Fortrea Q3 2026 slides: EBITDA rises 14% as revenue falls short

Truist Securities raised its price target on Fortrea (NASDAQ:FTRE) to $29 from $26, maintaining a Buy rating. The stock trades at $23.14 with a $2.23B market cap. Fortrea reported a TTM book-to-bill ratio of 1.12x, below expectations, and expects Q4 adjusted EBITDA of $50M with a 7.5% margin, down from Q3. The company cited fewer working days and investments for the decline, but noted six consecutive quarters of margin upside and improving biotech demand.

Fortrea Holdings (FTRE) reported a $558M backlog adjustment, not impacting near-term revenue. Q4 EBITDA guidance was lowered due to fewer working days and IT investment. Gross margins improved from portfolio mix and efficiencies. CEO Anshul Thakral and CFO Jason Knobloch discussed growth strategies, including acquisitions like Worldwide Clinical Trials, and market recovery trends in biotech and biopharma. The company aims for mid-teens EBITDA margins and sees increasing RFP activity.

Fortrea (FTRE) reported Q3 2026 revenue of $691.5M, adjusted EBITDA of $58M, and a book-to-bill ratio of 1.12x. The company raised full-year guidance and completed an acquisition to expand its clinical pharmacology capacity. Fortrea's strategy focuses on revenue growth and margin expansion through commercial, operational, and financial excellence.

Fortrea (FTRE) reported Q3 net income of $0.6M, up from a loss of $15.9M YoY. Adjusted net income was $27.9M, and adjusted EPS was $0.28. Operating cash flow improved to $60.8M. The company acquired Early Phase Services, expanding its clinical pharmacology network. Fortrea raised its 2026 revenue guidance to $2.665B-$2.690B and adjusted EBITDA to $210M-$218M. Management expects biotech and biopharma demand recovery.

Fortrea Holdings reported Q3 Non-GAAP EPS of $0.28, exceeding estimates by $0.06, with revenue of $691.5M, a 1.4% year-over-year decline but $19.98M above expectations. The company revised its FY2026 revenue outlook to $2.665B–$2.690B and adjusted EBITDA to $210M–$218M, both above consensus.

Fortrea reported Q3 2026 revenue of $691.5 million, beating estimates by 3.1%, with adjusted EPS of $0.28, a 28.9% beat. Adjusted EBITDA was $58 million, an 7.7% beat. The company raised its full-year revenue guidance to $2.68 billion but lowered EBITDA guidance to $214 million. Operating margin improved to 2.2%, while free cash flow margin declined to 7.6%.