ICON plc (NASDAQ: ICLR) Q2 2026 results show bookings strength and lower EPS
Rhea-AI Filing Summary
ICON plc reported second quarter 2026 revenue of $2,063.5 million, up 1.4% on quarter one 2026 and 1.2% year on year. Adjusted EBITDA was $327.2 million, or 15.9% of revenue, a decrease of 21.7% versus quarter two 2025.
GAAP net income was $72.6 million, or $0.94 diluted EPS, compared with $2.56 a year earlier. Adjusted net income was $198.4 million, or $2.56 adjusted diluted EPS, down from $3.52. Results reflect items including a $32.9 million pre-tax loss on the disposal of Symphony Health Solutions Corporation and ongoing restructuring and transaction-related costs.
Demand indicators remain strong, with gross bookings of $3,681 million (up 24.1% year on year), net business wins of $3,120 million, a book-to-bill of 1.51, and backlog of $23.4 billion, up 3.0% on quarter one 2026. Free cash flow was $238.9 million, cash and cash equivalents were $928.4 million, and net debt was $2.5 billion, a net debt to adjusted EBITDA ratio of 1.8x. Year to date, revenue reached $4,097.5 million and adjusted diluted EPS was $5.06. ICON reaffirmed 2026 guidance for revenue of $7,850–$8,150 million and adjusted diluted EPS of $10.00–$11.00.
Positive
- Strong bookings and backlog: Gross bookings of $3,681 million (up 24.1% year on year), net business wins of $3,120 million, book-to-bill of 1.51, and backlog of $23.4 billion support future revenue visibility.
- Robust cash generation and leverage profile: Free cash flow of $238.9 million, cash of $928.4 million, and net debt of $2.5 billion (1.8x net debt to adjusted EBITDA) provide financial flexibility.
Negative
- Significant earnings compression: Quarter two 2026 GAAP diluted EPS fell to $0.94 from $2.56, and adjusted diluted EPS to $2.56 from $3.52, while adjusted EBITDA declined 21.7% year on year.
- Loss on business disposal: ICON recorded a pre-tax loss of $32.9 million on the disposal of Symphony Health Solutions Corporation, weighing on profitability.
Filing Explained
ICON completed the Symphony disposal on May 8, 2026; it produced a $55.5 million cash outflow and a $32.9 million pre-tax loss.
This Form 6-K is an interim report from a foreign private issuer, and it reports the quarter ended
The disposal was completed on
The company’s adjusted EBITDA and adjusted net income exclude items including restructuring, transaction-related costs, stock compensation, and the disposal loss, so those measures provide non-GAAP views alongside—not replacements for—GAAP results. For the six months ended
Key Figures
Q2 2026 Revenue: $2,063.5 million
Q2 2026 GAAP Net Income: $72.6 million
Q2 2026 Adjusted EBITDA: $327.2 million
+5 more
8 metrics
Q2 2026 Revenue
$2,063.5 million
Revenue for the second quarter 2026, up 1.2% year on year
Q2 2026 GAAP Net Income
$72.6 million
Net income for the second quarter 2026 with diluted EPS of $0.94
Q2 2026 Adjusted EBITDA
$327.2 million
Adjusted EBITDA for Q2 2026, 15.9% of revenue, down 21.7% year on year
Net Business Wins Q2 2026
$3,120 million
Second quarter 2026 net business wins, book-to-bill ratio 1.51
Backlog June 30, 2026
$23.4 billion
Closing backlog at June 30, 2026, up 3.0% on quarter one 2026
Free Cash Flow Q2 2026
$238.9 million
Free cash flow generated in the second quarter 2026
Net Debt and Leverage
$2.5 billion; 1.8x
Net debt and net debt to adjusted EBITDA ratio at June 30, 2026
2026 Revenue Guidance
$7,850–$8,150 million
Full-year 2026 expected revenue range reaffirmed
Key Terms
book-to-bill, adjusted EBITDA, backlog, free cash flow, +2 more
6 terms
book-to-bill financial
"This resulted in net business wins of $3,120 million and a book-to-bill of 1.51."
The book-to-bill ratio compares new orders a company has received (bookings) to the products or services it has invoiced or shipped (billings) over the same period. It matters to investors because a ratio above 1 means demand is outpacing fulfillment and the company may grow revenue or build backlog, while a ratio below 1 suggests slowing demand and possible future revenue weakness — think of it as new customer orders versus what the company actually sold.
adjusted EBITDA financial
"Adjusted EBITDA for the second quarter was $327.2 million or 15.9% of revenue, a decrease of 21.7%."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
backlog financial
"Backlog as at June 30, 2026 was $23.4 billion."
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
free cash flow financial
"Free cash flow was $238.9 million in the quarter."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
non-GAAP financial measures financial
"In addition to the financial measures prepared in accordance with GAAP, this press release contains certain non-GAAP financial measures."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Putative Class Action regulatory
"costs incurred in 2026 relating to the Investigation ... and in defense of the Putative Class Action are classified"
A putative class action is a lawsuit brought on behalf of a group of people who allege similar harm, filed before a court has formally approved that group as a legal 'class.' For investors it matters because, if the court later certifies the class, the company could face consolidated claims, larger damages and greater legal and reputational risk—like one small alarm that may turn into a building-wide evacuation if authorities confirm a shared problem.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did ICON plc (ICLR) perform financially in Q2 2026?
ICON reported Q2 2026 revenue of $2,063.5 million, up 1.2% year on year. GAAP net income was $72.6 million with diluted EPS of $0.94, while adjusted net income was $198.4 million and adjusted diluted EPS was $2.56.
What were ICON plc (ICLR)’s Q2 2026 bookings, book-to-bill, and backlog?
Gross bookings were $3,681 million, up 24.1% versus Q2 2025, with net business wins of $3,120 million and a book-to-bill ratio of 1.51. Closing backlog reached $23.4 billion, increasing 3.0% from quarter one 2026.
How did ICON plc (ICLR)’s Q2 2026 earnings compare with last year?
Quarter two 2026 diluted EPS was $0.94, down from $2.56 in quarter two 2025. Adjusted diluted EPS was $2.56, versus $3.52 a year earlier, and adjusted EBITDA dropped 21.7% to $327.2 million.
What is ICON plc (ICLR)’s 2026 full-year financial guidance?
ICON reaffirmed 2026 guidance, expecting revenue between $7,850 million and $8,150 million and adjusted diluted EPS between $10.00 and $11.00. These outlook figures are presented on a non-GAAP basis without reconciliation to GAAP earnings measures.
What is ICON plc (ICLR)’s leverage and cash flow position as of June 30, 2026?
As of June 30, 2026, ICON reported net debt of $2.5 billion, equating to 1.8x net debt to adjusted EBITDA. The company generated free cash flow of $238.9 million in the quarter, with cash and cash equivalents of $928.4 million.
What were ICON plc (ICLR)’s year-to-date 2026 results?
Year to date 2026, ICON generated revenue of $4,097.5 million, up 1.1% year on year. GAAP net income was $177.3 million with diluted EPS of $2.29, while adjusted diluted EPS was $5.06, down from $6.79 in the prior-year period.
How is ICON plc (ICLR) using non-GAAP metrics like adjusted EBITDA and adjusted EPS?
ICON reports adjusted EBITDA, adjusted net income and adjusted diluted EPS, excluding items such as amortization, stock-based compensation, restructuring, transaction and integration costs, foreign currency effects, fair value movements, loss on disposal, and related taxes, to aid historical comparison alongside GAAP results.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July 2026
Commission File Number: 333-08704
ICON plc
(Translation of registrant's name into English)
South County Business Park, Leopardstown, Dublin 18, D18 X5R3, Ireland
(Address of principal executive offices)
| Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. | |||||||||||
Form 20-F ☒ | Form 40-F ☐ | ||||||||||
EXHIBIT LIST
| Exhibit | Description | |||||||
99.1 | ICON plc Press Release issued July 29, 2026 - ICON reports Second Quarter 2026 results | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| ICON plc | |||||||||||
| By: | /s/ Nigel Clerkin | ||||||||||
Date: July 29, 2026 | Name: | Nigel Clerkin | |||||||||
| Title: | Chief Financial Officer | ||||||||||
Exhibit 99.1
ICON Reports Second Quarter 2026 Results
Highlights
•Quarter two revenue of $2,063.5 million, an increase of 1.4% on quarter one 2026.
•Quarter two adjusted EBITDA of $327.2 million or 15.9% of revenue, an increase of 3.0% on quarter one 2026.
•GAAP net income for the quarter of $72.6 million or $0.94 diluted earnings per share.
•Quarter two adjusted net income of $198.4 million or $2.56 adjusted diluted earnings per share, an increase of 2.4% on quarter one 2026 adjusted diluted earnings per share.
•Net business wins in the quarter of $3,120 million; a net book-to-bill of 1.51, an increase of 8.3% on quarter one 2026 net business wins.
•Closing backlog of $23.4 billion, an increase of 3.0% on quarter one 2026.
•Net debt of $2.5 billion at June 30, 2026 with a net debt to adjusted EBITDA ratio of 1.8x.
•Reaffirming 2026 full-year financial guidance issued with revenue expected in the range of $7,850 - $8,150 million and adjusted diluted earnings per share* expected in the range of $10.00 - $11.00.
Dublin, Ireland, July 29, 2026 – ICON plc (NASDAQ: ICLR), a world-leading clinical research organization, today reported its financial results for the second quarter ended June 30, 2026.
CEO, Mr. Barry Balfe commented, “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.”
Second Quarter 2026 Results
In quarter two 2026, gross bookings were $3,681 million, an increase of 24.1% on quarter two 2025, with cancellations of $562 million. This resulted in net business wins of $3,120 million and a book-to-bill of 1.51. Backlog as at June 30, 2026 was $23.4 billion.
Revenue for the second quarter was $2,063.5 million. This represents an increase of 1.2% on quarter two 2025, an increase of 0.4% on a constant currency basis.
GAAP net income was $72.6 million, resulting in diluted earnings per share of $0.94 in quarter two 2026, compared to diluted earnings per share of $2.56 in quarter two 2025. Adjusted net income for the quarter was $198.4 million, resulting in adjusted diluted earnings per share of $2.56 compared to $3.52 per share in quarter two 2025.
Adjusted EBITDA for the second quarter was $327.2 million or 15.9% of revenue, a decrease of 21.7% on quarter two 2025.
The effective tax rate on adjusted net income in quarter two 2026 was 18.4%.
1
Free cash flow was $238.9 million in the quarter. Cash generated from operating activities for the quarter was $281.3 million. During the quarter, $42.4 million was spent on capital expenditure. $7.4 million of Term Loan B payments were made during the quarter and there were net cash outflows on the disposal of a subsidiary undertaking of $55.5 million. At June 30, 2026, the Group had cash and cash equivalents of $928.4 million, compared to cash and cash equivalents of $765.2 million at March 31, 2026 and $390.4 million at June 30, 2025. Net debt as at June 30, 2026 was $2.5 billion.
Year to date 2026 Results
Gross business wins year to date were $6,944 million and cancellations were $945 million. This resulted in net business wins of $5,999 million and a book-to-bill of 1.46.
Revenue year to date was $4,097.5 million. This represents a year on year increase of 1.1% or a decrease of 0.8% on a constant currency basis.
GAAP net income year to date was $177.3 million, resulting in $2.29 diluted earnings per share. Year to date adjusted net income was $391.3 million, resulting in an adjusted diluted earnings per share of $5.06 compared to $6.79 per share for the equivalent prior year period.
Adjusted EBITDA year to date was $645.0 million or 15.7% of revenue, a year on year decrease of 20.9%.
The effective tax rate on adjusted net income year to date was 17.8%.
Conference Call Details
ICON will hold a conference call on July 30, 2026 at 08:00 EDT [13:00 Ireland & UK]. This call and linked slide presentation can be accessed live from our website at http://investor.iconplc.com. A recording will also be available on the website for 90 days following the call. In addition, a calendar of company events, including upcoming conference presentations, is available on our website, under “Investors”. This calendar will be updated regularly.
Other Information
Cautionary Statement Regarding Forward-Looking Statements
Statements included herein which are not historical facts are forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not limited to, statements regarding the following: anticipated financial results for 2026; contracted revenue; the Company's expectations regarding business momentum, market opportunity, demand trends, growth, and commercial performance; and the Company's expectations with respect to its long-term value creation and competitive positioning. You can identify many forward-looking statements by words such as “aims,” “anticipates,” “believes,” “continues,” “could,” “estimates,” “expects,” “focused,” “guidance,” “intends,” “look,” “may,” “opportunities,” “plans,” “positions,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will,” “would” and other similar expressions and the negatives of such expressions. However, not all forward-looking statements contain these words. These statements are based on management's current expectations and information currently available, including current economic and industry conditions. The forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, our results could be materially adversely affected. The risks and uncertainties include, but are not limited to, dependence on the pharmaceutical industry and certain clients, the need to regularly win projects and then to execute them efficiently and correctly, the challenges presented by rapid growth, competition and the continuing consolidation of the industry, the impact of market conditions on demand for the Company's services, risks related to the Company's ability to execute on its commercial strategy and maintain relationships with large pharmaceutical customers, and risks relating to the Company's strategic partnerships, the dependence on certain key executives, changes in the regulatory environment, exchange rate fluctuations, inflation and rising labor costs. Please also refer to the section entitled "Risk Factors" of our Annual Report on Form 20-F for the year ended December 31, 2025 filed on May 27, 2026 for a discussion of some of the principal risks that could adversely affect our business, operations and financial results. The Company’s forward-looking statements speak only as of the date of this report or as of the date they are made, and the Company undertakes no obligation to update its forward-looking statements.
Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income and adjusted diluted earnings per share and free cash flow. Adjusted EBITDA excludes stock-based compensation, foreign currency gains and losses, restructuring, transaction, integration related and other adjustments, fair value movement on investments in equity, loss of disposal of subsidiary undertaking, goodwill impairment and impairment of non-financial assets. Adjusted net income and adjusted diluted earnings per share exclude amortization, stock-based compensation,
2
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 of disposal of subsidiary undertaking and their related taxation effect. Free cash flow reflects cash generated from operating activities less capital expenditure. While non-GAAP financial measures are not superior to or a substitute for the comparable GAAP measures, ICON believes certain non-GAAP information is useful to investors for historical comparison purposes.
*Adjusted diluted earnings per share to 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 their related taxation effect.
Our full-year 2026 guidance adjusted diluted earnings per share measures are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measure because the Company is unable to predict with a reasonable degree of certainty certain items contained in the measures without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information.
ICON plc is a world-leading clinical research organization. Offering deep operational and medical expertise we accelerate innovation, driving emerging therapies forward to improve patient outcomes. From molecule to medicine, we deliver integrated consulting, clinical development, commercialization and post-marketing solutions to pharmaceutical, biotechnology, medical device, government and public health organizations worldwide. With headquarters in Dublin, Ireland, ICON employed approximately 40,200 employees in 99 locations in 55 countries as at June 30, 2026. For further information about ICON, visit: www.iconplc.com.
Source: ICON plc
Contact: Investor Relations +1 888 381 7923
Nigel Clerkin Chief Financial Officer +353 1 291 2000
Kate Haven Vice President Investor Relations +1 888 381 7923
All at ICON
ICON/ICLR-F
3
ICON plc
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND JUNE 30, 2025
(UNAUDITED)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||||||||
| (in thousands, except share and per share data) | ||||||||||||||||||||||||||
| Revenue | $ | 2,063,486 | $ | 2,039,088 | $ | 4,097,485 | $ | 4,054,408 | ||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||
| Direct costs | 1,584,192 | 1,455,758 | 3,140,265 | 2,905,016 | ||||||||||||||||||||||
| Selling, general and administrative | 194,318 | 205,006 | 394,916 | 403,390 | ||||||||||||||||||||||
| Depreciation and amortization | 90,767 | 97,718 | 181,098 | 193,676 | ||||||||||||||||||||||
| Transaction and integration related | 2,529 | 6,717 | 5,716 | 12,121 | ||||||||||||||||||||||
| Restructuring | 20,904 | 42,950 | 30,980 | 82,296 | ||||||||||||||||||||||
| Loss on disposal of subsidiary undertaking | 32,947 | — | 32,947 | — | ||||||||||||||||||||||
| Total costs and expenses | 1,925,657 | 1,808,149 | 3,785,922 | 3,596,499 | ||||||||||||||||||||||
| Income from operations | 137,829 | 230,939 | 311,563 | 457,909 | ||||||||||||||||||||||
| Interest income | 3,155 | 2,054 | 4,976 | 3,856 | ||||||||||||||||||||||
| Interest expense | (48,787) | (50,151) | (96,784) | (97,760) | ||||||||||||||||||||||
| Income before income tax (expense) / benefit | 92,197 | 182,842 | 219,755 | 364,005 | ||||||||||||||||||||||
| Income tax (expense) / benefit | (19,615) | 20,674 | (42,422) | 323 | ||||||||||||||||||||||
| Net income | $ | 72,582 | $ | 203,516 | $ | 177,333 | $ | 364,328 | ||||||||||||||||||
| Net income per ordinary share: | ||||||||||||||||||||||||||
| Basic | $ | 0.94 | $ | 2.57 | $ | 2.31 | $ | 4.56 | ||||||||||||||||||
| Diluted | $ | 0.94 | $ | 2.56 | $ | 2.29 | $ | 4.54 | ||||||||||||||||||
| Weighted average number of ordinary shares outstanding: | ||||||||||||||||||||||||||
| Basic | 76,845,757 | 79,245,448 | 76,712,589 | 79,899,091 | ||||||||||||||||||||||
| Diluted | 77,371,396 | 79,547,444 | 77,316,605 | 80,235,900 | ||||||||||||||||||||||
4
ICON plc
CONSOLIDATED BALANCE SHEETS
AS AT JUNE 30, 2026 AND DECEMBER 31, 2025
| (Unaudited) | (Audited) | |||||||||||||
| June 30, 2026 | December 31, 2025 | |||||||||||||
| ASSETS | (in thousands) | |||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 928,385 | $ | 647,295 | ||||||||||
| Accounts receivable, net of allowance for credit losses | 1,458,354 | 1,474,898 | ||||||||||||
| Unbilled revenue | 1,054,478 | 1,096,592 | ||||||||||||
| Other receivables | 117,413 | 116,750 | ||||||||||||
| Prepayments and other current assets | 114,811 | 105,316 | ||||||||||||
| Income taxes receivable | 75,204 | 60,824 | ||||||||||||
| Total current assets | $ | 3,748,645 | $ | 3,501,675 | ||||||||||
| Non-current assets: | ||||||||||||||
| Property, plant and equipment, net | 385,427 | 395,724 | ||||||||||||
| Goodwill | 8,721,268 | 8,731,689 | ||||||||||||
| Intangible assets, net | 3,146,498 | 3,247,118 | ||||||||||||
| Operating right-of-use assets | 114,859 | 128,948 | ||||||||||||
| Other receivables | 68,985 | 75,707 | ||||||||||||
| Deferred tax asset | 107,409 | 106,871 | ||||||||||||
| Investments in equity | 107,229 | 82,050 | ||||||||||||
| Total Assets | $ | 16,400,320 | $ | 16,269,782 | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 118,238 | $ | 192,117 | ||||||||||
| Unearned revenue | 1,603,204 | 1,550,471 | ||||||||||||
| Other liabilities | 916,522 | 904,826 | ||||||||||||
| Income taxes payable | 16,939 | 18,999 | ||||||||||||
| Current bank credit lines, loan facilities and notes | 1,279,762 | 529,762 | ||||||||||||
| Total current liabilities | $ | 3,934,665 | $ | 3,196,175 | ||||||||||
| Non-current liabilities: | ||||||||||||||
| Non-current bank credit lines, loan facilities and notes, net | 2,110,783 | 2,872,616 | ||||||||||||
| Lease liabilities | 102,790 | 117,122 | ||||||||||||
| Non-current other liabilities | 77,674 | 72,807 | ||||||||||||
| Non-current income taxes payable | 105,923 | 103,251 | ||||||||||||
| Deferred tax liability | 690,323 | 714,427 | ||||||||||||
| Commitments and contingencies | — | — | ||||||||||||
| Total Liabilities | $ | 7,022,158 | $ | 7,076,398 | ||||||||||
| Shareholders' Equity: | ||||||||||||||
| Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, | ||||||||||||||
| 77,154,209 shares issued and outstanding at June 30, 2026 and | ||||||||||||||
| 76,567,325 shares issued and outstanding at December 31, 2025 | 6,346 | 6,305 | ||||||||||||
| Additional paid‑in capital | 7,180,646 | 7,131,956 | ||||||||||||
| Other undenominated capital | 1,606 | 1,606 | ||||||||||||
| Accumulated other comprehensive loss | (109,820) | (68,534) | ||||||||||||
| Retained earnings | 2,299,384 | 2,122,051 | ||||||||||||
| Total Shareholders' Equity | $ | 9,378,162 | $ | 9,193,384 | ||||||||||
| Total Liabilities and Shareholders' Equity | $ | 16,400,320 | $ | 16,269,782 | ||||||||||
5
ICON plc
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND JUNE 30, 2025
(UNAUDITED)
| Six Months Ended | ||||||||||||||
| June 30, 2026 | June 30, 2025 | |||||||||||||
| (in thousands) | ||||||||||||||
| Cash flows provided by operating activities: | ||||||||||||||
| Net income | $ | 177,333 | $ | 364,328 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization expense | 181,098 | 193,676 | ||||||||||||
| Impairment of operating right-of-use assets and related property, plant and equipment | — | 5,573 | ||||||||||||
| Reduction in carrying value of operating right-of-use assets | 17,888 | 18,977 | ||||||||||||
| Loss on disposal of subsidiary undertaking | 32,947 | — | ||||||||||||
| Amortization of financing costs and debt discount | 3,048 | 2,971 | ||||||||||||
| Stock compensation expense | 46,030 | 27,610 | ||||||||||||
| Deferred tax benefit | (26,142) | (46,095) | ||||||||||||
| Unrealized foreign exchange movements | (22,905) | 34,777 | ||||||||||||
| Other non-cash items | 5,048 | 15,266 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Accounts receivable | (46,728) | 15,149 | ||||||||||||
| Unbilled revenue | 34,981 | (138,521) | ||||||||||||
| Unearned revenue | 107,463 | 25,761 | ||||||||||||
| Other net assets | (61,785) | (105,031) | ||||||||||||
| Net cash provided by operating activities | 448,276 | 414,441 | ||||||||||||
| Cash flows used in investing activities: | ||||||||||||||
| Purchase of property, plant and equipment | (73,193) | (61,185) | ||||||||||||
| Purchase of subsidiary undertakings (net of cash acquired) | — | (2,537) | ||||||||||||
| Cash outflow on disposal of subsidiary undertaking (including cash sold) | (55,513) | — | ||||||||||||
| Proceeds from investments in equity | 4,741 | 561 | ||||||||||||
| Purchase of investments in equity | (23,809) | (12,330) | ||||||||||||
| Net cash used in investing activities | (147,774) | (75,491) | ||||||||||||
| Cash flows used in financing activities: | ||||||||||||||
| Debt issue costs | (2,294) | — | ||||||||||||
| Drawdown of credit lines and loan facilities | — | 50,000 | ||||||||||||
| Repayment of credit lines and loan facilities | (14,881) | (64,881) | ||||||||||||
| Proceeds from exercise of equity compensation | 2,710 | 6,498 | ||||||||||||
| Share issue costs | (9) | (9) | ||||||||||||
| Repurchase of ordinary shares | — | (500,000) | ||||||||||||
| Share repurchase costs | — | (300) | ||||||||||||
| Net cash used in financing activities | (14,474) | (508,692) | ||||||||||||
| Effect of exchange rate movements on cash | (4,938) | 21,353 | ||||||||||||
| Net increase / (decrease) in cash and cash equivalents | 281,090 | (148,389) | ||||||||||||
| Cash and cash equivalents at beginning of period | 647,295 | 538,785 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 928,385 | $ | 390,396 | ||||||||||
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ICON plc
RECONCILIATION OF NON-GAAP MEASURES
FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2026 AND JUNE 30, 2025
(UNAUDITED)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||||||||
| (in thousands, except share and per share data) | ||||||||||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||
| Net income | $ | 72,582 | $ | 203,516 | $ | 177,333 | $ | 364,328 | ||||||||||||||||||
| Income tax expense / (benefit) | 19,615 | (20,674) | 42,422 | (323) | ||||||||||||||||||||||
Net interest expense | 45,632 | 48,097 | 91,808 | 93,904 | ||||||||||||||||||||||
| Depreciation and amortization | 90,767 | 97,718 | 181,098 | 193,676 | ||||||||||||||||||||||
Stock-based compensation expense (a) | 19,436 | 15,433 | 46,418 | 27,727 | ||||||||||||||||||||||
Foreign currency losses / (gains), net (b) | 670 | 24,015 | (7,705) | 42,110 | ||||||||||||||||||||||
Restructuring (c) | 20,904 | 42,950 | 30,980 | 82,296 | ||||||||||||||||||||||
Transaction, integration related and other (d) | 24,693 | 6,717 | 56,060 | 12,121 | ||||||||||||||||||||||
Fair value movement on investments in equity (f) | — | — | (6,378) | — | ||||||||||||||||||||||
Loss on disposal of subsidiary undertaking (g) | 32,947 | — | 32,947 | — | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 327,246 | $ | 417,772 | $ | 644,983 | $ | 815,839 | ||||||||||||||||||
| Adjusted net income and adjusted diluted net income per Ordinary Share | ||||||||||||||||||||||||||
| Net income | $ | 72,582 | $ | 203,516 | $ | 177,333 | $ | 364,328 | ||||||||||||||||||
| Income tax expense / (benefit) | 19,615 | (20,674) | 42,422 | (323) | ||||||||||||||||||||||
| Amortization | 50,108 | 59,057 | 100,387 | 118,003 | ||||||||||||||||||||||
Stock-based compensation expense (a) | 19,436 | 15,433 | 46,418 | 27,727 | ||||||||||||||||||||||
Foreign currency losses / (gains), net (b) | 670 | 24,015 | (7,705) | 42,110 | ||||||||||||||||||||||
Restructuring (c) | 20,904 | 42,950 | 30,980 | 82,296 | ||||||||||||||||||||||
Transaction, integration related and other (d) | 24,693 | 6,717 | 56,060 | 12,121 | ||||||||||||||||||||||
Transaction-related financing costs (e) | 2,182 | 1,506 | 3,701 | 2,971 | ||||||||||||||||||||||
Fair value movement on investments in equity (f) | — | — | (6,378) | — | ||||||||||||||||||||||
Loss on disposal of subsidiary undertaking (g) | 32,947 | — | 32,947 | — | ||||||||||||||||||||||
Adjusted tax expense (h) | (44,737) | (52,206) | (84,818) | (104,147) | ||||||||||||||||||||||
| Adjusted net income | $ | 198,400 | $ | 280,314 | $ | 391,347 | $ | 545,086 | ||||||||||||||||||
| Diluted weighted average number of Ordinary Shares outstanding | 77,371,396 | 79,547,444 | 77,316,605 | 80,235,900 | ||||||||||||||||||||||
Adjusted diluted net income per Ordinary Share | $ | 2.56 | $ | 3.52 | $ | 5.06 | $ | 6.79 | ||||||||||||||||||
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(a)Stock-based compensation expense represents the amount of expense related to the Company’s equity compensation programs (inclusive of employer related taxes).
(b)Foreign currency losses / (gains), net relates to gains or losses that arise in connection with the revaluation, or settlement, of non-US dollar denominated assets and liabilities. We exclude these gains and losses from adjusted EBITDA and adjusted net income because fluctuations from period-to-period do not necessarily correspond to changes in our operating results.
(c)Restructuring relates to charges incurred in connection with the Company's realignment of its workforce, with the elimination of redundant positions as well as reviewing its global office footprint and optimizing its locations to best fit the requirements of the Company.
(d)Transaction, integration related and other costs include expenses associated with our acquisitions and any other costs incurred related to the integration of these acquisitions. Further, costs incurred in 2026 relating to the Investigation, including out of scope audit fees resulting from the impact of the investigation, and in defense of the Putative Class Action are classified within this category.
(e)Transaction-related financing costs includes costs incurred in connection with changes to our long-term debt and amortization of financing fees. We exclude these costs from adjusted net income because they result from financing decisions rather than from decisions made related to our ongoing operations.
(f)Fair value movement on investments in equity. We exclude these movements from adjusted EBITDA and adjusted net income because fluctuations from period-to-period do not necessarily correspond to changes in our operating results.
(g)On May 8, 2026, ICON completed the disposal of Symphony Health Solutions Corporation. The Company recognized a pre-tax loss on disposal, including transaction costs, of $32.9 million. This loss is excluded from adjusted EBITDA and adjusted net income.
(h)Represents the tax effect of adjusted pre-tax income at our estimated effective tax rate.
ICON plc
| Contact: | Investor Relations +1 888 381 7923 | ||||
Nigel Clerkin Chief Financial Officer +353 1 291 2000 | |||||
| Kate Haven Vice President Investor Relations +1 888 381 7923 | |||||
| http://www.iconplc.com | |||||
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