# ICON Public Limited Company (ICLR) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/ICLR/thesis · /stocks/ICLR/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: ICLR
step: "04"
title: Financial Snapshot — 3-Year P&L Summary
created: 2026-05-29
---

### ICLR — Financial Snapshot (3-Year P&L Summary)

**Important:** All figures use restated numbers from the May 2026 20-F filing. Prior unrestated filings for FY 2023 and FY 2024 should not be relied upon (see Step 00 for restatement details).

#### Income Statement Summary (USD Millions)

| Metric | FY 2023 | FY 2024 | FY 2025 |
|--------|---------|---------|---------|
| **Revenue** | $8,055 | $8,189 | $8,251 |
| YoY Growth | +4.1% | +1.7% | -0.5%* |
| **Gross Profit** | $2,349 | $2,371 | $2,176 |
| Gross Margin | 29.2% | 29.0% | 26.4% |
| **Operating Income (GAAP)** | $905 | $1,032 | $443 |
| Operating Margin | 11.2% | 12.6% | 5.4% |
| **EBITDA** | $1,491 | $1,521 | $826 |
| EBITDA Margin | 18.5% | 18.6% | 10.0% |
| **Net Income (GAAP)** | $554 | $739 | $229 |
| Net Margin | 6.9% | 9.0% | 2.8% |
| **EPS Diluted (GAAP)** | $6.70 | $8.90 | $2.90 |

*FY 2025 revenue vs. FY 2024 restated: -$62M or -0.8% (slight organic decline)

#### Margin Walk: FY 2023–FY 2025

**Gross Margin Compression (29.2% → 26.4%):**
- Labor cost inflation (scientists, project managers, CRAs) has outpaced revenue growth
- Softer book-to-bill means more idle capacity being absorbed
- FSP mix shift (lower gross margin) growing relative to FSO

**Operating Margin Compression (11.2% → 5.4%):**
- Q3 2025 included one-time charges related to the accounting restatement investigation: legal fees, external audit costs, and the reversal of improperly recognized revenue from prior periods
- FY 2025 operating income of $443M is significantly impaired by these non-recurring items
- Underlying adjusted operating margin (excluding restatement charges) was approximately 11–12% in FY 2025

**EBITDA Margin Compression (18.5% → 10.0%):**
- Same drivers as operating margin; Q3 2025 restatement charges disproportionately impacted EBITDA
- Adjusted EBITDA margin for FY 2025 is estimated at ~17–18% (company guidance for adj. EPS implies ~$10–11 adj. EPS on ~76.5M shares = ~$765–840M adj. net income vs. GAAP of $229M)

#### Adjusted EPS vs. GAAP EPS

The disconnect between GAAP and adjusted earnings is substantial due to:
1. **PRA acquisition intangible amortization:** ~$400–450M per year in non-cash amortization from customer relationships and technology acquired in the $12B PRA deal (5–15 year amortization lives)
2. **Restatement-related charges (FY 2025):** Legal, audit, and remediation costs booked in Q3 2025
3. **Stock-based compensation:** FY 2025 SBC was anomalously high at $102M (vs. $46–70M in prior years) — partly related to CEO transition equity grants and restatement-period awards

| Metric | FY 2023 | FY 2024 | FY 2025 |
|--------|---------|---------|---------|
| GAAP EPS Diluted | $6.70 | $8.90 | $2.90 |
| Adjusted EPS Diluted | ~$14.50 | ~$15.50 | ~$12.73 |
| Intangible Amortization (est., post-tax) | ~$5.50/sh | ~$5.50/sh | ~$5.50/sh |
| Restatement Charges (est., post-tax) | — | — | ~$4.00/sh |
| SBC Premium (est., post-tax) | — | — | ~$0.80/sh |

#### Income Statement Composition (FY 2025)

| Item | Amount | % Revenue |
|------|--------|-----------|
| Revenue | $8,251M | 100.0% |
| Cost of Revenue | $6,075M | 73.6% |
| **Gross Profit** | **$2,176M** | **26.4%** |
| R&D (clinical ops investment) | Minimal — included in CoR | — |
| SG&A | ~$1,300M | ~15.8% |
| Amortization of Intangibles | ~$415M | ~5.0% |
| Other Operating | ~$18M | ~0.2% |
| **Operating Income** | **$443M** | **5.4%** |
| Interest Expense (net) | ~$140M | ~1.7% |
| Tax Expense | ~$75M | ~0.9% |
| **Net Income** | **$229M** | **2.8%** |

*Amortization estimate based on $3.2–3.6B intangibles at weighted ~10–12 year life*

#### 5-Year Financial Summary

| Metric | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|--------|---------|---------|---------|---------|---------|---------|
| Revenue ($M) | 2,797 | 5,481 | 7,741 | 8,055 | 8,189 | 8,251 |
| Op. Income ($M) | 392 | 379 | 795 | 905 | 1,032 | 443 |
| Op. Margin | 14.0% | 6.9% | 10.3% | 11.2% | 12.6% | 5.4% |
| Net Income ($M) | 332 | 153 | 502 | 554 | 739 | 229 |
| EPS Diluted | $6.29 | $2.25 | $6.13 | $6.70 | $8.90 | $2.90 |
| Free Cash Flow ($M) | — | 735 | 421 | 1,020 | 1,119 | 862 |

**Key Observations:**
1. Revenue 3x from FY 2020 to FY 2025, driven almost entirely by PRA acquisition (July 2021)
2. Organic growth has slowed materially: FY 2022 (+41% incl. full-year PRA) → FY 2023 (+4%) → FY 2024 (+2%) → FY 2025 (-0.5%)
3. Operating margin recovery from PRA integration: 6.9% (FY 2021) → 12.6% (FY 2024) then disrupted by FY 2025 restatement
4. Free cash flow is strong and has grown consistently, partially obscured by GAAP earnings volatility
5. FY 2025 GAAP metrics are heavily distorted by restatement charges; adjusted metrics are meaningfully better

#### Tax Profile

ICON benefits from Irish domicile:
- **Irish Corporate Tax Rate:** 12.5% standard; effective rate closer to 14–16% due to mix of territories
- **OECD Pillar Two:** 15% global minimum tax applies to ICON from 2024 — modest incremental impact
- **No US tax repatriation exposure:** Not a US-domiciled company
- **Tax rate guidance:** ~14–16% effective tax rate on adjusted basis

#### Forward Estimates

| Metric | FY 2026E (Company Guide) | FY 2026E (Consensus) | FY 2027E (Consensus) |
|--------|--------------------------|---------------------|---------------------|
| Revenue | $7,850M–$8,150M | $8,030M | $8,260M |
| Adj. EPS | $10.00–$11.00 | $11.33 | $12.40 |
| GAAP EPS | — | $11.54 | $12.40 |

*Note: FY 2026E GAAP EPS consensus of $11.54 is expected to exceed FY 2025A GAAP EPS of $2.90 primarily because FY 2025 included large non-recurring restatement charges concentrated in Q3 2025. GAAP and adjusted EPS are expected to converge in FY 2026 as one-time charges normalize.*

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/ICLR/fundamental

## Navigation

- Overview: /stocks/ICLR
- Financials (this page): /stocks/ICLR/financials
- Thesis: /stocks/ICLR/thesis
- Investment Memo: /stocks/ICLR/memo
- Coverage universe: /stocks