Icon (ICLR) AI Stock Analysis

• Market Cap: $13.72B
• Dividend Yield: N/A
• Average Volume (3M): 985.61K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 1.00
• Revenue Growth: -2.46%
• EPS Growth: -17.89%
• Country: US
• Employees: 41,250
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 3.31
• Shares Outstanding: 76,359,930
• 10 Day Avg. Volume: 1,032,472
• 30 Day Avg. Volume: 985,610
• PEG Ratio: 0.76
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 15.46
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 7.71
• Enterprise Value/Ebitda: 14.22
• 1Y Price Target: $202.09
• Price Target Upside: 7.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 13.08
• Revenue Forecast (FY): $8.07B

• Rating: 68 Neutral
• Price Target: $200.00 ▲(6.51% Upside)

Icon's strong financial performance and strategic investments are offset by declining margins and cash flow challenges. Technical indicators suggest caution, while valuation and earnings call analysis provide a balanced view. The overall outlook is cautiously optimistic, with potential risks from market pressures.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments and growth.

Strategic Investments in Technology

Investments in technology improve operational efficiency and competitiveness, positioning ICON for long-term success in clinical trials.

Leadership Transition

The leadership transition to an experienced COO ensures continuity and strategic focus, potentially driving future growth and innovation.

Negative Factors

Declining Profit Margins

Declining profit margins can pressure profitability, requiring improved cost management to maintain financial health.

Elevated Cancellations

High cancellation rates can disrupt revenue streams and impact long-term growth, necessitating strategic adjustments.

Pricing Pressure

Pricing pressure can erode margins and profitability, challenging ICON to differentiate its services and maintain competitive pricing.

Icon Business Overview & Revenue Model

Company Description

ICON Public Limited Company, a clinical research organization, provides outsourced development and commercialization services in Ireland, rest of Europe, the United States, and internationally. The company specializes in the strategic development, management, and analysis of programs that support various stages of the clinical development process from compound selection to Phase I-IV clinical studies. It offers clinical development services, including early development, patient recruitment and retention, strategy and analytics, late phase research, data and technology solution, and consulting and analytics services. The company's clinical development services also comprise medical imaging, clinical research and laboratory services, project management, site monitoring and management services, data management, biostatistics and programming, medical writing and publishing, medical affair, endpoint adjudication/data monitoring committees, pharmacovigilance, interactive response technologies, clinical supplies management, strategic regulatory, medical communication, and consulting and advisory services. It serves pharmaceutical, biotechnology, and medical device industries, as well as government and public health organizations. The company was incorporated in 1990 and is headquartered in Dublin, Ireland.

How the Company Makes Money

ICON generates revenue primarily through its clinical research services, which include designing, conducting, and managing clinical trials for pharmaceutical and biotech companies. The company charges clients on a project basis or through fee-for-service models for its services. Key revenue streams include fees from trial management, data analysis and reporting, consulting services, and laboratory services. ICON also benefits from long-term partnerships with major pharmaceutical firms, which provide a steady stream of contracts and recurring revenues. Additionally, the company's focus on technological advancements and efficient trial methodologies enhances its value proposition, helping to attract new clients and retain existing ones.

Icon Financial Statement Overview

Summary

Icon shows strong revenue growth and a solid balance sheet with low leverage. However, declining profit margins and cash flow challenges pose risks. The company needs to improve operational efficiencies and cash flow management to sustain growth.

Income Statement

Icon has demonstrated consistent revenue growth, with a notable 15.8% increase in TTM. However, margins have slightly declined, with the gross profit margin decreasing from 29.4% in 2024 to 26.9% in TTM. The net profit margin also saw a reduction from 9.6% to 7.4% in TTM. Despite these declines, the company maintains a healthy EBIT and EBITDA margin, indicating operational efficiency.

Balance Sheet

The company's balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.07 in TTM, significantly improved from 0.38 in 2024. Return on equity has decreased slightly to 6.3% in TTM, reflecting a moderate return on shareholders' investments. The equity ratio remains robust, indicating financial stability.

Cash Flow

Icon's cash flow statement reveals a decline in free cash flow growth, with a significant drop of 74.3% in TTM. The operating cash flow to net income ratio is stable at 0.37, suggesting adequate cash generation relative to net income. However, the free cash flow to net income ratio has slightly decreased, indicating potential challenges in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.10B	8.28B	8.12B	7.74B	5.48B	2.80B
Gross Profit	2.18B	2.44B	2.40B	2.21B	1.51B	808.03M
EBITDA	1.18B	1.56B	1.52B	1.41B	739.43M	488.83M
Net Income	599.48M	791.47M	612.34M	505.30M	153.19M	327.81M
Balance Sheet
Total Assets	16.51B	16.88B	16.99B	17.19B	17.39B	3.44B
Cash, Cash Equivalents and Short-Term Investments	468.89M	538.78M	380.06M	290.48M	753.92M	842.03M
Total Debt	3.57B	3.60B	3.94B	4.83B	5.65B	433.61M
Total Liabilities	7.17B	7.35B	7.75B	8.69B	9.32B	1.59B
Stockholders Equity	9.33B	9.52B	9.24B	8.50B	8.07B	1.85B
Cash Flow
Free Cash Flow	995.80M	1.12B	1.02B	421.15M	735.39M	543.67M
Operating Cash Flow	1.18B	1.29B	1.16B	563.32M	829.14M	594.72M
Investing Cash Flow	-206.53M	-266.79M	-226.65M	-145.87M	-6.02B	-46.58M
Financing Cash Flow	-1.20B	-837.18M	-844.04M	-864.17M	5.11B	-235.02M

Icon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 187.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICLR, the sentiment is Positive. The current price of 187.78 is above the 20-day moving average (MA) of 167.52, above the 50-day MA of 175.14, and above the 200-day MA of 164.15, indicating a bullish trend. The MACD of 2.94 indicates Negative momentum. The RSI at 64.87 is Neutral, neither overbought nor oversold. The STOCH value of 84.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICLR.

Icon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEDP	79 Outperform	$16.44B	40.82	73.70%	―	13.88%	23.92%
DGX	79 Outperform	$20.31B	21.42	13.69%	1.72%	13.74%	14.87%
IQV	77 Outperform	$38.42B	30.98	19.55%	―	3.85%	-4.74%
ICLR	68 Neutral	$13.72B	24.30	6.27%	―	-2.46%	-17.89%
RVTY	67 Neutral	$11.65B	51.37	3.04%	0.29%	3.37%	-18.80%
CRL	56 Neutral	$8.60B	―	-2.32%	―	-0.92%	-118.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Icon Corporate Events

ICON plc to Present at Jefferies London Healthcare Conference

On November 12, 2025, ICON plc announced that its CEO, Barry Balfe, and CFO, Nigel Clerkin, will present at the Jefferies London Healthcare Conference on November 19, 2025. This participation underscores ICON’s active engagement in the healthcare industry and offers an opportunity to showcase its leadership in clinical research. The event is expected to enhance ICON’s visibility and strengthen its position in the market, potentially impacting stakeholders positively.

ICON Announces CEO Transition and Updates on Share Repurchase and Vaccine Study

ICON plc announced a leadership transition with Dr. Steve Cutler retiring as CEO on October 1, 2025, succeeded by COO Barry Balfe, who also joined the Board of Directors. The company also reported on its share repurchase program, with $750 million remaining for future buybacks as of October 23, 2025. Additionally, a large-scale COVID vaccine study faced delays and a stop work order, impacting operations but not altering financial guidance for 2025. These developments reflect ICON’s strategic adjustments in leadership and financial operations, with potential implications for stakeholders and market positioning.

ICON plc Reports Third Quarter 2025 Financial Results

On October 22, 2025, ICON plc reported its financial results for the third quarter of 2025, highlighting a revenue of $2,042.8 million, a 1.3% increase from the previous quarter. Despite a non-cash goodwill impairment charge of $165.3 million, the company achieved net business wins of $2,086 million, reflecting a net book to bill ratio of 1.02. The adjusted EBITDA for the quarter was $396.7 million, and the company repurchased $250 million worth of stock. ICON adjusted its full-year 2025 financial guidance, reflecting ongoing market challenges and increased pass-through revenues, with a revised revenue range of $8,050 – $8,100 million.

ICON plc Announces Third Quarter 2025 Earnings Call

On September 24, 2025, ICON plc announced it will release its third-quarter 2025 financial results on October 22, 2025, and will host a conference call and webcast on October 23, 2025, to discuss its financial performance. This announcement is significant as it provides stakeholders with insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

ICON plc Reaffirms 2025 Financial Guidance Amid CEO Transition

On September 4, 2025, ICON plc confirmed that there would be no changes to its financial guidance for the full year 2025, following the announcement of a CEO transition. This confirmation reassures stakeholders about the company’s stability and continuity in its financial outlook despite the leadership change.

ICON Announces CEO Transition Effective October 1, 2025

On September 4, 2025, ICON plc announced a leadership transition with Dr. Steve Cutler retiring as CEO, effective October 1, 2025. Barry Balfe, the current Chief Operating Officer, will succeed him and join the Board. This transition follows a comprehensive succession planning process, with Balfe’s extensive experience in the CRO industry positioning him to lead ICON into future growth. Dr. Cutler will remain on the Board as a non-executive director to ensure a smooth transition, and he expressed confidence in Balfe’s ability to drive ICON’s strategic focus on innovation and efficiency in clinical development.

ICON plc Announces Participation in September 2025 Investor Conferences

On September 2, 2025, ICON plc announced its participation in upcoming investor conferences, with COO Barry Balfe presenting at the Baird 2025 Global Healthcare Conference and CEO Dr. Steve Cutler participating at the Deutsche Bank 2025 Healthcare Summit. These engagements are part of ICON’s efforts to maintain its strong industry positioning and communicate its strategic direction to stakeholders, reflecting its commitment to transparency and engagement with the investment community.