Icon (ICLR) AI Stock Analysis

• Market Cap: $13.53B
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.96
• Revenue Growth: -2.91%
• EPS Growth: 12.92%
• Country: US
• Employees: 41,250
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 3.26
• Shares Outstanding: 77,772,130
• 10 Day Avg. Volume: 1,249,594
• 30 Day Avg. Volume: 1,072,736
• PEG Ratio: 0.76
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 15.46
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 6.37
• Enterprise Value/Ebitda: 10.73
• 1Y Price Target: $210.23
• Price Target Upside: 23.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 71 Outperform
• Price Target: $189.00 ▲(10.93% Upside)

Icon's overall stock score reflects solid financial performance and a balanced earnings call sentiment. The company's strong profitability and stable balance sheet are significant strengths. Technical indicators suggest a neutral market position, while valuation metrics indicate reasonable pricing. Despite challenges from elevated cancellations and revenue declines, strategic growth initiatives and cost management provide a positive outlook.

Positive Factors

Strong Business Model

ICON's fee-for-service model and long-term contracts provide stable revenue streams, ensuring consistent cash flow and financial stability.

Operational Efficiency

Improved margins and cost management reflect ICON's ability to maintain operational efficiency, enhancing profitability and competitive positioning.

Leadership Transition

The planned CEO transition ensures leadership continuity, with Balfe's experience expected to drive strategic growth and innovation.

Negative Factors

Revenue Decline

A decline in revenue year-on-year may indicate challenges in maintaining growth, potentially affecting long-term financial performance.

Elevated Cancellations

High cancellation rates, including a major COVID vaccine trial, can disrupt revenue streams and impact future growth prospects.

Decreased Free Cash Flow

Reduced free cash flow growth may limit ICON's ability to invest in new projects, affecting long-term expansion and innovation potential.

Icon Business Overview & Revenue Model

Company Description

ICON Public Limited Company, a clinical research organization, provides outsourced development and commercialization services in Ireland, rest of Europe, the United States, and internationally. The company specializes in the strategic development, management, and analysis of programs that support various stages of the clinical development process from compound selection to Phase I-IV clinical studies. It offers clinical development services, including early development, patient recruitment and retention, strategy and analytics, late phase research, data and technology solution, and consulting and analytics services. The company's clinical development services also comprise medical imaging, clinical research and laboratory services, project management, site monitoring and management services, data management, biostatistics and programming, medical writing and publishing, medical affair, endpoint adjudication/data monitoring committees, pharmacovigilance, interactive response technologies, clinical supplies management, strategic regulatory, medical communication, and consulting and advisory services. It serves pharmaceutical, biotechnology, and medical device industries, as well as government and public health organizations. The company was incorporated in 1990 and is headquartered in Dublin, Ireland.

How the Company Makes Money

ICON generates revenue primarily through service contracts with pharmaceutical and biotechnology companies for clinical trial management and related services. The company operates on a fee-for-service model, where it charges clients for various clinical development services based on the scope and complexity of the projects. Key revenue streams include clinical trial management, data management, and regulatory affairs services. Additionally, ICON has established significant partnerships with pharmaceutical firms and collaborates with academic institutions, which contribute to its earnings by providing access to a broader client base and enhancing its service offerings. The company's ability to secure long-term contracts and maintain repeat business from existing clients also plays a crucial role in stabilizing its revenue flow.

Icon Financial Statement Overview

Summary

Icon demonstrates solid financial health with strong profitability and a stable balance sheet. While there are concerns about recent revenue and free cash flow growth, the company maintains efficient operations and a robust capital structure, positioning it well for future challenges.

Income Statement

Icon's income statement shows a strong EBIT and EBITDA margin, indicating efficient operations. However, the recent TTM data reveals a slight decline in revenue growth rate, which could be a concern if it continues. The net profit margin remains healthy, suggesting profitability is maintained despite revenue fluctuations.

Balance Sheet

The balance sheet reflects a solid financial position with a decreasing debt-to-equity ratio over recent years, indicating improved leverage management. Return on equity is stable, showing consistent returns to shareholders. The equity ratio is strong, highlighting a robust capital structure.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth in the TTM period, which could impact future investments. However, the operating cash flow to net income ratio remains healthy, indicating good cash generation relative to earnings. The free cash flow to net income ratio is strong, suggesting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.09B	8.28B	8.12B	7.74B	5.48B	2.80B
Gross Profit	2.31B	2.44B	2.40B	2.21B	1.51B	808.03M
EBITDA	1.37B	1.56B	1.52B	1.41B	739.43M	488.83M
Net Income	794.25M	791.47M	612.34M	505.30M	153.19M	327.81M
Balance Sheet
Total Assets	16.60B	16.88B	16.99B	17.19B	17.39B	3.44B
Cash, Cash Equivalents and Short-Term Investments	390.40M	538.78M	380.06M	290.48M	753.92M	842.03M
Total Debt	3.55B	3.60B	3.94B	4.83B	5.65B	433.61M
Total Liabilities	7.05B	7.35B	7.75B	8.69B	9.32B	1.59B
Stockholders Equity	9.56B	9.52B	9.24B	8.50B	8.07B	1.85B
Cash Flow
Free Cash Flow	1.00B	1.12B	1.02B	421.15M	735.39M	543.67M
Operating Cash Flow	1.17B	1.29B	1.16B	563.32M	829.14M	594.72M
Investing Cash Flow	-271.63M	-266.79M	-226.65M	-145.87M	-6.02B	-46.58M
Financing Cash Flow	-1.03B	-837.18M	-844.04M	-864.17M	5.11B	-235.02M

Icon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 170.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICLR, the sentiment is Negative. The current price of 170.38 is below the 20-day moving average (MA) of 174.18, below the 50-day MA of 170.54, and below the 200-day MA of 171.53, indicating a bearish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 47.42 is Neutral, neither overbought nor oversold. The STOCH value of 36.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ICLR.

Icon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEDP	80 Outperform	13.99B	36.90	242.70%	―	9.94%	25.30%
IQV	79 Outperform	31.93B	27.01	21.41%	―	3.53%	-10.72%
ICLR	71 Outperform	$13.53B	17.88	8.30%	―	-2.91%	12.92%
DGX	70 Neutral	20.65B	22.08	13.13%	1.66%	12.58%	13.00%
RVTY	61 Neutral	10.01B	36.60	3.78%	0.33%	3.33%	32.86%
CRL	51 Neutral	7.57B	-113.42	-2.06%	―	-1.21%	-115.44%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Icon Corporate Events

ICON plc Reaffirms 2025 Financial Guidance Amid CEO Transition

On September 4, 2025, ICON plc confirmed that there would be no changes to its financial guidance for the full year 2025, following the announcement of a CEO transition. This confirmation reassures stakeholders about the company’s stability and continuity in its financial outlook despite the leadership change.

ICON Announces CEO Transition Effective October 1, 2025

On September 4, 2025, ICON plc announced a leadership transition with Dr. Steve Cutler retiring as CEO, effective October 1, 2025. Barry Balfe, the current Chief Operating Officer, will succeed him and join the Board. This transition follows a comprehensive succession planning process, with Balfe’s extensive experience in the CRO industry positioning him to lead ICON into future growth. Dr. Cutler will remain on the Board as a non-executive director to ensure a smooth transition, and he expressed confidence in Balfe’s ability to drive ICON’s strategic focus on innovation and efficiency in clinical development.

ICON plc Announces Participation in September 2025 Investor Conferences

On September 2, 2025, ICON plc announced its participation in upcoming investor conferences, with COO Barry Balfe presenting at the Baird 2025 Global Healthcare Conference and CEO Dr. Steve Cutler participating at the Deutsche Bank 2025 Healthcare Summit. These engagements are part of ICON’s efforts to maintain its strong industry positioning and communicate its strategic direction to stakeholders, reflecting its commitment to transparency and engagement with the investment community.

ICON plc Releases Interim Financial Statements for 2025

On August 26, 2025, ICON plc released its unaudited interim financial statements for the period from January 1, 2025, to August 7, 2025. The release of these financial statements provides stakeholders with insights into the company’s financial performance and operational efficiency during this period, which is crucial for assessing its market positioning and strategic direction.

ICON plc Halts COVID Vaccine Study Following BARDA Notice

On August 12, 2025, ICON plc announced that a large-scale next-generation COVID vaccine study, which had been actively enrolling participants, received a stop work notice from BARDA, leading to a halt in new subject screening and dosing. Despite this setback, which will affect revenue in the second half of 2025, ICON maintains its full-year financial guidance, reflecting ongoing discussions with BARDA and continued follow-up with already enrolled participants.

ICON plc Expands Share Repurchase Program and Resumes COVID Vaccine Study

On July 22, 2025, ICON plc’s Board of Directors authorized a new share repurchase program allowing the company to buy back up to $500 million of its outstanding ordinary shares, bringing the total authorization to $1 billion. This move follows previous repurchases in March and June 2025, totaling $500 million. Additionally, ICON’s large-scale next-generation COVID vaccine study, initially delayed, has resumed, indicating progress in its clinical research endeavors. The company is also assessing the impact of recent U.S. tariff changes and the Budget Reconciliation Bill signed on July 4, 2025, though no significant impact on operations is expected.

ICON plc Reports Strong Q2 2025 Financial Results and Updates Guidance

On July 23, 2025, ICON plc reported its financial results for the second quarter ending June 30, 2025. The company achieved gross business wins of $2,966 million, with net business wins of $2,057 million, and reported a revenue of $2,017.4 million, marking a slight increase from the previous quarter. Despite a decrease in revenue compared to the same period in 2024, ICON saw a significant year-over-year increase in net income by 30.7%, reaching $183.0 million. The company also repurchased $250 million worth of stock and expanded its share repurchase program by $500 million. ICON updated its full-year 2025 financial guidance, expecting revenue between $7,850 and $8,150 million and adjusted diluted earnings per share between $13.00 and $14.00, reflecting strong cost management and increased pass-through revenue expectations.

ICON plc Announces Successful AGM Resolutions

On July 23, 2025, ICON plc announced the successful passing of all resolutions at its Annual General Meeting held on July 22, 2025. The resolutions included the re-election of board members, review of company affairs, and authorization of share allotments and purchases. This outcome reflects shareholder confidence in ICON’s strategic direction and governance, potentially strengthening its position in the clinical research industry.

ICON plc Schedules Q2 2025 Earnings Call

ICON plc announced on June 23, 2025, that it will release its financial results for the second quarter of 2025 after the market closes on July 23, 2025. A conference call and webcast to discuss these results will be held on July 24, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

ICON plc Reports Strong Interim Financial Results for Early 2025

On June 18, 2025, ICON plc released its unaudited interim financial statements for the period from January 1 to June 5, 2025. The company reported a profit of $477,999,000, showing an increase from the previous year’s profit of $425,295,000. The total comprehensive income for the period was $478,997,000, reflecting a positive currency translation difference. This financial performance underscores ICON’s strong operational capabilities and its strategic positioning in the clinical research industry, potentially benefiting stakeholders by reinforcing the company’s market strength and financial stability.