused, the strain on margins could become a headwind for...

Read the full narrative on Huron Consulting Group (it's free!)

Huron Consulting Group's outlook anticipates $2.0 billion in revenue and $172.9 million in earnings by 2028. This scenario assumes a 9.4% annual revenue growth rate and a $67.8 million increase in earnings from the current $105.1 million.

Uncover how Huron Consulting Group's forecasts yield a $171.50 fair value, a 25% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community includes one retail investor’s fair value estimate for Huron Consulting Group at US$390.67, suggesting it could be trading well below perceived value. Keep in mind, extended delays in digital adoption by clients remain a pressing concern that could impact how results meet expectations, consider exploring a broader range of outlooks.

Explore another fair value estimate on Huron Consulting Group - why the stock might be worth just $390.67!

Build Your Own Huron Consulting Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Huron Consulting Group research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Huron Consulting Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Huron Consulting Group's overall financial health at a glance.

Contemplating Other Strategies?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• We've found 19 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• The latest GPUs need a type of rare earth metal called Neodymium and there are only 27 companies in the world exploring or producing it. Find the list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.