ICON Public Company (ICLR) investor relations material

Executive summary

• Record net business wins reached $3.15B, with 1.56x net book-to-bill; closing backlog was $24.5B, up 4.8% sequentially.

• Revenue was $2,024.8M; adjusted EBITDA margin rose 70 bps sequentially to 16.6%, and adjusted diluted EPS was $2.66.

Financial highlights

• Q3 revenue declined 2.9% YoY, or 2.5% at constant currency; it was $2,024.8M versus $2,063M in Q2 2026 and $2,084M in Q3 2025.

• Adjusted EBITDA was $336.9M, down 13.1% YoY; margin was 16.6%, versus 15.9% in Q2 2026 and 18.6% in Q3 2025.

• GAAP net income was $122.1M and diluted EPS was $1.58; adjusted net income was $205.8M and adjusted diluted EPS was $2.66, versus $3.20 YoY.

• 9M revenue was $6,122.2M, down 0.3% YoY; adjusted EBITDA was $981.9M, down 18.4%. Adjusted diluted EPS was $7.72 versus $9.99 YoY.

• GAAP operating income was $199M, or 10% of revenue; adjusted gross margin was 24.7%, up 90 bps sequentially.

Outlook and guidance

• FY2026 revenue guidance increased to $8,100M–$8,200M from $7,850M–$8,150M, primarily reflecting higher pass-through activity.

• FY2026 adjusted diluted EPS guidance is $10.35–$10.65, narrowed from $10.00–$11.00; it is non-GAAP and unreconciled due to uncertainty in forecasting certain GAAP items.

• FY26 adjusted EBITDA margin is expected at 16.0%–16.5%, partly dependent on Q4 pass-through activity; adjusted effective tax rate is expected near 17%.

• Management described mid-single-digit 2027 revenue growth and higher-single-digit earnings growth as possible, not formal guidance; formal guidance is due with Q4 results.