The strong adjusted EPS beat and 1.15x book-to-bill signal improving operational momentum, but YoY revenue decline and negative free cash flow temper enthusiasm. Watch for Q2 2026 revenue growth inflection and margin expansion trajectory to confirm the turnaround narrative.
Price Chart
Executive Summary
Fortrea reported Q1 2026 adjusted EPS of $0.16, significantly above the $0.05 consensus, though GAAP EPS was -$0.25 due to non-cash items. Revenue of $636.5M slightly exceeded the $625.9M estimate but declined 2.3% YoY from $651.3M. The company affirmed full-year 2026 guidance for revenue of $2.55B-$2.65B and adjusted EBITDA of $190M-$220M, with a strong 1.15x book-to-bill ratio signaling improving demand.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $636.5M vs consensus $625.9M (beat) but down from $651.3M YoY (-2.3%)
- Adjusted diluted EPS $0.16 vs consensus $0.05 (beat) and vs $0.02 YoY
- GAAP net loss -$23.6M (-$0.25/diluted share) vs -$562.9M (-$6.25) YoY, which included a $488.8M goodwill impairment
- Adjusted EBITDA $47.0M vs $30.3M YoY, up 55%
- Book-to-bill ratio 1.15x, third consecutive quarter above 1.1x; backlog $7,846M
- Full-year 2026 guidance affirmed: revenue $2.55B-$2.65B, adjusted EBITDA $190M-$220M
- Operating cash flow -$17.0M; free cash flow -$25.0M in Q1
Financial Impact
Adjusted EPS beat consensus by $0.11 (220% surprise); revenue beat by $10.6M (1.7% surprise). Adjusted EBITDA improved $16.7M YoY.
Risk Factors
- Revenue still declining YoY (-2.3%) despite beat vs consensus
- Negative free cash flow of -$25.0M in Q1
- GAAP net loss persists; adjusted metrics mask underlying cash burn
- Full-year guidance maintained, not raised, despite strong Q1 beat
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3287436 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | Press Release | $23.63 | awaiting T+1 | — | $24.47 (+3.55%) |
Oct 22, 2026 4d ago | Press Release | $23.63 $23.83 | ▲ +0.85% | ▲ +0.14% | $24.47 (+3.55%) |
Oct 19, 2026 7d ago | Press Release | $22.78 $24.06 | ▲ +5.62% | ▲ +5.09% | $24.47 (+7.42%) |
Oct 5, 2026 22d ago | Press Release | $21.11 $20.78 | ▼ −1.56% | ▼ −2.11% | $24.47 (+15.92%) |
Sep 30, 2026 26d ago | 8-K | $19.40 $20.00 | ▲ +3.09% | ▲ +2.35% | $24.47 (+26.13%) |
Sep 10, 2026 6w ago | Press Release | $17.20 $17.41 | ▲ +1.22% | ▲ +1.67% | $24.47 (+42.27%) |
Sep 10, 2026 6w ago | 8-K | $17.02 $17.20 | ▲ +1.06% | ▲ +0.21% | $24.47 (+43.77%) |
Sep 2, 2026 7w ago | Press Release | $18.36 $18.62 | ▲ +1.42% | ▲ +0.37% | $24.47 (+33.28%) |
Aug 22, 2026 9w ago | Institutional Cluster | $18.31 $18.27 | ▼ −0.22% | ▼ −0.54% | $24.47 (+33.64%) |
Aug 7, 2026 11w ago | Insider Cluster | $18.99 $19.52 | ▲ +2.79% | ▲ +3.11% | $24.47 (+28.86%) |
US Market Status
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