Medpace Q2 revenue beats estimates on backlog conversion

Overview

• US clinical research firm's Q2 revenue rose 17% yr/yr, beating analyst expectations

• Q2 net income rose to $121 mln, with net income margin up to 17.2%

• Company repurchased 705,616 shares for $295 mln in Q2

Outlook

• Medpace forecasts 2026 revenue between $2.805 bln and $2.885 bln

• Company expects 2026 GAAP net income of $494 mln to $514 mln

• Medpace projects 2026 diluted EPS of $17.25 to $17.95

Result Drivers

• BACKLOG CONVERSION - Co said Q2 revenue growth was driven by a backlog conversion rate of 24.1%

• NEW BUSINESS AWARDS - Net new business awards rose 28% yr/yr to $796 mln

Company press release: ID:nBw8gfDyha

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the biotechnology medical research peer group is "buy."

• Wall Street's median 12-month price target for Medpace Holdings Inc is $480.00, about 9.7% below its July 21 closing price of $531.67

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

• July 21 - Danaher Q2 revenue, adjusted EPS beats on life sciences segment strength; raises outlook

• July 22 - Lonza lifts margin target, repeats latter half of 2026 to be slower

• July 22 - Repligen beefs up cell therapy business with $1.5 billion deal for BioLife

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)