Fortrea Q3 revenue beats expectations on bookings momentum, guidance raised

Fortrea Holdings

Today 10:42

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: ID:nGNX3pFQn7

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.)