First Take: ICLR 1Q26

Research evidence excerpt

First Take: ICLR 1Q26

Instead, B2B improved to 1.42x, reflecting strong comm'l momentum. The earnings deck mentions

constructive RFP trends (both pharma & biotech) and sustained FSO win rate, incremental pos

beyond headline bookings number.

P&L In Line With Expectations, FY26 Guidance Maintained. 1Q rev of $2,030M was in line with JEF

& modestly ahead of cons ($1,998M). EBITDA margin of 15.6% was ~flat vs 4Q25 (15.5%), reflecting

prev flagged headwinds (lower direct fee rev, FSP mix, neg operating leverage, & pricing). We

described those in our post-NDR note. Below-the-line items were mostly aligned with expectations,

driving a slight EPS beat ($0.07 vs cons). 2026 guidance unchanged, with mgt reaffirming EPS of

$10–11 and rev of $7,850–$8,150. Based on prev commentary, qtrly rev should remain ~$2B, with a

heavier mix of direct fee rev & higher-margin clinical rev after May Symphony divestiture. Those are

the main drivers of improving EBITDA margin through '26, which is expected to exit 4Q at ~17-17.5%.

Stock Recovery Progressing Better than our Upgrade Scenario. We upgraded slightly below

$100 in February, feeling like compounded penalties for neg '25 bookings trends, accounting

investigation, AI fears, & maybe throw in mgt change concerns had driven the stock to uniquely

cheap levels. We believed investors could make a ST return simply on the completion of the

David Windley, CFA * | Equity Analyst

accounting restatement, and then further gains could come over time with an improving overall +1 (615) 963-8313 | dwindley@jefferies.com

demand environment & ICLR holding serve as that happened. For investors playing catch-up on

Tucker Remmers * | Equity Associate

the story, that note is worth a (re)read for framing.