Overview

• US clinical trials provider reported a smaller than expected drop in Q1 revenue

• Adjusted EBITDA beat analyst expectations

• Company reaffirmed full-year 2026 guidance

Outlook

• Fortrea affirms 2026 full-year revenue guidance of $2,550 mln to $2,650 mln

• Company maintains 2026 adjusted EBITDA guidance of $190 mln to $220 mln

• Fortrea says commercial traction across biotech and pharma clients supports confidence in outlook

Result Drivers

• COMMERCIAL TRACTION - Co said performance was supported by commercial traction across biotech and large pharma clients

• STRATEGIC INITIATIVES - Co cited focus on strategic journey back to growth and margin expansion as supporting Q1 results, per CEO Anshul Thakral

• TECHNOLOGY INVESTMENT - Launch of Fortrea Intelligent Technology highlighted as part of commitment to outcomes-based innovation

Company press release: ID:nGNX712N4G

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$636.50 mln	$625.40 mln (10 Analysts)
Q1 EPS		-$0.25
Q1 Net Income		-$23.60 mln
Q1 Adjusted EBITDA	Beat	$47 mln	$34.32 mln (10 Analysts)
Q1 Pretax Profit	Miss	-$12.30 mln	$11.33 mln (5 Analysts)
Q1 Operating Income		-$3.40 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Fortrea Holdings Inc is $12.50, about 2% above its May 4 closing price of $12.25

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 21 three months ago

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