Medpace raises EPS outlook to $17.97–18.32, approves buyback authorization
Key Facts
Medpace raised its 2026 diluted earnings per share forecast to between $17.97 and $18.32, according to its third-quarter earnings presentation, as its board approved a new share repurchase authorization. The new earnings range represents year-over-year growth of between 17.6% and 19.9% under U.S. generally accepted accounting principles. The contract clinical research company had forecast earnings per share of between $17.25 and $17.95 for the same year in July, when it announced second-quarter results. The lower end of the updated estimates is therefore above the upper end of the previous range, with the company raising both ends of its annual earnings outlook. Medpace disclosed that the new authorization allows repurchases of up to $1.0 billion of common stock and replaces the previous authorization.
Medpace meanwhile narrowed its annual revenue forecast to between $2,835.0 million and $2,855.0 million in its third-quarter earnings presentation. The company expects that revenue to represent growth of between 12.0% and 12.8% in 2026 from the previous year. Its July estimates put annual revenue at between $2.805 billion and $2.885 billion, a wider range than the updated forecast. The revision raises the lower end of expected revenue and reduces the upper end, alongside an increase in the entire earnings per share range. The company said its outlook "does not reflect the potential impact of any additional share repurchases," keeping its published estimates separate from the potential effect of further purchases.
Medpace's third-quarter 2026 results showed revenue rising 8.5% year over year, according to the company's statement for the period. Revenue totaled $716.0 million, compared with $659.9 million in the third quarter of 2025. The company reported net income under generally accepted accounting principles of about $137.5 million during the third quarter. That equated to diluted earnings per share of $4.84, according to the figures in the earnings statement. The net profit margin rose to 19.2% from 16.8% in the corresponding period, reflecting an increase in the share of company revenue accounted for by profit as quarterly sales grew.
Medpace operates in contract clinical research, providing clinical development services to biotechnology, pharmaceutical and medical device companies, according to its description on its investor relations website. Its operations thus include serving companies in drug, technology and medical device development. On contracts, the company announced net new business of $873.4 million during the third quarter of 2026. Its backlog of contracted work yet to be performed stood at $3,167.2 million at the end of September, according to the quarterly earnings statement. This backlog represents the remaining work under the company's contracts at the end of the period, alongside its reported net new business during the quarter.
On liquidity, Medpace held cash and cash equivalents of $705.3 million on September 30, 2026, according to its third-quarter earnings statement. The company's operating activities generated cash flow of $216.6 million during the same quarter. The company's disclosure identified cash on hand as a source of funding for share repurchases it may carry out under the new authorization. However, it stated that the authorization "does not obligate" the company to buy a minimum number of shares, meaning its financial ceiling does not constitute a commitment to spend the authorized amount. The board also retains the authority to amend, suspend or terminate the authorization, under the terms set out in the disclosure.
In the market, Medpace shares closed at $662.48 in the October 21, 2026 session, according to EL7's closing share-price data. The company scheduled its third-quarter earnings call for October 22, 2026, according to the calendar published on its investor relations website. The calendar listed 9:00 a.m. U.S. Eastern Daylight Time as the time for the call. The new buyback authorization runs through December 31, 2028, according to the company's disclosure. This gives the company a period in which to carry out authorized purchases within the authorization's ceiling and terms.