Icon (ICLR) AI Stock Analysis

• Market Cap: $14.11B
• Dividend Yield: N/A
• Average Volume (3M): 878.13K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.97
• 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: 1,000,363
• 30 Day Avg. Volume: 878,125
• 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: 1.18
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 7.65
• Enterprise Value/Ebitda: 14.12
• 1Y Price Target: $202.67
• Price Target Upside: 10.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $207.00 ▲(12.94% Upside)

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.

Robust new business awards and backlog

A strong flow of gross business awards and net wins boosts medium-term revenue visibility and utilization. With diversification across oncology, cardiometabolic and FSP, a healthy awards pipeline supports sustained revenue conversion over the next 2–6 months and reduces single-client concentration risk.

Investments in technology and AI

Ongoing deployment of AI-enabled tools and trial automation can sustainably improve trial efficiency, reduce cycle times, and enhance client stickiness. Over time these capabilities can raise productivity, partially offset pricing pressure, and create a defensible service differentiation vs peers.

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.

Sharp drop in free cash flow growth

A 74% fall in FCF growth materially weakens the company's capacity to fund capex, R&D, buybacks, or acquisitions from operations. Even with episodic strong quarterly FCF, persistent FCF volatility increases execution risk and reliance on external financing for strategic moves.

Elevated cancellations and pricing pressure

High cancellations and noted pricing pressure reduce revenue predictability and compress margins over time. Cancellations particularly undermine forward workload and utilization planning, raising the risk of underutilized capacity and making revenue growth more volatile despite a healthy awards pipeline.

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

Strong overall fundamentals supported by consistent revenue growth (TTM +15.8%) and a very low debt-to-equity ratio (0.07). Offsetting this strength are weaker profitability trends (gross and net margin declines) and a sharp drop in free cash flow growth (TTM -74.3%), which increases execution risk.

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: 183.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 183.29 is below the 20-day moving average (MA) of 184.95, above the 50-day MA of 177.26, and above the 200-day MA of 163.93, indicating a neutral trend. The MACD of 1.87 indicates Positive momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 33.67 is Neutral, 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	$17.36B	43.11	73.70%	―	13.88%	23.92%
IQV	73 Outperform	$41.10B	33.13	19.55%	―	3.85%	-4.74%
ICLR	70 Outperform	$14.11B	24.98	6.27%	―	-2.46%	-17.89%
RVTY	69 Neutral	$12.64B	55.77	3.04%	0.29%	3.37%	-18.80%
DGX	69 Neutral	$20.78B	21.92	13.69%	1.80%	13.74%	14.87%
CRL	56 Neutral	$10.65B	-139.16	-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 Sets Timing for Release of Full-Year 2026 Financial Guidance

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 be provided. The update, formally reported to the U.S. Securities and Exchange Commission in a Form 6-K filed on January 7, 2026, gives investors and other stakeholders a clearer timetable for when to expect longer-term financial indications, but does not yet disclose any specific guidance figures.

The most recent analyst rating on (ICLR) stock is a Hold with a $200.00 price target. To see the full list of analyst forecasts on Icon stock, see the ICLR Stock Forecast page.

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.

The most recent analyst rating on (ICLR) stock is a Hold with a $178.00 price target. To see the full list of analyst forecasts on Icon stock, see the ICLR Stock Forecast page.

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.

The most recent analyst rating on (ICLR) stock is a Hold with a $190.00 price target. To see the full list of analyst forecasts on Icon stock, see the ICLR Stock Forecast page.

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.

The most recent analyst rating on (ICLR) stock is a Buy with a $226.00 price target. To see the full list of analyst forecasts on Icon stock, see the ICLR Stock Forecast page.