Medpace Holdings, Inc. Reports Third Quarter 2026 Results
Medpace Holdings, Inc. (MEDP) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Investor Contact: David Ruhe 283-227-6472 d.ruhe@medpace.com FOR IMMEDIATE RELEASE Media Contact: Michael Maley 283-227-6367 m.maley@medpace.com Medpace Holdings, Inc. Reports Third Quarter 2026 Results • Revenue of $716.0 million in the third quarter of 2026 increas
How this was made
The 30-second read
Why it matters
The earnings beat and guidance issuance provide fresh data for traders to assess valuation and potential price movement.
Market read
The release offers new quantitative information that can affect MEDP's stock price in the short term.
What to watch
Potential headwinds from regulatory changes or competitive pricing pressures are not addressed.
Medpace reported third quarter 2026 revenue of $716.0 million, GAAP net income of $137.5 million, and EBITDA of $172.1 million.
Revenue increased 8.5%, net new business awards increased 10.6%, GAAP net income increased to $137.5 million from $111.1 million, and EBITDA increased 16.0% to $172.1 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, net, three months ended September 30, 2026GAAP | $716M | – | 8.5% |
| Revenue, net, nine months ended September 30, 2026GAAP | $2.13B | – | 16.9% on a reported basis |
| Net new business awards, third quarter of 2026other | $873.4M | – | 10.6% |
| Backlog as of September 30, 2026other | $3.17B | – | 5.6% |
| Backlog conversion rate, third quarter of 2026other | 23.8% | – | – |
| Direct service costs, excluding depreciation and amortization, three months ended September 30, 2026GAAP | $204.9M | – | – |
| Reimbursed out-of-pocket expenses, three months ended September 30, 2026GAAP | $287.3M | – | – |
| Total direct costs, three months ended September 30, 2026GAAP | $492.1M | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $51.8M | – | – |
| Depreciation, three months ended September 30, 2026GAAP | $6.42M | – | – |
| Amortization, three months ended September 30, 2026GAAP | $155K | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $550.5M | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $165.5M | – | – |
| Interest income, net, three months ended September 30, 2026GAAP | $5.35M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $170.9M | – | – |
| Income tax provision, three months ended September 30, 2026GAAP | $33.45M | – | – |
| Net income, three months ended September 30, 2026GAAP | $137.5M | – | – |
| Diluted net income per share, three months ended September 30, 2026GAAP | $4.84 per diluted share | – | – |
| Basic net income per share, three months ended September 30, 2026GAAP | $4.92 per basic share | – | – |
| Net income margin, three months ended September 30, 2026GAAP | 19.2% | – | – |
| EBITDA, three months ended September 30, 2026non-GAAP | $172.1M | – | 16.0% |
| EBITDA margin, three months ended September 30, 2026non-GAAP | 24.0% | – | – |
| Net income, nine months ended September 30, 2026GAAP | $382.7M | – | – |
| Diluted net income per share, nine months ended September 30, 2026GAAP | $13.37 per diluted share | – | – |
| Income from operations, nine months ended September 30, 2026GAAP | $453.9M | – | – |
| EBITDA, nine months ended September 30, 2026non-GAAP | $474.9M | – | 19.5% on a reported basis |
| EBITDA margin, nine months ended September 30, 2026non-GAAP | 22.3% | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $530.4M | – | – |
| Property and equipment expenditures, nine months ended September 30, 2026GAAP | −$50.89M | – | – |
| Repurchases of common stock, nine months ended September 30, 2026GAAP | −$294.8M | – | – |
| Cash and cash equivalents as of September 30, 2026GAAP | $705.3M | – | – |
| Cash flow from operating activities, third quarter of 2026GAAP | $216.6M | – | – |
Full year 2026 outlook
- Revenue$2.835 billion to $2.855 billion
- Tax rate19.0% to 19.5%
- NoteRevenue growth of 12.0% to 12.8% over 2025 revenue of $2.530 billion
- NoteGAAP net income of $514.0 million to $524.0 million
- NoteDiluted earnings per share (GAAP) of $17.97 to $18.32
- NoteEBITDA of $638.0 million to $652.0 million
- NoteInterest income of $22.9 million
- Note28.6 million diluted weighted average shares outstanding
- NoteGuidance does not include the potential impact of share repurchases after September 30, 2026
Capital returns
- There were no share repurchases in the third quarter of 2026.
- As of September 30, 2026, the Company had $527.0 million remaining under its authorized share repurchase program.
- Effective October 20, 2026, the Board terminated the prior authorization, which had $527.0 million remaining.
- Effective October 20, 2026, the Board approved a new authorization to repurchase up to $1.0 billion shares of common stock until December 31, 2028.
- Repurchases under the new authorization will be funded from cash on hand.
What drove it
- Third-quarter revenue increased 8.5% and increased 8.6% on a constant currency basis.
- Net new business awards increased 10.6% to $873.4 million.
- Backlog increased 5.6% to $3,167.2 million.
- Third-quarter EBITDA increased 16.0% and EBITDA margin was 24.0%, compared with 22.5% for the comparable prior-year period.
- Nine-month revenue increased 16.7% on a constant currency basis and nine-month EBITDA increased 20.4% on a constant currency basis.
Concerns
- Total direct costs were $492.1 million in the third quarter of 2026, compared with $463.0 million in the third quarter of 2025.
- Selling, general and administrative expenses were $51.8 million in the third quarter of 2026, compared with $48.1 million in the third quarter of 2025.
- The company identifies risks related to backlog conversion, new business awards, pricing pressure, contract underpricing, customer concentration, international operations, foreign exchange rates, and biopharmaceutical research and development budgets.
What to watch
- Conversion of the $3,167.2 million backlog, including the reported 23.8% third-quarter backlog conversion rate.
- Net new business awards following $873.4 million in third-quarter awards.
- Progress toward full-year revenue guidance of $2.835 billion to $2.855 billion.
- Progress toward full-year EBITDA guidance of $638.0 million to $652.0 million.
- Potential repurchases under the new authorization of up to $1.0 billion shares of common stock through December 31, 2028.
Balance sheet and cash flow
- Cash and cash equivalents were $705.3 million at September 30, 2026.
- Net cash provided by operating activities was $530,396 thousand for the nine months ended September 30, 2026, compared with $520,571 thousand for the comparable prior-year period.
- Property and equipment expenditures were $(50,886) thousand for the nine months ended September 30, 2026, compared with $(26,820) thousand for the comparable prior-year period.
- Cash and cash equivalents increased to $705,315 thousand at September 30, 2026 from $497,049 thousand at December 31, 2025.
- Advanced billings were $961,855 thousand at September 30, 2026, compared with $854,390 thousand at December 31, 2025.
Analysis
Medpace delivered third-quarter revenue of $716.0 million, up 8.5% from $659.9 million in the comparable prior-year period. Revenue increased 8.6% on a constant currency basis. Net new business awards rose 10.6% to $873.4 million, while backlog increased 5.6% to $3,167.2 million as of September 30, 2026. The company reported a backlog conversion rate of 23.8%.
Profitability improved in the quarter. GAAP net income was $137.5 million, or $4.84 per diluted share, versus $111.1 million, or $3.86 per diluted share, in the comparable prior-year period. Net income margin was 19.2%, compared with 16.8%. EBITDA increased 16.0% to $172.1 million and EBITDA margin was 24.0%, compared with 22.5%.
Cost lines also increased year over year. Total direct costs were $492.1 million compared with $463.0 million, and SG&A expenses were $51.8 million compared with $48.1 million. For the nine months ended September 30, 2026, revenue was $2,129.9 million, GAAP net income was $382.7 million, and EBITDA was $474.9 million. Nine-month EBITDA margin was 22.3%, compared with 21.8% for the comparable prior-year period.
Liquidity was supported by $705.3 million of cash and cash equivalents at September 30, 2026, and the company generated $216.6 million in third-quarter cash flow from operating activities. No shares were repurchased during the quarter. The Board terminated its prior authorization with $527.0 million remaining and approved a new authorization to repurchase up to $1.0 billion shares of common stock through December 31, 2028.
For full-year 2026, Medpace forecasts revenue of $2.835 billion to $2.855 billion, GAAP net income of $514.0 million to $524.0 million, diluted GAAP earnings per share of $17.97 to $18.32, and EBITDA of $638.0 million to $652.0 million. The guidance assumes a full-year 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 outstanding.
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- Debt was not reported.
- Dividends were not reported.
- No segment revenue or segment profitability disclosure was provided.
- Prior-period guidance was not provided, so actual results cannot be compared with prior guidance.
- Quarterly operating cash flow comparatives were not reported.
- Prior-quarter comparisons were not reported for the disclosed metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Medpace Holdings, Inc. (NASDAQ: MEDP) filed an 8‑K reporting its third‑quarter 2026 financial results and full‑year guidance.
Ticker impact
Medpace reported Q3 2026 results with revenue up 8.5% YoY and issued 2026 guidance.
likely upward pressure as investors price in stronger earnings and guidance
The company posted higher revenue, higher net income and provided a revenue outlook above prior year, which typically lifts sentiment.
Market effects
Strong CRO earnings may boost confidence in the clinical research services sector.
Positive for US biotech and healthcare service stocks.
Limited to investors tracking healthcare service providers.
Counterpoint
If the guidance is already priced in, the stock may face limited upside.
Key entities
- companyMedpace Holdings, Inc.
Clinical contract research organization reporting Q3 results and 2026 guidance.
