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Fortrea Q3 revenue beats expectations on bookings momentum, guidance raised

By Reuters News


Overview

  • US contract research organization's Q3 revenue fell yr/yr but beat analyst expectations

  • Adjusted EBITDA for Q3 beat analyst expectations

  • Company raised midpoints for full-year revenue and adjusted EBITDA guidance


Outlook

  • Fortrea raises midpoint of 2026 revenue guidance to $2.665 bln–$2.690 bln

  • Company lifts midpoint of 2026 adjusted EBITDA forecast to $210 mln–$218 mln

  • Fortrea narrows full-year 2026 guidance ranges for both revenue and adjusted EBITDA


Result Drivers

  • COMMERCIAL EXECUTION - Co said stronger commercial execution contributed to progress on its return-to-growth strategy

  • BOOKINGS MOMENTUM - Co said sustained bookings momentum is building a foundation for growth

  • OPERATIONAL IMPROVEMENTS - Co said continued operational improvements and financial discipline supported results


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$691.50 mln

$669.95 mln (12 Analysts)

Q3 EPS

$0.01

Q3 Net Income

$600,000

Q3 Adjusted EBITDA

Beat

$58 mln

$52.08 mln (11 Analysts)

Q3 Pretax Profit

Miss

-$3.60 mln

$29.85 mln (7 Analysts)

Q3 Operating Income

$15 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "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 $23.00, about 11.1% below its October 28 closing price of $25.88

  • The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 19 three months ago


Reuters Recommended Reads

  • Oct 27 - ICON's Q3 adj EPS and adj EBITDA beat analyst expectations

  • Oct 27 - Healthcare data firm IQVIA Q3 revenue beats on strong bookings

  • Oct 28 - Labcorp Q3 revenue beats on organic growth, operating efficiencies


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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