Medpace Raises 2026 Outlook After Third-Quarter Growth Slowdown

The Tip Desk · October 26, 2026 · 2 min read

The company now forecasts 2026 revenue of $2.835 billion to $2.855 billion after third-quarter sales of $716.0 million rose 8.5%.

Medpace Holdings, Inc. (MEDP), a global clinical contract research organization, raised its 2026 revenue outlook after third-quarter sales growth slowed to 8.5% from 17.2% in the second quarter.

The company now forecasts full-year 2026 revenue of $2.835 billion to $2.855 billion, or 12.0% to 12.8% growth over 2025 revenue of $2.530 billion, from a prior range of $2.755 billion to $2.855 billion. GAAP net income for the year is forecast at $514.0 million to $524.0 million, and EBITDA at $638.0 million to $652.0 million. Diluted earnings are forecast at $17.97 to $18.32 a share.

Revenue for the three months ended September 30, 2026 was $716.0 million, compared with $659.9 million a year earlier. On a constant-currency basis, revenue increased 8.6%. Backlog conversion was 23.8%.

Net new business awards were $873.4 million, up 10.6% from $789.6 million a year earlier, after 28.2% growth in the second quarter. Backlog as of September 30, 2026 was $3,167.2 million, up 5.6% from $3,000.6 million a year earlier.

GAAP net income was $137.5 million, or $4.84 a share, versus $111.1 million, or $3.86 a share, a year earlier. Net income margin was 19.2%, compared with 16.8%. EBITDA increased 16.0% to $172.1 million, or 24.0% of revenue, from $148.4 million, or 22.5% of revenue.

Total direct costs were $492.1 million, compared with $463.0 million a year earlier. Selling, general and administrative expenses were $51.8 million.

Cash and cash equivalents were $705.3 million at September 30, 2026. Operating cash flow in the third quarter was $216.6 million. There were no share repurchases in the quarter, after 705,616 shares were bought for $294.7 million in the second quarter.

Effective October 20, 2026, the board terminated the existing repurchase authorization, which had $527.0 million remaining and was set to expire December 31, 2026, and approved a new authorization of up to $1.0 billion through December 31, 2028. Repurchases may be made in open-market purchases, privately negotiated transactions, or Rule 10b5-1 plans, funded from cash on hand. The authorization does not obligate the company to buy a minimum amount of stock.

Guidance assumes a 2026 tax rate of 19.0% to 19.5%, interest income of $22.9 million, foreign-exchange rates as of September 30, 2026, and 28.6 million diluted weighted-average shares. It does not include the potential impact of share repurchases after September 30.

Medpace employs approximately 6,600 people across 46 countries as of September 30, 2026.