Fortrea Reports Revenue of $691.5 Million and Raises Midpoint of 2026 Guidance
Key Facts
Fortrea, listed on Nasdaq under the ticker FTRE, reported on October 29 results for the third quarter ended September 30, 2026, with revenue of $691.5 million. The results showed U.S. GAAP net income of $0.6 million and diluted earnings of $0.01 per share. Adjusted net income was $27.9 million, or $0.28 per diluted share. The announcement followed the company’s October 5 statement that it would release results before the market opened on October 29. The results included a backlog review and an update to annual guidance, while the company said the backlog adjustment does not affect its 2026 guidance.
Revenue fell from $701.3 million in the third quarter of 2025 to $691.5 million in the corresponding period of 2026. But profitability shifted from a U.S. GAAP loss of $15.9 million, or $0.17 per share, a year earlier to income of $0.6 million and earnings of $0.01 per share. On an adjusted basis, net income rose from $11.7 million to $27.9 million, while adjusted earnings per share increased from $0.12 to $0.28. The results therefore combined a year-over-year decline in revenue with improved reported and adjusted profitability.
Adjusted EBITDA was $58.0 million for the quarter, while cash generated from operations reached $60.8 million and free cash flow was $52.5 million. The book-to-bill ratio was 1.12 times. Chief Executive Anshul Thakral said the results reflect “improved commercial execution, continued operational improvements and financial discipline.” He added that “continued bookings momentum is building a foundation for growth.” The company thus linked its quarterly performance to improved commercial execution, operations and financial discipline, alongside continued bookings.
Fortrea reduced its backlog by $558 million after a contract review to incorporate the cumulative effect of estimates for scope of work and study execution requirements, including inactive trials. Backlog after the adjustment was $7,316 million as of September 30, 2026. The company said the adjustment does not affect historical financial results, previous or current 2026 guidance, or near-term revenue estimates. Backlog had been $7,800 million as of June 30, according to second-quarter results. The company also reported a quarterly book-to-bill ratio of 1.06 times and a trailing twelve-month ratio of 1.12 times.
The company raised the midpoints of its annual revenue and adjusted EBITDA forecasts while narrowing both ranges. It now expects revenue of between $2,665 million and $2,690 million, and adjusted EBITDA of between $210 million and $218 million in fiscal 2026. In July, it had raised its forecasts to a range of $2,620 million to $2,690 million for revenue and $205 million to $220 million for adjusted EBITDA. The new guidance followed that revision, raising the midpoints of both ranges and narrowing the distance between the endpoints of each.
In the second quarter of 2026, Fortrea reported revenue of $678.2 million, compared with $710.3 million in the second quarter of 2025, and a U.S. GAAP loss of $13.2 million. Adjusted net income was then $22.7 million, with adjusted earnings per share of $0.23, compared with $17.6 million and $0.19 per share a year earlier. Adjusted EBITDA for that quarter was $58.7 million, compared with $54.9 million in the corresponding period. For its upcoming schedule, the investor relations page listed a healthcare conference on November 17 and two other conferences on December 1 and 2, 2026.