Icon plc (ICLR)
NASDAQ:ICLR
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Rating:70Outperform
Price Target:
$207.00
▲(72.96% Upside)
Action:UpgradedDate:01/09/26
The score is driven primarily by solid financial strength (low leverage and strong revenue growth) but tempered by declining margins and weak TTM free cash flow growth. Technicals are supportive with price above major moving averages, while the earnings call was balanced—strong awards and cash generation offset by cancellations and pricing pressure. Valuation is reasonable but not distinctly cheap at a ~25.4 P/E.
Positive Factors
Low leverage / strong balance sheet
ICON's very low leverage provides durable financial flexibility: it supports bidding on large, capital-intensive trials, cushions the business through biotech funding cycles, and preserves capacity for strategic investments, M&A or continued share repurchases without stressing liquidity.
Negative Factors
Declining margins
Material margin erosion reflects a structural mix shift toward pass-through revenue and increased pricing pressure. Sustained lower gross and net margins reduce internal reinvestment capacity and long-term return on capital, limiting ability to expand operating leverage or fund new strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
ICON's very low leverage provides durable financial flexibility: it supports bidding on large, capital-intensive trials, cushions the business through biotech funding cycles, and preserves capacity for strategic investments, M&A or continued share repurchases without stressing liquidity.
Read all positive factors
Icon (ICLR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.55B
Dividend YieldN/A
Average Volume (3M)898.16K
Price to Earnings (P/E)1437.4
Beta (1Y)1.10
Revenue Growth-2.46%
EPS Growth-17.89%
CountryUS
Employees41,250
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)7.43
Shares Outstanding76,359,930
10 Day Avg. Volume883,982
30 Day Avg. Volume898,160
Financial Highlights & Ratios
PEG Ratio0.76
Price to Book (P/B)1.82
Price to Sales (P/S)2.09
P/FCF Ratio15.46
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit5.36
Enterprise Value/Ebitda9.89
Forecast
1Y Price Target
$123.91Price Target Upside3.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)11.63
Revenue Forecast (FY)$7.84B
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,...
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-...
Icon Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of ICON plc's performance. While there were strong business awards and strategic investments in technology, the company faced challenges with elevated cancellations and pricing pressures affecting margins. The overall outlook remains cautiously optimistic, with expectations of normalized cancellation levels and continued technological advancements.Positive Updates
Strong Gross Business Awards
Gross business awards totaled $3 billion, up mid-single digits year-over-year, with notable strength in oncology, cardiometabolic disease, and FSP sectors.
Negative Updates
Elevated Cancellations
Net book-to-bill ratio negatively impacted by $900 million in cancellations, with a bias towards studies canceled before enrollment.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Gross Business Awards
Gross business awards totaled $3 billion, up mid-single digits year-over-year, with notable strength in oncology, cardiometabolic disease, and FSP sectors.
Read all positive updates
Company Guidance
During ICON plc's Q3 2025 earnings call, the company provided guidance indicating a challenging but stable market environment. Gross business awards for the quarter were strong, totaling $3 billion, representing a mid-single-digit increase year-over-year, with significant contributions from oncology, cardiometabolic disease, and functional service provider (FSP) sectors. The company's revenue for the quarter was $2.043 billion, marking a 0.6% year-over-year increase and a 1.3% sequential rise from Q2 2025. Despite the positive revenue growth, ICON faced a flat burn rate of 8.2% and a slight decline in adjusted EBITDA margin to 19.4%, down 20 basis points sequentially, due to a higher pass-through revenue mix. The company executed $250 million in share repurchases during the quarter, contributing to a year-to-date total of $750 million. Adjusted earnings per share reached $3.31, up 1.5% from Q2, while free cash flow for the quarter was robust at $334 million. For the full year, ICON adjusted its guidance, forecasting revenue between $8.05 billion and $8.1 billion and adjusted EPS ranging from $13 to $13.20. Looking forward, ICON expects market conditions to persist similarly, with optimism for a return to normalized growth levels in 2026 as cancellations hopefully moderate and new business wins continue to strengthen.Icon Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
65
Positive
| 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
Neutral
119.68
Price Trends
108.49
Positive
145.66
Negative
158.15
Negative
Market Momentum
1.34
Negative
63.37
Neutral
91.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICLR, the sentiment is Neutral. The current price of 119.68 is above the 20-day moving average (MA) of 107.99, above the 50-day MA of 108.49, and below the 200-day MA of 158.15, indicating a neutral trend. The MACD of 1.34 indicates Negative momentum. The RSI at 63.37 is Neutral, neither overbought nor oversold. The STOCH value of 91.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ICLR.
Icon Risk Analysis
Icon disclosed 57 risk factors in its most recent earnings report. Icon reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Icon Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $8.55B | 1,437.41 | 6.32% | ― | -2.46% | -17.89% | |
70 Outperform | $21.20B | 21.39 | 13.88% | 1.80% | 11.03% | 14.34% | |
70 Outperform | $11.91B | 27.57 | 120.89% | ― | 24.19% | 20.19% | |
63 Neutral | $9.67B | 27.94 | 3.24% | 0.29% | 3.67% | -12.98% | |
63 Neutral | $27.31B | 18.64 | 22.28% | ― | 5.84% | 4.62% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $8.50B | -9.06 | -4.40% | ― | -0.85% | -1143.24% |
* Healthcare Sector Average
ICLR
Icon
111.97
-23.13
-17.12%
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Icon Corporate Events
ICON Sets Timing for Release of Full-Year 2026 Financial Guidance
Jan 7, 2026
On January 7, 2025, ICON plc announced that it plans to issue its full-year 2026 financial guidance at the same time it releases its fourth-quarter and full-year 2025 results, clarifying the timing after earlier updates on when such guidance would...
ICON plc to Present at Jefferies London Healthcare Conference
Nov 12, 2025
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 healt...
ICON Announces CEO Transition and Updates on Share Repurchase and Vaccine Study
Oct 23, 2025
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...
ICON plc Reports Third Quarter 2025 Financial Results
Oct 22, 2025
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.