ICON: No Scrooge Here, ICLR Shares Their Toys with All

Research evidence excerpt

ICON: No Scrooge Here, ICLR Shares Their Toys with All

Equity Research

U.S. Life Science & Diagnostic Tools

24 June 2026

ICON

No Scrooge Here, ICLR Shares

Their Toys with All

1Q came in line with mgmt's messaging on last month's 4Q ICLR EQUAL WEIGHT

call and 2Q demand remains consistent with those levels. Unchanged

U.S. Life Science &

With a de-risked guide, consistent bookings strength, and a Diagnostic Tools POSITIVE

Unchanged

decent jump-off in 2H, we see a pretty clear path to +MSD Price Target USD 175.00

raised 9% from USD 160.00growth for FY'27. The biggest bear argument remains on...

Price (23-Jun-26) USD 142.67

Potential Upside/Downside +22.7%...margins, to which 1Q results did not alleviate any of the overarching concerns. We expect this will

Source: Bloomberg, Barclays Research

continue to be the key focus into the 2Q print next month and through the remainder of FY'26.

Despite margin concerns, most investors have turned positive given the strong bookings and top-

Market Cap (USD mn) 10923line results.

Shares Outstanding (mn) 76.57

The overall demand environment continues to improve across customer bases, as highlighted Free Float (%) 99.46

by mgmt’s commentary around 2Q remaining broadly similar with 1Q’s strong results (implying 52 Wk Avg Daily Volume (mn) 1.3

~1.3x B2B for 2Q). That said, one point we believe is worth clarifying to investors is around Dividend Yield (%) N/A

mgmt's B2B expectations for the 2H. When mgmt first issued FY'26 guidance last month, 1Q had Return on Equity TTM (%) 5.24

already closed and guidance conservatively assumed that 2Q-4Q B2B would come in ~1.0x. Current BVPS (USD) 120.07

Clearly, ICLR came in well above that assumption in 1Q at 1.42x and was closer to most Source: Bloomberg

buyside expectations based on our conversations.