Fortrea (NASDAQ:FTRE) Announces Earnings Results, Misses Estimates By $0.07 EPS

Fortrea (NASDAQ:FTRE) announced its earnings results on Thursday. The company reported $0.09 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.07), FiscalAI reports. Fortrea had a negative net margin of 36.77% and a positive return on equity of 5.64%. The business had revenue of $660.50 million for the quarter, compared to analysts’ expectations of $665.22 million.

Here are the key takeaways from Fortrea’s conference call:

• Fortrea delivered Q4 and full‑year 2025 results in line with guidance, reporting full‑year revenue of $2,723.4 million and adjusted EBITDA of $189.9 million, which management says validates their operating execution.
• The company generated positive Q4 and full‑year operating and free cash flow, improved DSO to 16 days, repaid approximately $76 million of senior secured notes in Q4, and finished the quarter with available liquidity in excess of $600 million.
• Fortrea exceeded its cost‑savings goals, delivering roughly $153 million in gross and $93 million in net savings for 2025 and is targeting incremental $70–$80 million gross (and $40–$50M net) savings in 2026 to help margin recovery.
• Commercial momentum improved late in 2025 with Q4 book‑to‑bill of 1.14x (TTM 1.02x), notable new wins including a long‑term clinical pharmacology partnership with a top‑5 pharma, and increased biotech RFP flow and full‑service opportunity mix.
• Near‑term risks remain from continued FSP headwinds and variability in pass‑through revenue (driven by episodic large clinical pharmacology studies), plus customer concentration (top 10 customers = 56.8% of 2025 revenue), which could pressure revenue and margins.

Fortrea Stock Up 2.2%

Shares of NASDAQ:FTRE traded up $0.24 during mid-day trading on Friday, hitting $11.04. 646,107 shares of the company traded hands, compared to its average volume of 1,690,368. The firm has a market cap of $1.02 billion, a P/E ratio of -0.98, a PEG ratio of 0.30 and a beta of 1.59. The firm’s 50 day simple moving average is $15.28 and its 200 day simple moving average is $12.28. The company has a debt-to-equity ratio of 1.81, a quick ratio of 1.00 and a current ratio of 1.00. Fortrea has a 52-week low of $3.97 and a 52-week high of $18.67.

Analyst Ratings Changes

Several research firms have weighed in on FTRE. Barclays decreased their target price on shares of Fortrea from $15.00 to $12.00 and set an “equal weight” rating on the stock in a report on Friday. Robert W. Baird cut their target price on shares of Fortrea from $19.00 to $16.00 and set an “outperform” rating on the stock in a research note on Friday. Citigroup raised Fortrea from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $12.00 to $21.00 in a report on Thursday, December 11th. TD Cowen upped their target price on shares of Fortrea from $7.00 to $15.00 and gave the company a “hold” rating in a report on Thursday, January 22nd. Finally, Truist Financial set a $22.00 price objective on Fortrea and gave the company a “buy” rating in a report on Thursday, January 8th. Four research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $16.15.

Hedge Funds Weigh In On Fortrea

Several large investors have recently modified their holdings of the stock. AQR Capital Management LLC grew its stake in Fortrea by 494.8% during the 2nd quarter. AQR Capital Management LLC now owns 6,515,124 shares of the company’s stock worth $31,729,000 after buying an additional 5,419,842 shares during the last quarter. State Street Corp lifted its holdings in shares of Fortrea by 1.0% in the fourth quarter. State Street Corp now owns 4,110,899 shares of the company’s stock valued at $70,913,000 after buying an additional 39,777 shares during the period. Charles Schwab Investment Management Inc. grew its position in Fortrea by 21.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,219,029 shares of the company’s stock worth $55,528,000 after buying an additional 565,891 shares during the last quarter. Deutsche Bank AG lifted its stake in Fortrea by 0.3% during the fourth quarter. Deutsche Bank AG now owns 2,556,193 shares of the company’s stock valued at $44,094,000 after buying an additional 7,685 shares in the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of Fortrea by 9.4% in the fourth quarter. Geode Capital Management LLC now owns 2,278,934 shares of the company’s stock worth $39,318,000 after buying an additional 196,759 shares during the period.

More Fortrea News

Here are the key news stories impacting Fortrea this week:

• Positive Sentiment: Company reported that full‑year revenue and adjusted EBITDA were in line with targets and that full‑year cost savings exceeded previously communicated targets, which supports margin recovery prospects. Fortrea Reports Fourth Quarter and Full-Year 2025 Results; Issues Full-Year 2026 Guidance
• Positive Sentiment: Robert W. Baird kept an “outperform” rating and set a $16 price target (down from $19), which still implies meaningful upside (~51% from current levels) and signals at least one major shop remains constructive. Baird price target note
• Neutral Sentiment: Full Q4 earnings call and multiple transcripts are available for investors to review management’s commentary and outlook in detail (useful for assessing sales cadence, client demand and margin trajectory). Q4 2025 earnings call transcript
• Negative Sentiment: Reported Q4 results missed consensus — reported EPS materially missed some street figures (widely reported misses; multiple transcripts and summaries show the quarter fell short) and revenue of ~$660.5M trailed estimates (~$665M), weighing on near‑term sentiment. FTRE Q4 earnings and revenues lag estimates (Zacks)
• Negative Sentiment: Barclays cut its price target to $12 and moved to an “equal weight” rating, signaling reduced conviction and applying downward pressure on the stock. Barclays price target cut
• Negative Sentiment: FY‑2026 revenue guidance was given in a $2.6B–$2.7B range that sits at or slightly below consensus, which tempers near‑term growth expectations. FY2026 guidance details

About Fortrea

Fortrea, Inc is a global contract development and manufacturing organization (CDMO) that provides integrated solutions for pharmaceutical and biotechnology companies. Established as a spin-off from Thermo Fisher Scientific’s Pharma Services business in October 2023, Fortrea leverages a legacy of scientific expertise and manufacturing scale to support drug development from early-stage research through commercial production. The company’s comprehensive offerings address the complex needs of both small-molecule and biologics programs, making it a single source for clients seeking to accelerate timelines and manage costs.

Fortrea’s core services encompass analytical and formulation development, process optimization, clinical and commercial manufacturing, and packaging services.