ICLR: Strong bookings and backlog, but lower YoY revenue and adjusted EBITDA

What happened

ICLR reported Q3 net business wins of $3.15B and a backlog of $24.5B. Revenue and adjusted EBITDA both declined year over year. The company's FY2026 guidance calls for $8.1B–$8.2B in revenue and $10.35–$10.65 in adjusted diluted earnings per share.

Confirmed

Global impact / market context

Backlog is work already contracted but not yet billed, so a $24.5B figure suggests future revenue visibility. Still, falling revenue and adjusted EBITDA, a profit measure that strips out certain items, show current business is shrinking even as new wins accumulate, which can pressure the share price.

Analyst inference

Strong bookings alongside weaker current results creates a split picture for investors. The guidance implies future revenue and profit per share targets, so the market must judge whether new wins convert into billed revenue quickly enough to offset the year-over-year decline in sales and adjusted EBITDA.

Analyst inference

What to watch

1. FY2026 guidance targets $8.1B–$8.2B in revenue and $10.35–$10.65 in adjusted diluted EPS, which means earnings per share after excluding specified items. Confirmed
2. Watch whether the $24.5B backlog converts into billed revenue, since that conversion is what would turn strong bookings into reported sales and cash available to the company. Proposed
3. Track whether revenue and adjusted EBITDA return to growth, because continued declines would suggest new business wins are not yet offsetting softer demand in existing contracts. Analyst inference

Evidence

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