Fortrea (NASDAQ:FTRE) Issues Earnings Results, Beats Expectations By $0.05 EPS

Fortrea (NASDAQ:FTRE) posted its quarterly earnings results on Wednesday. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.05, FiscalAI reports. Fortrea had a negative net margin of 16.50% and a positive return on equity of 9.51%. The firm had revenue of $678.20 million for the quarter, compared to analyst estimates of $647.57 million.

Here are the key takeaways from Fortrea’s conference call:

• Full-year guidance was raised, with 2026 revenue now expected at $2.62 billion–$2.69 billion and adjusted EBITDA at $205 million–$220 million, reflecting solid first-half execution and improving backlog mix.
• Commercial momentum continued: second-quarter net new business was $720.4 million, book-to-bill was 1.06x, and trailing 12-month book-to-bill reached 1.12x. First-half awards rose 19% year over year, driven particularly by biotech customers.
• Second-quarter adjusted EBITDA increased to $58.7 million from $54.9 million despite revenue declining 4.5% to $678.2 million, supported by cost savings and operational efficiencies. The company delivered $19 million of net cost savings year to date.
• Cash generation and the balance sheet improved, with quarterly free cash flow of $19.9 million, no revolver borrowings during the first half, more than $500 million of available liquidity, and approximately 35% of original debt repaid since the spin-off.
• New CFO Jason Knoblauch is unable to serve in the role while an employment restrictive-covenant proceeding involving his former employer is ongoing; board member David Smith is serving as interim CFO, creating an executive leadership transition and related uncertainty.

Fortrea Stock Down 4.8%

Fortrea stock traded down $0.97 during mid-day trading on Thursday, hitting $19.43. The company’s stock had a trading volume of 626,763 shares, compared to its average volume of 1,509,363. The firm’s 50 day moving average is $16.81 and its 200 day moving average is $13.79. The company has a market cap of $1.84 billion, a PE ratio of -3.97, a price-to-earnings-growth ratio of 0.63 and a beta of 2.03. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.95 and a quick ratio of 0.95. Fortrea has a 52-week low of $5.26 and a 52-week high of $21.39.

Key Fortrea News

Here are the key news stories impacting Fortrea this week:

• Positive Sentiment: Fortrea reported second-quarter 2026 adjusted earnings of $0.23 per share, exceeding the $0.18 analyst consensus and rising from $0.19 a year earlier. Revenue of $678.2 million also surpassed expectations of $647.6 million. Fortrea Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company increased its full-year 2026 revenue outlook to $2.62 billion-$2.69 billion and highlighted four consecutive quarters of commercial, operational, and financial execution. The optimistic outlook supports the bullish case for FTRE. Fortrea Reports Second Quarter 2026 Results
• Positive Sentiment: Truist Financial raised its Fortrea price target from $19 to $26 and upgraded the shares to “Buy,” implying substantial upside from recent trading levels. Benzinga Fortrea Price Target Update
• Neutral Sentiment: Fortrea appointed director David Smith as interim chief financial officer. The transition may provide continuity, but investors will likely seek clarity on the timing and process for selecting a permanent CFO. Fortrea Names Interim CFO Amid Ongoing Legal Dispute
• Negative Sentiment: The interim CFO appointment is occurring amid the Madlock covenant proceeding and an ongoing legal dispute, creating uncertainty around Fortrea’s financial governance, obligations, and execution. That risk may be offsetting the favorable earnings surprise and guidance increase. Fortrea Forecasts Revenue While Naming Interim CFO

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the company. Truist Financial lifted their target price on Fortrea from $19.00 to $26.00 and gave the stock a “buy” rating in a report on Thursday. Citigroup upped their target price on Fortrea from $16.00 to $20.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. TD Cowen reissued a “buy” rating on shares of Fortrea in a research note on Wednesday, May 6th. Wall Street Zen downgraded Fortrea from a “buy” rating to a “hold” rating in a report on Tuesday, July 21st. Finally, Zacks Research raised shares of Fortrea from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 6th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $19.75.

Hedge Funds Weigh In On Fortrea

Several institutional investors and hedge funds have recently bought and sold shares of the business. Royal Bank of Canada lifted its position in shares of Fortrea by 48.9% in the first quarter. Royal Bank of Canada now owns 121,707 shares of the company’s stock worth $920,000 after purchasing an additional 39,944 shares in the last quarter. Caxton Associates LLP purchased a new position in Fortrea during the first quarter valued at approximately $196,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Fortrea by 10.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 282,780 shares of the company’s stock valued at $2,135,000 after purchasing an additional 27,746 shares in the last quarter. Focus Partners Wealth acquired a new position in Fortrea in the 1st quarter valued at approximately $80,000. Finally, Acadian Asset Management LLC acquired a new position in Fortrea in the 1st quarter valued at approximately $65,000.

About Fortrea

Fortrea, Inc is a global contract development and manufacturing organization (CDMO) that provides integrated solutions for pharmaceutical and biotechnology companies. Established as a spin-off from Thermo Fisher Scientific’s Pharma Services business in October 2023, Fortrea leverages a legacy of scientific expertise and manufacturing scale to support drug development from early-stage research through commercial production. The company’s comprehensive offerings address the complex needs of both small-molecule and biologics programs, making it a single source for clients seeking to accelerate timelines and manage costs.

Fortrea’s core services encompass analytical and formulation development, process optimization, clinical and commercial manufacturing, and packaging services.