ICLR · ICON Public Limited Company

ICON's Q4 2025 results showed modest revenue growth of 2.5% year-over-year to $2.11 billion, driven by strong net bookings of $2.87 billion (book-to-bill 1.36). However, GAAP net income fell sharply to $149 million ($1.93 per share) from $295 million ($3.58 per share) in Q4 2024, primarily due to goodwill impairment of $364 million and impairment of non-financial assets of $101 million in Q3 2025. Adjusted net income of $195 million ($2.52 per share) also declined 39% year-over-year. For the full year, revenue rose 0.8% to $8.25 billion, while GAAP net income dropped 69% to $229 million due to the impairments. Adjusted net income fell 11% to $990 million ($12.53 per share). Adjusted EBITDA margin contracted to 18.6% from 20.4% in 2024. Management noted improving demand environment and strong bookings momentum. The company guided 2026 revenue of $7.85-$8.15 billion and adjusted EPS of $10.00-$11.00, reflecting continued headwinds. The Audit Committee investigation concluded that revenue was overstated by $65 million (0.8%) in 2023 and $93 million (1.1%) in 2024 due to improper revenue recognition and cost estimation errors. Material weaknesses in internal controls were identified, and a remediation plan is underway. Board changes include appointments of Kevin Egan and Jeff Elliott effective June 1, 2026, enhancing financial oversight. The company repurchased $750 million in stock during 2025 at an average price of $167 per share.