Medpace revenue rises 17.2% in second quarter; July outlook precedes October results
Key Facts
Medpace's revenue rose 17.2% to $707.3 million in the second quarter of 2026, according to results the company announced on July 22 alongside an increase in its full-year financial forecasts. Revenue in the corresponding period of 2025 was about $603.3 million, according to the earnings release, while the updated forecasts covered revenue, earnings and earnings per share. The earnings presentation showed net income rose 34.5% to $121.4 million during the quarter, from $90.3 million in the corresponding period a year earlier. Net income growth therefore outpaced revenue growth over the same period, according to the figures the company reported. Diluted earnings per share rose to $4.25 in the second quarter from $3.10 a year earlier.
Medpace provides clinical development services to biotechnology, pharmaceutical and medical device companies, according to the company profile on its investor relations website. The company attributed second-quarter revenue growth primarily to activity in therapeutic areas including metabolic disease, oncology, central nervous system disorders, and antiviral and anti-infective treatments. It said in its quarterly report that the increase came from "growth in the metabolic, oncology, central nervous system, antiviral and anti-infective therapeutic areas." In terms of contract execution, the backlog conversion rate was 24.1% in the second quarter of 2026, according to the earnings presentation. The presentation compared that rate with 21.2% in the second quarter of 2025, alongside the company's annual revenue growth.
Medpace's backlog stood at $3,014.2 million at the end of June 2026, according to the company's quarterly report. The comparable balance was $2,873.6 million at the end of June a year earlier, putting contracted business above its year-earlier level. During the second quarter, net new business awards totaled $795.7 million, the amount the company reported after accounting for cancellations. Medpace cautions in its disclosure that backlog and new business awards may not be reliable indicators of revenue in future periods. The company links that caveat to the possibility of contract cancellations and changes in project scope and execution timing, factors that affect the conversion of contracted business into revenue.
In its July update, Medpace set its 2026 revenue forecast at between $2.805 billion and $2.885 billion, according to the second-quarter earnings release. Its April forecast, published with first-quarter results, had put annual revenue at between $2.755 billion and $2.855 billion, before both ends of the range were raised. The company also forecast annual earnings before interest, taxes, depreciation and amortization of between $618.0 million and $642.0 million under the updated estimates. It compared those estimates with a previous range of $605.0 million to $635.0 million in the first-quarter earnings release. It set its forecast for full-year diluted earnings per share under generally accepted accounting principles at between $17.25 and $17.95, compared with a previous range of $16.68 to $17.50.
In terms of operating profitability, the earnings before interest, taxes, depreciation and amortization margin was 21.7% in the second quarter of 2026, according to the earnings presentation. The comparable margin was 21.6% in the same period a year earlier, leaving the change in this measure limited compared with net income growth. On the balance sheet, cash and cash equivalents totaled $502.7 million at the end of June, according to the quarterly report filed by the company. The earnings presentation showed that Medpace spent $294.7 million on share repurchases during the second quarter of the year. At the end of June, $527.0 million remained under the share repurchase authorization, according to the company's quarterly disclosure on the buyback program.
The next event on Medpace's disclosure calendar is its third-quarter 2026 results, which the company scheduled for October 21. In its earnings date announcement, it said the figures would be released after the market close on Wednesday, according to the schedule announced to investors. This follows the second-quarter results and annual forecast update announced in July, while the forthcoming disclosure covers the third quarter. The company scheduled its earnings conference call for Thursday, October 22, 2026, according to the same announcement on its investor relations website. The call is scheduled to begin at 9:00 a.m. U.S. Eastern time to discuss results for the period, which will be released after the market close the previous day.