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(NASDAQ:ICLR)
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Rating:71Outperform
Price Target:
$187.00
▲(12.81% Upside)
Action:Upgraded
Date:08/28/26
The score is driven primarily by solid financial performance—especially strong TTM free cash flow and a healthier balance sheet—supported by a constructive technical uptrend. These positives are moderated by a relatively expensive valuation (high P/E) and some historical volatility in margins and profitability.
Positive Factors
Backlog and Bookings
Strong bookings and a $23.4 billion backlog provide multi-period revenue visibility for a fee-based CRO. Sustained demand and new-customer wins can support utilization and future conversion, reducing reliance on a single quarter’s sales.
Negative Factors
Margin Pressure
Gross margin has declined from 2023–2024 levels, operating profitability compressed versus 2024, and 2025 net margin fell sharply. Persistent mix or cost pressure could limit the conversion of strong bookings into durable earnings and cash returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Bookings
Strong bookings and a $23.4 billion backlog provide multi-period revenue visibility for a fee-based CRO. Sustained demand and new-customer wins can support utilization and future conversion, reducing reliance on a single quarter’s sales.
Read all positive factors
Icon (ICLR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.03B
Dividend YieldN/A
Average Volume (3M)834.76K
Price to Earnings (P/E)39.4
Beta (1Y)0.96
Revenue Growth2.08%
EPS Growth-94.18%
CountryUS
Employees40,200
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)4.29
Shares Outstanding77,154,205
10 Day Avg. Volume649,160
30 Day Avg. Volume834,757
Financial Highlights & Ratios
PEG Ratio-0.90
Price to Book (P/B)1.55
Price to Sales (P/S)1.73
P/FCF Ratio16.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$187.92Price Target Upside13.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)10.6
Revenue Forecast (FY)$8.13B
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,...
How the Company Makes Money
ICON makes money primarily by providing fee-based outsourced research and development services to life-sciences customers. Its core revenue stream is clinical development services, where sponsors pay ICON to design, manage, and execute clinical tr...
Icon Earnings Call Summary
Earnings Call Date:Jun 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but stable picture: strong commercial momentum — including robust gross bookings (+22% YoY), hefty net wins (+42% YoY), higher book-to-bill (1.42x) and strategic commercial and digital initiatives — offset by notable margin compression year-over-year, pass-through volatility, and muted revenue growth on a constant currency basis. Management reiterated full-year guidance, highlighted balance sheet improvement and free cash flow generation, and outlined concrete actions and investments to drive margin recovery and long-term growth.Positive Updates
Strong Gross Bookings Growth
Gross bookings were $3.3 billion in Q1, matching Q4 2025 and up 22% year-over-year, indicating robust new business demand.
Negative Updates
Weak YoY Margin and Adjusted Gross Margin Decline
Adjusted gross margin declined to 24.4% in Q1 from 28.4% in Q1 2025, a deterioration of ~400 basis points, reflecting margin pressure versus prior year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Gross Bookings Growth
Gross bookings were $3.3 billion in Q1, matching Q4 2025 and up 22% year-over-year, indicating robust new business demand.
Read all positive updates
Company Guidance
ICON reiterated full‑year 2026 guidance of revenue $7.85–$8.15 billion and adjusted diluted EPS $10.00–$11.00 (implied midpoint EBITDA margin ≈16.5%), and expects modest sequential margin improvement (Q2 EBITDA margin ~16%), with a planning assumption of ~1.0 book‑to‑bill for the balance of the year and pass‑throughs broadly stable at Q1 levels; Q1 results were in line with guidance: revenue $2.0 billion (+0.9% reported, -1.9% cc), adjusted EBITDA $317.7 million (15.6% margin), adjusted net income $192.9 million / adjusted EPS $2.50, U.S. GAAP net income $104.8 million ($1.36), adjusted gross margin 24.4%, adj. SG&A $178.5 million (8.8% of revenue), adj. net interest $44.7 million and effective tax rate 17.2% (FY ≈17%); commercial metrics included Q1 gross bookings $3.3 billion (+22% YoY), cancellations $383 million, net business wins $2.88 billion (+42% YoY) and net book‑to‑bill 1.42x (direct‑fee book‑to‑bill >1.3x); balance sheet and cash: cash $765.2 million, debt $3.4 billion, net debt $2.6 billion (leverage 1.8x net debt / adj. TTM EBITDA), Q1 operating cash flow $167 million, capex $30.8 million, free cash flow $136.2 million; buybacks are excluded from guidance but are planned to resume in Q3.Icon Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
76
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.25B | 8.25B | 8.28B | 8.12B | 7.74B | 5.48B |
| Gross Profit | 1.80B | 2.18B | 2.44B | 2.40B | 2.21B | 1.51B |
| EBITDA | 1.25B | 823.57M | 1.56B | 1.52B | 1.41B | 739.43M |
| Net Income | 328.88M | 229.34M | 791.47M | 612.34M | 505.30M | 153.19M |
Balance Sheet | ||||||
| Total Assets | 16.40B | 16.27B | 16.88B | 16.99B | 17.19B | 17.39B |
| Cash, Cash Equivalents and Short-Term Investments | 928.38M | 647.29M | 538.78M | 380.06M | 290.48M | 753.92M |
| Total Debt | 3.49B | 3.56B | 3.60B | 3.94B | 4.83B | 5.65B |
| Total Liabilities | 7.02B | 7.08B | 7.35B | 7.75B | 8.69B | 9.32B |
| Stockholders Equity | 9.38B | 9.19B | 9.52B | 9.24B | 8.50B | 8.07B |
Cash Flow | ||||||
| Free Cash Flow | 1.35B | 861.99M | 1.12B | 1.02B | 421.15M | 735.39M |
| Operating Cash Flow | 1.62B | 1.04B | 1.29B | 1.16B | 563.32M | 829.14M |
| Investing Cash Flow | -356.79M | -187.53M | -266.79M | -226.65M | -145.87M | -6.02B |
| Financing Cash Flow | -802.93M | -771.26M | -837.18M | -844.04M | -864.17M | 5.11B |
Icon Technical Analysis
Positive
165.76
Price Trends
165.62
Positive
143.96
Positive
147.27
Positive
Market Momentum
1.90
Negative
52.10
Neutral
48.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICLR, the sentiment is Positive. The current price of 165.76 is below the 20-day moving average (MA) of 166.49, above the 50-day MA of 165.62, and above the 200-day MA of 147.27, indicating a bullish trend. The MACD of 1.90 indicates Negative momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 48.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICLR.
Icon Risk Analysis
Icon disclosed 66 risk factors in its most recent earnings report. Icon reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Icon Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $17.14B | 35.60 | 110.15% | ― | 24.67% | 25.88% | |
77 Outperform | $27.39B | 27.59 | 11.57% | 0.97% | 6.41% | 33.31% | |
76 Outperform | $232.26B | 34.03 | 13.35% | 0.32% | 7.23% | 7.47% | |
74 Outperform | $42.70B | 32.17 | 21.95% | ― | 8.22% | 16.68% | |
71 Outperform | $13.03B | 39.37 | 3.54% | ― | 2.08% | -94.18% | |
59 Neutral | $14.21B | -60.97 | -7.72% | ― | -0.74% | -268.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ICLR
Icon
168.93
-6.12
-3.50%
CRL
Charles River Labs
295.10
131.88
80.80%
LH
Labcorp Holdings
335.72
62.60
22.92%
TMO
Thermo Fisher
633.71
145.75
29.87%
IQV
IQVIA Holdings
261.51
72.78
38.56%
MEDP
Medpace Holdings
619.05
146.11
30.89%
Icon Corporate Events
ICON Showcases 2025 ESG and Innovation Gains in Latest ICON Cares Report
Aug 20, 2026
ICON plc, headquartered in Dublin, Ireland, is a global clinical research organisation that delivers consulting, clinical development, commercialisation and post‑marketing services to pharmaceutical, biotechnology, medical device, government...
ICON plc Raises $2.15 Billion in Senior Notes to Refinance Secured Debt
Aug 18, 2026
On August 13, 2026, ICON Investments Six DAC, a wholly owned subsidiary of ICON plc, issued $2.15 billion of senior unsecured notes in three tranches due 2029, 2031 and 2036, all guaranteed by ICON. The notes were placed privately with institution...
ICON Launches Private Senior Notes Offering to Refinance Debt and Simplify Capital Structure
Aug 6, 2026
On August 4, 2026, ICON plc announced that its wholly owned subsidiary, ICON Investments Six Designated Activity Company, planned a private offering of senior notes with registration rights, guaranteed on a senior unsecured basis by ICON. The net ...
ICON Shareholders Approve All Resolutions at July 31 AGM, Bolstering Capital Flexibility
Jul 31, 2026
ICON plc is a world-leading clinical research organization that provides integrated consulting, clinical development, commercialization and post‑marketing solutions to pharmaceutical, biotechnology, medical device, government and public heal...
ICON Restructures Debt and Divests Symphony Ahead of Note Maturities
Jul 30, 2026
On July 15, 2026, ICON drew down a new $500 million Bridge Secured Credit Facility arranged in April and used the proceeds to fully repay its $500 million 2.875% Senior Secured Notes that matured the same day. The bridge loan, which runs to April ...
ICON Posts Solid Q2 2026 Bookings, Reaffirms Full‑Year Guidance Despite Margin Pressure
Jul 29, 2026
ICON reported second‑quarter 2026 results on July 29, showing revenue of $2,063.5 million, up 1.2% year on year and 1.4% versus the first quarter, with adjusted EBITDA of $327.2 million, or 15.9% of revenue. GAAP net income for the quarter w...
ICON Sets Dates for Q2 2026 Earnings Release and Investor Call
Jul 22, 2026
ICON plc, a leading global clinical research organization based in Dublin, announced on July 22, 2026 that it will release financial results for the second quarter of 2026 after markets close on Wednesday, July 29, 2026. The group, listed on NASDA...
ICON plc Sets July 31, 2026 AGM and Seeks Expanded Capital Authorities
Jun 26, 2026
ICON plc, the Irish-headquartered clinical research organization listed on Nasdaq, has filed a June 2026 Form 6-K with the U.S. Securities and Exchange Commission, furnishing shareholders with its consolidated IFRS financial statements, IFRS annua...
ICON Reshapes Board, Refinances Debt and Divests Symphony Health in Q2 2026
Jun 23, 2026
ICON plc, a leading global contract research organization, continues to expand its role as a healthcare intelligence and clinical development partner, leveraging a broad geographic footprint spanning 55 countries and a diversified client base acro...
ICON plc Books Strong Q1 2026 Orders as Earnings Decline but Guidance Reaffirmed
Jun 23, 2026
ICON plc reported its first-quarter 2026 results on June 23, 2026, highlighting its role as a major clinical research provider to global life sciences and public health organizations. The company combines deep operational and medical expertise to ...
ICON Sets Dates for First-Quarter 2026 Earnings Release and Conference Call
Jun 17, 2026
ICON plc announced in Dublin on June 17, 2026 that it will release its financial results for the first quarter of 2026 after the U.S. market closes on Tuesday, June 23, 2026. The company will host a conference call and webcast on Wednesday, June 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.