Consulting industry remains challenged in Q3 – but more firms are growing and signs point to recovery

The latest quarter shows the first indications that the consulting industry may be starting to leave its most difficult period behind. A new summary from Cinode reveals that more than half of the listed consulting firms increased their headcount during the quarter – something that has not happened in the past two years.

“After several years of consecutive declines, we are now seeing for the first time that the majority of firms are actually growing within a single quarter. It’s a clear turning point and a strong signal that the market may have reached bottom,” says Mattias Loxi, Co-founder of Cinode.

More than half of the firms also reported positive revenue growth compared to the same quarter last year – something not seen since Q3 2024. The median growth rate reached +0.9 percent, while the average growth remains slightly negative at –1.6 percent. Differences between sectors are significant: infrastructure, energy, and defense continue to show strong momentum, while firms focused on automotive, real estate, and the public sector report a more subdued development. The strongest growth this quarter came from Combitech, Exsitec, and Norconsult.

Turning point in headcount

After two years of continuous staff reductions, more than half of consulting firms now have a higher number of employees at the end of the quarter compared to the beginning. M&A activity has also picked up. Gofore and Addnode reported the largest increases in staff numbers, primarily driven by acquisitions.

However, several challenges remain. On an annual basis, a majority of firms still have fewer employees than at the start of the year. Growth in both headcount and revenue remains modest for many, indicating that the recovery is still fragile.

“We’re seeing greater optimism in company reports, with signs of more stable utilization and growing demand. Among our own customers, there’s also a stronger sense of confidence. One of the most positive signals is that headcount is starting to rise again in many firms, and M&A activity is gaining momentum. Hopefully, we’ll see even clearer signs of improvement in the coming quarters,” Loxi continues.

Profitability remains at similar levels

Profitability remains roughly in line with the previous year. About half of the firms improved their margins, while the other half saw declines. The average EBIT margin ended at 4.4 percent (4.5), and the median at 5.1 percent (5.1). Tietoevry, Softronic, and Bouvet reported the strongest margins in the quarter.

📊 For more information and detailed data, see Cinode’s Infogram report summarizing Q3 for listed consulting firms.