Fortrea posts lower-than-expected drop in Q1 revenue

Fortrea Holdings

05/05/2026 11:17

Overview

US clinical trials provider reported a smaller than expected drop in Q1 revenue

Adjusted EBITDA beat analyst expectations

Company reaffirmed full-year 2026 guidance

Outlook

Fortrea affirms 2026 full-year revenue guidance of $2,550 mln to $2,650 mln

Company maintains 2026 adjusted EBITDA guidance of $190 mln to $220 mln

Fortrea says commercial traction across biotech and pharma clients supports confidence in outlook

Result Drivers

COMMERCIAL TRACTION - Co said performance was supported by commercial traction across biotech and large pharma clients

STRATEGIC INITIATIVES - Co cited focus on strategic journey back to growth and margin expansion as supporting Q1 results, per CEO Anshul Thakral

TECHNOLOGY INVESTMENT - Launch of Fortrea Intelligent Technology highlighted as part of commitment to outcomes-based innovation

Company press release: ID:nGNX712N4G

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$636.50 mln
$625.40 mln (10 Analysts)
Q1 EPS
-$0.25
Q1 Net Income
-$23.60 mln
Q1 Adjusted EBITDA
Beat
$47 mln
$34.32 mln (10 Analysts)
Q1 Pretax Profit
Miss
-$12.30 mln
$11.33 mln (5 Analysts)
Q1 Operating Income
-$3.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "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 $12.50, about 2% above its May 4 closing price of $12.25

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 21 three months ago

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.)