Fortrea reported third quarter 2026 revenue of $691.5 million and adjusted EPS of $0.28, both exceeding analyst expectations. The results were driven by improved commercial execution and operational discipline, prompting management to raise full-year 2026 financial midpoints despite a material non-cash adjustment to the company's clinical backlog.
Key Highlights
- Revenue beat consensus at $691.5 million, reflecting strong progress in the company's return-to-growth strategy following its spin-off.
- Adjusted EBITDA reached $58.0 million, representing margin expansion supported by the Transform productivity program and a 1.12x quarterly book-to-bill ratio.
- Total clinical backlog was adjusted downward by $558 million to $7.3 billion following a detailed review of inactive trials and scope changes, falling short of the $7.8 billion investor target.