Monitor the upcoming resolution of the securities class action and any further restatements. The $500M bridge facility addresses July 2026 note maturity but increases leverage near-term. Watch next quarterly report for margin recovery or further deterioration; cost inflation and pricing pressure remain key risks.
Price Chart
Executive Summary
ICON's Q1 2026 6-K shows modest revenue growth of 0.9% but a steep 35% decline in net income to $104.8M and EPS drop from $2.00 to $1.37. Operating margin contracted to 8.5% from 11.3%, driven by direct cost inflation (76.5% of revenue vs 71.9% a year ago). Operating cash flow fell 38% to $167M. Subsequent events include a $500M bridge facility to refinance near-term debt and the disposal of Symphony Health Solutions, while the company remains under securities class action with material weaknesses in internal controls.
Key Facts
- Q1 2026 revenue $2,033,999, up 0.9% YoY, down 1.9% in constant currency
- Net income $104,751, down 35% from $160,812 in Q1 2025
- Diluted EPS $1.36 vs $1.99, a 31.7% decline
- Direct costs rose to 76.5% of revenue from 71.9%
- Operating income $173,734, down 23.5%
- Cash from operations $167M vs $268M, down 38%
- Debt covenant waivers obtained due to late filing of annual report
- Symphony Health Solutions disposed on May 8, 2026; ICON holds minority stake in HealthVerity at $0 carrying value
- Board changes: Kevin Egan and Jeff Elliott joined June 1, 2026; Steve Cutler resigned May 21, 2026
Financial Impact
Net income decline of $56M (-35%), operating margin compression of 280bps, operating cash flow decline of $101M
Risk Factors
- Ongoing securities class action alleging misleading statements
- Material weaknesses in internal controls over financial reporting
- High debt load with $500M 2026 notes and $750M 2027 notes maturing
- Revenue growth barely positive and negative in constant currency
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001628280-26-044957 |
| Document: icon-ex171guarantorschedul.htm | 0001628280-26-044957 |
| Document: 0001628280-26-044957-index-headers.html | 0001628280-26-044957 |
| Document: 0001628280-26-044957-index.html | 0001628280-26-044957 |
| Document: 0001628280-26-044957.txt | 0001628280-26-044957 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 20, 2026 6w ago | 6-K | $174.27 $169.68 | ▼ −2.63% | ▼ −2.63% | $162.05 (−7.01%) |
Aug 12, 2026 7w ago | Insider Cluster | $167.48 $169.31 | ▲ +1.09% | ▲ +2.84% | $162.05 (−3.24%) |
Aug 12, 2026 7w ago | Insider Cluster | $167.48 $169.31 | ▲ +1.09% | ▲ +2.84% | $162.05 (−3.24%) |
Aug 6, 2026 8w ago | 6-K | $161.17 $163.58 | ▲ +1.50% | ▲ +0.90% | $162.05 (+0.55%) |
Jul 30, 2026 9w ago | 6-K | $165.53 $169.72 | ▼ −2.53% | ▲ +1.43% | $162.05 (+2.10%) |
Jul 22, 2026 10w ago | 6-K | $167.28 $172.49 | ▲ +3.11% | ▲ +0.22% | $162.05 (−3.13%) |
Jun 23, 2026 14w ago | 6-K | $158.17 $167.28 | ▼ −5.76% | ▼ −3.83% | $162.05 (−2.45%) |
Jun 23, 2026 14w ago | 6-K | $158.17 $167.28 | ▲ +5.76% | ▲ +3.83% | $162.05 (+2.45%) |
Jun 17, 2026 15w ago | 6-K | $146.00 $170.00 | ▲ +16.44% | ▲ +15.91% | $162.05 (+10.99%) |
May 27, 2026 18w ago | 6-K | $136.80 $169.86 | ▼ −24.17% | ▼ −27.31% | $162.05 (−18.46%) |
US Market Status
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