GICS Sector : Healthcare
ICON Public Limited Company, a clinical research organization, provides outsourced development and commercialization services in Ireland, rest of Europe, the United States, and internationally.The company specializes in the strategic development, management, and analysis of programs that support various stages of the clinical development process from compound selection to Phase I-IV clinical studies.It offers clinical development services, including early development, patient recruitment and retention, strategy and analytics, late phase research, data and technology solution, and consulting and analytics services.
ICON plc reported a stable Q3 2025 performance, with revenue reaching $2.043 billion, up 0.6% year-over-year and 1.3% sequentially. The adjusted EBITDA margin was 19.4%, a 20 basis point sequential decline. Adjusted earnings per share (EPS) came in at $3.31, beating estimates of $3.28, and representing a 1.5% increase over Q2. The company's gross business awards totaled $3 billion, up mid-single digits year-over-year. With a current P/E Ratio of 22.65 and an EV/EBITDA of 12.8, the market seems to be pricing in a certain level of growth and profitability.
Publication Date: Oct -24
The company faced elevated cancellations of $900 million, but expects conditions to remain similar through the rest of the year and moderate in 2026. Despite this, ICON is focused on executing its strategy, prioritizing top-line growth, cost management, and technological innovation. The company is working to offset gross margin pressure through cost management, leveraging technology, and adjusting its resourcing to demand. As noted by the management, "the company is closer to the end of the process of working through cancelations than the beginning."
The industry environment seems to be improving, with increasing clarity on regulatory and trade issues. However, the competitive pricing environment remains a challenge, particularly in large pharma. The company is focused on winning through superior capabilities, expertise, and solution design, rather than cutting prices. ICON is also seeing heightened competitive activity among its competitors, driven by upstream dynamics impacting customers.
ICON's guidance range for full-year revenue is $8.05 billion to $8.1 billion, and adjusted EPS is $13 to $13.20. The company expects to provide guidance on its margin outlook for next year in January or February. Analysts estimate next year's revenue growth at 1.2%. The company is investing in automation and AI to drive efficiency and offset pricing pressure, with expectations that these efficiency savings will begin to flow through in 2026 and 2027.
With a ROE of 6.32% and an ROIC of 6.87%, ICON's return metrics indicate a stable performance. The company's Free Cash Flow Yield is 7.3%, which is relatively attractive. The Net Debt / EBITDA ratio is 0.17, indicating a healthy debt position. Overall, ICON's valuation metrics suggest a stable outlook, with some potential for growth.
ICON Survey Reveals Increasing Clinical Trial Startup Delays, Underscoring Need for Human-Centred Site Activation Solutions
Dec -02
ICON Public Limited Company (ICLR) Presents at Jefferies London Healthcare Conference 2025 Transcript
Nov -20
Artisan Partners Limited Partnership Buys 2,893,946 Shares of Icon Plc $ICLR
Nov -19
Allworth Financial LP Grows Stake in Icon Plc $ICLR
Nov -19
Diamond Hill International Strategy Q3 2025 Portfolio Activity
Nov -17
Larry Robbins Reduces Stake in Tenet Healthcare Corp by 20.69%, Impacting Portfolio by -2.99%
Nov -14
Brandes Investment Partners, LP Significantly Reduces Vanguard Value ETF by 99.61%
Nov -14
AN ICON HEADS TO THE LONE STAR STATE: ROYAL CARIBBEAN ANNOUNCES BOLD 2027-28 VACATIONS FROM TEXAS, CALIFORNIA AND THE NORTHEAST
Nov -12
Growing demand for outsourcing in clinical development, ICON's expertise in central laboratory services, and increasing adoption of precision medicine drive the growth of ICON's Medical Labs & Research segment.
ICON provides clinical research operations services to pharmaceutical, biotechnology, and medical device companies, including site management, patient recruitment, and data management.
ICON offers laboratory services, including bioanalytical testing, biomarker development, and central laboratory services, to support clinical trials and drug development.
ICON provides medical imaging services, including image acquisition, analysis, and interpretation, to support clinical trials and drug development.
ICON offers regulatory consulting services, including regulatory strategy, submission, and compliance, to support pharmaceutical, biotechnology, and medical device companies.
ICON provides functional service provider solutions, including customized outsourcing solutions, to support pharmaceutical, biotechnology, and medical device companies.
ICON provides innovative medicines and early development services, including translational medicine, early phase clinical trials, and proof-of-concept studies.
The threat of substitutes for ICON Public Limited Company is medium due to the presence of alternative products and services in the market.
The bargaining power of customers for ICON Public Limited Company is high due to the availability of alternative products and services, and the ability of customers to switch to competitors.
The bargaining power of suppliers for ICON Public Limited Company is low due to the company's large scale of operations and its ability to negotiate with suppliers.
The threat of new entrants for ICON Public Limited Company is medium due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.
The intensity of rivalry for ICON Public Limited Company is high due to the presence of several competitors in the market, and the need to constantly innovate and differentiate to stay ahead.
| Value | |
|---|---|
| Debt Weight | 29.20% |
| Debt Cost | 8.71% |
| Equity Weight | 70.80% |
| Equity Cost | 9.85% |
| WACC | 9.51% |
| Leverage | 41.25% |
Value: 3.5
Growth: 4.2
Quality: 7.8
Yield: 7.5
Momentum: 5.5
Volatility: 9.3
1-Year Total Return ->
Value: 3.9
Growth: 2.2
Quality: 6.5
Yield: 6.9
Momentum: 7.5
Volatility: 7.3
1-Year Total Return ->
Value: 0.8
Growth: 5.8
Quality: 6.2
Yield: 3.1
Momentum: 8.0
Volatility: 7.0
1-Year Total Return ->
Value: 3.5
Growth: 8.8
Quality: 8.0
Yield: 5.0
Momentum: 0.0
Volatility: 1.3
1-Year Total Return ->
Value: 2.8
Growth: 4.3
Quality: 4.7
Yield: 1.2
Momentum: 4.0
Volatility: 7.7
1-Year Total Return ->
Value: 4.6
Growth: 7.3
Quality: 6.5
Yield: 0.0
Momentum: 0.5
Volatility: 2.0
1-Year Total Return ->