Q2 FY2026
Filed Jul 29, 2026ICON reported $2,063.5 million of second-quarter revenue, $2.56 adjusted diluted earnings per share, $3,120 million of net business wins and reaffirmed full-year 2026 guidance.
Revenue increased 1.2% year on year and net business wins increased 8.3% sequentially, while adjusted EBITDA decreased 21.7% year on year and adjusted diluted earnings per share declined from $3.52 to $2.56.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $2,063,486 (in thousands) | 1.4% | 1.2% |
| Direct costsGAAP | $1,584,192 (in thousands) | – | – |
| Selling, general and administrativeGAAP | $194,318 (in thousands) | – | – |
| Depreciation and amortizationGAAP | $90,767 (in thousands) | – | – |
| Transaction and integration relatedGAAP | $2,529 (in thousands) | – | – |
| RestructuringGAAP | $20,904 (in thousands) | – | – |
| Loss on disposal of subsidiary undertakingGAAP | $32,947 (in thousands) | – | – |
| Total costs and expensesGAAP | $1,925,657 (in thousands) | – | – |
| Income from operationsGAAP | $137,829 (in thousands) | – | – |
| Interest incomeGAAP | $3,155 (in thousands) | – | – |
| Interest expenseGAAP | $(48,787) (in thousands) | – | – |
| Income before income tax (expense) / benefitGAAP | $92,197 (in thousands) | – | – |
| Income tax (expense) / benefitGAAP | $(19,615) (in thousands) | – | – |
| Net incomeGAAP | $72,582 (in thousands) | – | – |
| Diluted earnings per ordinary shareGAAP | $0.94 | – | – |
| Adjusted EBITDAnon-GAAP | $327,246 (in thousands) | increase of 3.0% | decrease of 21.7% |
| Adjusted EBITDA marginnon-GAAP | 15.9% of revenue | – | – |
| Adjusted net incomenon-GAAP | $198,400 (in thousands) | – | – |
| Adjusted diluted net income per Ordinary Sharenon-GAAP | $2.56 | increase of 2.4% | – |
| Effective tax rate on adjusted net incomenon-GAAP | 18.4% | – | – |
| Gross bookingsother | $3,681 million | – | increase of 24.1% |
| Cancellationsother | $562 million | – | – |
| Net business winsother | $3,120 million | increase of 8.3% | – |
| Net book-to-billother | 1.51 | – | – |
| Closing backlogother | $23.4 billion | increase of 3.0% | – |
| Free cash flownon-GAAP | $238.9 million | – | – |
| Cash generated from operating activitiesGAAP | $281.3 million | – | – |
| Capital expenditureother | $42.4 million | – | – |
| Year-to-date revenueGAAP | $4,097,485 (in thousands) | – | increase of 1.1% |
| Year-to-date net incomeGAAP | $177,333 (in thousands) | – | – |
| Year-to-date diluted earnings per ordinary shareGAAP | $2.29 | – | – |
| Year-to-date adjusted EBITDAnon-GAAP | $644,983 (in thousands) | – | a year on year decrease of 20.9% |
| Year-to-date adjusted EBITDA marginnon-GAAP | 15.7% of revenue | – | – |
| Year-to-date adjusted net incomenon-GAAP | $391,347 (in thousands) | – | – |
| Year-to-date adjusted diluted net income per Ordinary Sharenon-GAAP | $5.06 | – | – |
| Year-to-date effective tax rate on adjusted net incomenon-GAAP | 17.8% | – | – |
2026 full-year outlook
- Revenue$7,850 - $8,150 million
- NoteAdjusted diluted earnings per share expected in the range of $10.00 - $11.00.
Capital returns
- $7.4 million of Term Loan B payments were made during the quarter.
- Repurchase of ordinary shares was — for the six months ended June 30, 2026, compared to $(500,000) (in thousands) for the six months ended June 30, 2025.
What drove it
- Revenue and net bookings benefited from higher pass-through activity.
- Strong strategic wins and new customer acquisition supported a direct fee book-to-bill ratio of 1.2x.
- Disciplined cost management offset anticipated operational headwinds.
- The disposal of Symphony Health Solutions Corporation on May 8, 2026 resulted in a pre-tax loss on disposal, including transaction costs, of $32.9 million.
- Adjusted measures exclude amortization, stock-based compensation, foreign currency gains and losses, restructuring, transaction, integration related and other adjustments, transaction-related financing costs, fair value movement on investments in equity, goodwill impairment, impairment of non-financial assets, loss on disposal of subsidiary undertaking and related taxation effect, as applicable.
Concerns
- Adjusted EBITDA decreased 21.7% on quarter two 2025.
- Adjusted diluted earnings per share was $2.56, compared to $3.52 per share in quarter two 2025.
- Year-to-date revenue increased 1.1% but decreased 0.8% on a constant currency basis.
- Second-half performance remains subject to variability in factors such as pass-through activity.
- GAAP net income was affected by $32.9 million of pre-tax loss on disposal, including transaction costs, related to Symphony Health Solutions Corporation.
What to watch
- Progress against full-year revenue guidance of $7,850 - $8,150 million.
- Progress against full-year adjusted diluted earnings per share guidance of $10.00 - $11.00.
- Pass-through activity and its effect on revenue and net bookings.
- Direct fee book-to-bill ratio, net business wins and backlog.
- Adjusted EBITDA performance and disciplined cost management.
- Cash generation, Term Loan B payments and net debt.
Balance sheet and cash flow
- Cash and cash equivalents were $928.4 million at June 30, 2026, compared to $765.2 million at March 31, 2026 and $390.4 million at June 30, 2025.
- Net debt was $2.5 billion at June 30, 2026, with a net debt to adjusted EBITDA ratio of 1.8x.
- Cash and cash equivalents were $928,385 (in thousands) at June 30, 2026, compared to $647,295 (in thousands) at December 31, 2025.
- Current bank credit lines, loan facilities and notes were $1,279,762 (in thousands) at June 30, 2026, compared to $529,762 (in thousands) at December 31, 2025.
- Non-current bank credit lines, loan facilities and notes, net were $2,110,783 (in thousands) at June 30, 2026, compared to $2,872,616 (in thousands) at December 31, 2025.
- Net cash provided by operating activities was $448,276 (in thousands) for the six months ended June 30, 2026, compared to $414,441 (in thousands) for the six months ended June 30, 2025.
- Purchase of property, plant and equipment was $(73,193) (in thousands) for the six months ended June 30, 2026, compared to $(61,185) (in thousands) for the six months ended June 30, 2025.
- Cash outflow on disposal of subsidiary undertaking, including cash sold, was $(55,513) (in thousands) for the six months ended June 30, 2026.
- Net increase / (decrease) in cash and cash equivalents was $281,090 (in thousands) for the six months ended June 30, 2026, compared to $(148,389) (in thousands) for the six months ended June 30, 2025.
Analysis
ICON reported second-quarter revenue of $2,063.5 million, up 1.2% on quarter two 2025 and up 0.4% on a constant currency basis. Revenue was also described as increasing 1.4% on quarter one 2026. Commercial activity was stronger, with gross bookings of $3,681 million, cancellations of $562 million, net business wins of $3,120 million and a net book-to-bill of 1.51. Backlog reached $23.4 billion, increasing 3.0% on quarter one 2026.
Profitability was materially lower than the prior-year quarter. GAAP net income was $72.6 million, or $0.94 diluted earnings per share, compared with $2.56 per share in quarter two 2025. Adjusted EBITDA was $327.2 million, or 15.9% of revenue, a decrease of 21.7% on quarter two 2025. Adjusted net income was $198.4 million and adjusted diluted earnings per share was $2.56, compared with $3.52 per share in quarter two 2025. The company cited disciplined cost management as an offset to anticipated operational headwinds.
The reported GAAP result included a $32.9 million pre-tax loss on the disposal, including transaction costs, of Symphony Health Solutions Corporation. ICON completed that disposal on May 8, 2026, and excludes the loss from adjusted EBITDA and adjusted net income. Year-to-date results similarly show limited reported revenue growth and lower earnings: revenue was $4,097.5 million, adjusted EBITDA was $645.0 million, or 15.7% of revenue, and adjusted diluted earnings per share was $5.06 compared with $6.79 for the equivalent prior-year period.
Cash generation remained a stated capital-allocation support. Free cash flow was $238.9 million in the quarter and cash generated from operating activities was $281.3 million. Cash and cash equivalents were $928.4 million at June 30, 2026, while net debt was $2.5 billion and net debt to adjusted EBITDA was 1.8x. The company made $7.4 million of Term Loan B payments during the quarter and recorded net cash outflows on the disposal of a subsidiary undertaking of $55.5 million.
ICON reaffirmed its 2026 full-year outlook for revenue of $7,850 - $8,150 million and adjusted diluted earnings per share of $10.00 - $11.00. Management identified pass-through activity as both a contributor to revenue and bookings and a source of second-half variability. The main reported operating markers for the balance of the year are the conversion of backlog, direct fee book-to-bill, the level of pass-through activity, adjusted EBITDA performance and cash generation.
Management, verbatim
ICON's second quarter results reflect measured progress, as disciplined cost management offset anticipated operational headwinds. While revenue and net bookings benefited from higher pass-through activity, strong strategic wins and new customer acquisition supported a direct fee book-to-bill ratio of 1.2x, underscoring the strength of our focused commercial strategy and diversified, scaled platform. We are reaffirming our 2026 financial outlook, which reflects both opportunities and risks over the balance of the year. While second-half performance remains subject to variability in factors such as pass-through activity, the underlying fundamentals of our business remain solid, supported by our diversified portfolio, operational agility and disciplined cost management. Strong cash generation continues to support our capital allocation priorities, including investing in strategic growth opportunities and returning capital to shareholders.
Mr. Barry Balfe, CEO
Not in the filing
stated, not guessed- Reportable revenue segments and segment revenue comparisons were not provided.
- Gross profit and gross margin were not provided.
- Quarterly GAAP operating cash flow comparison with the prior-year quarter was not provided.
- Quarterly free cash flow comparison with the prior-year quarter was not provided.
- Quarterly gross debt was not provided.
- Dividends were not provided.
- A GAAP effective tax rate was not provided.
- Full-year 2026 gross-margin, operating-expense and tax-rate guidance were not provided.
- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
AlphaAI 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.