The restatement, material weaknesses, and downward revision to backlog methodology create significant uncertainty around ICON's reported financials and future revenue visibility. FY2026 guidance implies further adjusted EPS contraction, and the goodwill impairment signals structural issues in the Data Solutions unit. Monitor the May 28 conference call for details on remediation timeline and whether the Nasdaq deficiency notice (from the delayed 20-F) is resolved. The stock repurchase program provides a floor but does not offset fundamental headwinds.
Price Chart
Executive Summary
ICON plc filed Q4/FY2025 results alongside the conclusion of an Audit Committee investigation that found revenue overstatements of $65.3M (FY2023) and $92.7M (FY2024), leading to a restatement and disclosure of material weaknesses in internal controls. FY2025 GAAP diluted EPS fell 67.4% YoY to $2.90, adjusted diluted EPS fell 6.3% to $12.53, and adjusted EBITDA declined 8.4% to $1,530.7M; FY2026 guidance calls for revenue of $7,850-$8,150M and adjusted EPS of $10.00-$11.00, implying further contraction. The company also recorded a $364.2M goodwill impairment and a $101M impairment of non-financial assets, and revised its backlog methodology downward by $3.9B.
Key Facts
- FY2025 GAAP diluted EPS of $2.90 vs $8.90 in FY2024, a decline of 67.4%
- FY2025 adjusted diluted EPS of $12.53 vs $13.37 in FY2024, a decline of 6.3%
- FY2025 adjusted EBITDA of $1,530.7M vs $1,670.4M in FY2024, a decline of 8.4%
- FY2025 revenue of $8,251.3M, up 0.8% YoY (0.1% constant currency)
- Q4 2025 GAAP diluted EPS of $1.93 vs $3.58 in Q4 2024, a decline of 46.1%
- Revenue restated downward by $65.3M for FY2023 (0.8%) and $92.7M for FY2024 (1.1%)
- Material weaknesses in internal control over financial reporting identified
- Goodwill impairment of $364.2M and impairment of non-financial assets of $101M recorded in FY2025
- Backlog methodology revised, reducing reported backlog by $3.9B to $21.1B as of Oct 1, 2025
- FY2026 guidance: revenue $7,850-$8,150M, adjusted diluted EPS $10.00-$11.00
- $750M of stock repurchased in FY2025 at avg price of $167/share
- Net debt of $2.8B with net debt to adjusted EBITDA ratio of 1.8x
- Free cash flow of $862.0M for FY2025
- Board additions: Kevin Egan (former PwC Ireland audit leader) and Jeff Elliott (former CFO of Exact Sciences)
Financial Impact
FY2025 GAAP net income fell to $229.3M from $739.1M in FY2024; adjusted net income fell to $989.8M from $1,110.2M. Revenue restated down by $158M cumulatively over FY2023-2024. FY2026 guidance midpoint of $8,000M revenue and $10.50 adjusted EPS implies continued year-over-year decline from FY2025 levels.
Risk Factors
- Failure to remediate material weaknesses could lead to continued restatement risk or SEC enforcement action
- FY2026 guidance midpoint implies revenue decline from FY2025 actuals, suggesting organic contraction
- Backlog methodology change reduces visibility into future revenue conversion
- Nasdaq deficiency notice from delayed 20-F filing creates listing risk
- Goodwill and asset impairments suggest potential further write-downs in Data Solutions
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001628280-26-038510 |
| Document: iconplc6kq425.htm | 0001628280-26-038510 |
| Document: 0001628280-26-038510-index-headers.html | 0001628280-26-038510 |
| Document: 0001628280-26-038510-index.html | 0001628280-26-038510 |
| Document: 0001628280-26-038510.txt | 0001628280-26-038510 |
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%) |
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