ICON Plc 4Q25 Recap: Strong Bookings Amidst Improving Demand Backdrop, Though Margin Visibility Remains Key Question Mark; Remain Neutral

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ICON Plc 4Q25 Recap: Strong Bookings Amidst Improving Demand Backdrop, Though Margin Visibility Remains Key Question Mark; Remain Neutral

Casey Woodring AC North America Equity Research

(1-212) 622-9074 28 May 2026 J P M O R G A N

casey.woodring@jpmchase.com

under both methodologies and, over time, management expects cancellations to return to

a normal level, pointing to somewhere <$600M per our follow up.

• Details on the new methodology for backlog and cancellations. ICLR announced that

it is adjusting how it calculates and presents cancellations and backlog as of 10/1/25. The

main changes relate to cancellation policy while gross award recognition and backlog

recognition policies remain unchanged. With regard to the updated cancellation policy,

cancellations now include in-period cancellation notifications from customers either

contracted or not (prior policy recognized cancellations when contract termination or

study close-out agreements were finalized). Additionally, the updated policy now covers

studies that management has designated as being at risk of cancellation (under prior

policy no cancellations were taken for studies on hold or with undefined delay). Finally,

the updated policy now covers contracts considered inactive, which refers to those

without recognized revenues in the past 12 months (prior policy did not include such a

provision) and management noted ICLR may proactively remove awards where it no

longer has evidence they still meet inclusion criteria (start dates pushed beyond 12

months, funding reallocated/uncertain, prolonged delays/sponsor silence), while

continuing to report GAAP backlog/unsatisfied performance obligations separately each

quarter.

• Restatement details. The earnings announcement follows an internal investigation into