ICON Public Company (ICLR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $2,034 million, up 0.9% year-over-year, with adjusted EBITDA margin at 15.6% and adjusted EPS at $2.50.

• Net business wins totaled $2,880 million, resulting in a 1.42x net book-to-bill ratio and a closing backlog of $22.7 billion.

• Commercial strategy execution continued, supported by strong RFP flow, sustained win rates in biotech and pharma, and notable wins in central labs and mid-size partnerships.

• Strategic partnerships advanced, including collaborations with Microsoft for digital innovation and the Brian Moran Cancer Institute for oncology research.

• Free cash flow for the quarter was $136.2 million; cash and cash equivalents rose to $765.2 million.

Financial highlights

• Revenue for Q1 2026 was $2,034 million, up 0.9% year-over-year, but down 1.9% on a constant currency basis.

• Adjusted EBITDA was $317.7 million (15.6% margin), down 20.2% year-over-year.

• Adjusted net income was $192.9 million, with adjusted EPS of $2.50.

• U.S. GAAP net income was $104.8 million, or $1.36 per diluted share.

• Free cash flow for Q1 2026 was $136.2 million; cash at quarter-end was $765.2 million, with net debt at $2.6 billion.

Outlook and guidance

• Full-year 2026 revenue guidance is $7,850–$8,150 million, with adjusted EPS at $10.00–$11.00.

• Guidance excludes future share repurchases, M&A activity, and certain adjustments.

• Modest sequential margin improvement anticipated through 2026, driven by increased full-service direct fee revenue and cost management.

• Book-to-bill assumption for the remainder of the year is around 1.0x; strong commercial performance could provide tailwinds for 2027.

• Capital expenditure for 2026 expected at ~$200 million.