Fortrea Holdings Inc. (FTRE) Earnings
Fortrea Holdings Inc. is expected to report next earnings on August 5, 2026 (in NaN days), with a consensus EPS estimate of $0.18. FTRE has beaten EPS estimates in 4 of its last 9 reported quarters (average surprise +145.3% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.03 | $0.16 | +433.3% | $637M | +1.3% |
| Feb 26, 2026 | $0.16 | $0.09 | -43.8% | $661M | +0.0% |
| Nov 5, 2025 | $0.16 | $0.12 | -25.0% | $701M | +5.4% |
| Aug 6, 2025 | $0.06 | $0.19 | +216.7% | $710M | +13.9% |
| Mar 3, 2025 | $0.36 | $0.18 | -50.0% | $697M | +5.4% |
| Nov 8, 2024 | $0.27 | $0.23 | -14.8% | $675M | -4.1% |
| Mar 11, 2024 | $0.23 | $0.19 | -17.4% | $775M | -0.5% |
| Nov 13, 2023 | $0.18 | $0.24 | +33.3% | $776M | +3.7% |
| Aug 14, 2023 | $0.39 | $0.52 | +33.3% | $793M | +2.8% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 5, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
Anshul Thakral mentioned that the company started the year strong, with a Q1 book - to - bill of 1.15 times and a trailing 12 - month book - to - bill of 1.05 times, showing improved commercial execution for the third consecutive quarter. The launch of Fortrea Intelligent Technology (FIT) was a strategic operational milestone, an AI - enabled integrated platform to improve predictability, reduce cost to serve, improve quality, and strengthen client partnership. In commercial performance, there was strength in biotech engagement with more RFPs from biotech, including new to Fortria biotech, and strong double - digit growth in China. Operational excellence was shown through improvements in project management, site activation, and quality management. The Chief Quality Regulatory Affairs and Sustainability Officer was voted chair of the industry association ACRO.
Guidance
Reiterates targeted full - year 2026 revenue guidance in the range of $2.55 billion to $2.65 billion, and targeted adjusted EBITDA guidance in the range of $190 million to $220 million. Anticipates a modest sequential increase in revenue for the second quarter driven by higher underlying service fee revenue and pass - through costs, and a slight step up in adjusted EBITDA as higher revenue is partially offset by increased variable compensation costs. Targets the remainder of 2026 to be operating cash flow positive.
Segment performance
First quarter revenue was $636.5 million, down 2.3% year - over - year, consisting of a 3.2% constant currency decline, partially offset by a 0.9% currency benefit. Underlying full - service clinical revenue grew year - over - year. Adjusted EBITDA for the quarter was $47 million compared to $30.3 million in the prior year period. Net loss in the first quarter of 2026 was $23.6 million compared to a net loss of $562.9 million in the prior year period. Adjusted net income for the quarter was $15.2 million compared to $1.9 million in the prior year period. Book - to - bill was 1.15 times for the quarter and 1.05 times on a trailing 12 - month basis. Backlog was $7.8 billion and cancellations remained in line with historical trends. Operating cash flow was negative $17 million compared to negative $124.2 million in the prior year period, and free cash flow was negative $25 million compared to negative $127.1 million in the first quarter of 2025. Top 10 customers represented 54.8% of revenue for the quarter ended March 31st, 2026.
Analyst Q&A
Q: Patrick Donnelly of Citi asked about the backdrop and biotech competitive nature.
A: Patrick was told that in large pharma there are constructive dialogues, pipeline prioritizations have passed, and in biotech there is a speedier recovery with more RFPs from biotech, especially new to Fortria biotech.
Q: Elizabeth Anderson of Evercore asked about China investment.
A: Anshul said China has always had strength in operations, over 1,000 colleagues covering most clinical trial sites in China, and it's a continued strength with China assets for global markets.
Q: Max Smock of William Blair asked about small biotech market improvement vs share gains.
A: Max was told that there is an uptick in activity, conversations, and RFPs from small and mid - sized biotech, win rates are consistent, and the aperture is increasing with more new to Fortria biotechs.
Q: David Windley of Jefferies asked about client renewals and FSP concession.
A: Anshul said there was elevation in re - procurement conversations in the past, normal levels expected in 2026 and 2027, and the FSP concession was a rate card impact from a client renewing early with new go - forward rates.
Q: Eric Caldwell of Beard asked about booking mix and rescue wins.
A: Anshul said bookings skewed more towards FSO than FSP and more towards biotech than biopharma in Q1, and there was no trend line of rescues in Q1.
Q: Luke Chargott of Barclays asked about leadership changes and momentum.
A: Anshul said Q1 bookings are driven by execution of commercial, delivery, and finance teams.
Q: Charles of TD Cowan asked about AI discussions with sponsors and margin cadence.
A: Anshul said AI conversations are early days, most sponsors are constructive in solving together, and Jill said margins will slowly trend up.
Q: Jalindra Singh of Truist Securities asked about AI financial impact and book - to - bill sustainability.
A: Anshul said near term may have top line pressure and margin appreciation, long term is a tailwind, and he won't guide to book - to - bill.
Q: Justin Bowers of Deutsche Bank asked about FIT launch reception and AI efficiency costs.
A: Anshul said FIT launch was well - received, reception was positive with a two - day workshop, and efficiency gains may overcome costs in near to medium term.
Q: Michael Raskin of Bank of America asked about revenue conversion timing and study durations.
A: Andrea said there will be a moderate step up in revenue in Q2 and continued strength through the year, and an investor day later in the year will lay out more details.