Fortrea Q2 revenue beats expectations, outlook raised

Overview

• US contract research firm's Q2 revenue declined yr/yr but beat analyst expectations

• Adjusted EBITDA for Q2 beat analyst expectations

• Company raised full-year 2026 revenue and adjusted EBITDA guidance

Outlook

• Fortrea raises full-year 2026 revenue guidance to $2,620 mln-$2,690 mln

• Company expects full-year 2026 adjusted EBITDA of $205 mln-$220 mln

• Fortrea says focus remains on commercial execution and margin expansion for sustainable growth

Result Drivers

• COMMERCIAL EXECUTION - Co said results reflect continued progress against its strategy and disciplined execution across the business, per CEO Anshul Thakral

• SUSTAINED DEMAND - Book-to-bill ratio above 1.0x for fourth consecutive qtr, indicating ongoing contract wins, per CEO Anshul Thakral

Company press release: ID:nGNX2mTJLn

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "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 Fortrea Holdings Inc is $18.50, about 10.6% below its July 28 closing price of $20.70

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• July 28 - IQVIA raises annual profit forecast on clinical research demand

• July 27 - UK's Science Group preliminary H1 core revenue falls; expects buyback to exceed £20 mln

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(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.)