Fortrea Raises 2026 Revenue Guidance After Contract Review

The Tip Desk · November 1, 2026 · 3 min read

Third-quarter revenue was $691.5 million as the CRO lifted full-year revenue guidance to $2,665 million to $2,690 million.

Fortrea Holdings (FTRE), a global contract research organization, raised the midpoint of its full-year 2026 revenue outlook and narrowed both revenue and adjusted EBITDA ranges after a third quarter in which bookings again exceeded billings.

The company now expects 2026 revenue of $2,665 million to $2,690 million and adjusted EBITDA of $210 million to $218 million, from the prior ranges of $2,620 million to $2,690 million and $205 million to $220 million issued after the second quarter.

Revenue for the three months ended September 30, 2026 was $691.5 million, down from $701.3 million a year earlier. Sequentially, sales rose from $678.2 million in the second quarter.

GAAP results swung to net income of $0.6 million, or $0.01 a share, from a $15.9 million net loss, or $(0.17) a share, a year earlier. Adjusted net income was $27.9 million, or $0.28 a share, versus $11.7 million, or $0.12 a share, a year earlier. Adjusted EBITDA was $58.0 million, compared with $50.7 million a year earlier.

The book-to-bill ratio was 1.12x, up from 1.06x in the second quarter, and trailing-12-month book-to-bill was 1.12x. Chief Executive Anshul Thakral said the company delivered another quarter of progress on its return-to-growth strategy, citing stronger commercial execution and continued operational improvements, and that sustained bookings momentum is building a foundation for growth. He said continued execution against the company’s priorities gives it confidence to raise the midpoints of full-year guidance while narrowing ranges.

During the quarter, Fortrea performed a detailed review of contracts in its backlog and reduced backlog by $558 million to reflect the cumulative impact of estimated scope and study delivery requirements across customer contracts, including inactive trials. The company said the adjustment has no impact on historical financial results, previously issued or current 2026 guidance, or near-term revenue estimates. Backlog, as adjusted, was $7,316 million as of September 30, 2026, versus $7,800 million as of June 30, 2026. The book-to-bill ratio was not impacted by the adjustment.

Cash provided by operations was $60.8 million and free cash flow was $52.5 million in the third quarter, versus $28.9 million of operating cash flow and $19.9 million of free cash flow in the second quarter. Cash and cash equivalents were $220.6 million at September 30, 2026.

For the nine months ended September 30, 2026, revenue was $2,006.2 million, compared with $2,062.9 million in the same period of 2025. Year-to-date GAAP net loss was $(36.2) million, or $(0.38) a share, compared with a net loss of $(953.7) million, or $(10.53) a share, in the year-ago period, which included a $797.9 million non-cash goodwill impairment. Year-to-date adjusted net income was $65.8 million, or $0.66 a share, and adjusted EBITDA was $163.7 million.

Thakral said the company remains focused on translating stronger demand into revenue growth, margin expansion and long-term shareholder value.