Jesus in the Eyes of JosephusVermes concludes:
GEZA VERMES
January/February 2010
Joseph son of Matthias, better known as Flavius Josephus — surnamed after his patron, the Roman Emperor Titus Flavius — was the greatest Jewish historian of antiquity. Without his work, much of the contemporaneous history of Israel would be floating in a vacuum. Josephus's vignettes concerning Jesus, John the Baptist and Jesus's brother, James, are the only pieces of outside evidence relating to first-century New Testament figures. The issue of their authenticity is, therefore, of major importance. However, before tackling it, let me say a few words about the author and his reliability as an historian.
[...]
In conclusion, what seems to be Josephus's authentic portrait of Jesus depicts him as a wise teacher and miracle worker, with an enthusiastic following of Jewish disciples who, despite the crucifixion of their master by order of Pontius Pilate in collusion with the Jerusalem high priests, remained faithful to him up to Josephus's days.I agree with his general position (i.e., #3) and with most of his reconstruction.
Let me offer therefore the text that I believe Josephus wrote. The Christian additions, identified in the paragraph that follows the earlier reproduction of the English translation of Antiquities 18: 63-64, are excised and the deletions are indicated by [......]. The dubious authenticity of the phrase "[and many Greeks?]" (see the same paragraph above) is signalled by the question mark. Finally, the word [called] is inserted into the sentence "He was [called] the Christ" on the basis of Josephus's description of James as "the brother of Jesus called the Christ".
About this time there lived Jesus, a wise man...For he was one who performed paradoxical deeds and was the teacher of such people as accept the truth gladly. He won over many Jews [and many Greeks?]. He was [called] the Christ. When Pilate, upon hearing him accused by men of the highest standing among us, had condemned him to be crucified, those who had in the first place come to love him did not give up their affection for him...And the tribe of the Christians, so called after him, has still to this day not disappeared.
A brief summary of a 2003 lecture by Steve Mason on Josephus is here. And my discussion of Josephus on the Essenes is here.