Gross margins have experienced structural erosion, contracting from 30.0% in 2023Q4 to 23.5% in 2026Q1 due to persistent labor inflation and service delivery costs.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 |
|---|
| Sales/Revenue | 8.25B | 8.28B | 8.12B | 7.74B | 5.48B | 2.8B | 2.81B | 2.6B | 1.76B | 1.67B | 1.57B | 1.5B | 1.34B | 1.12B | 945.73M | 900.04M | 887.61M | 865.25M | 630.72M | 455.6M | 346.2M | 326.66M | 296.92M | 225.72M | 156.56M | 116.16M | 80.77M | 55.8M |
| Revenue Growth % | -0.37% | 1.99% | 4.89% | 41.24% | 95.93% | -0.3% | 8.09% | 47.62% | 5.52% | 5.81% | 4.77% | 12.52% | 19.83% | 17.9% | 5.08% | 1.4% | 2.58% | 37.18% | 38.44% | 31.6% | 5.98% | 10.01% | 31.54% | 44.18% | 34.77% | 43.82% | 44.74% | - |
| Cost of Goods Sold | 6.08B | 5.85B | 5.72B | 5.53B | 3.97B | 1.99B | 1.97B | 1.83B | 1.03B | 961.33M | 908.98M | 903.17M | 845.41M | 718.13M | 611.92M | 541.39M | 507.78M | 489.24M | 354.48M | 256.26M | 220.02M | 162.56M | 162.56M | 122.37M | 83.37M | 63.8M | 42.04M | 29.3M |
| COGS % of Revenue | 73.63% | 70.58% | 70.44% | 71.4% | 72.48% | 71.11% | 70.36% | 70.36% | 58.66% | 57.69% | 57.71% | 60.08% | 63.28% | 64.41% | 64.7% | 60.15% | 57.21% | 56.54% | 56.2% | 56.25% | 63.55% | 49.77% | 54.75% | 54.21% | 53.25% | 54.92% | 52.06% | 52.51% |
| Gross Profit | 2.18B | 2.44B | 2.4B | 2.21B | 1.51B | 808.03M | 831.7M | 769.49M | 726.96M | 705.15M | 666M | 600.15M | 490.64M | 396.87M | 333.81M | 358.66M | 379.83M | 376.01M | 276.24M | 199.33M | 126.18M | 134.36M | 134.36M | 103.35M | 73.18M | 52.36M | 38.72M | 26.5M |
| Gross Margin % | 26.37% | 29.42% | 29.56% | 28.6% | 27.52% | 28.89% | 29.64% | 29.64% | 41.34% | 42.31% | 42.29% | 39.92% | 36.72% | 35.59% | 35.3% | 39.85% | 42.79% | 43.46% | 43.8% | 43.75% | 36.45% | 41.13% | 45.25% | 45.79% | 46.75% | 45.08% | 47.94% | 47.49% |
| Gross Profit Growth % | -10.7% | 1.51% | 8.39% | 46.82% | 86.65% | -2.85% | 8.09% | 5.85% | 3.09% | 5.88% | 10.97% | 22.32% | 23.63% | 18.89% | -6.93% | -5.57% | 1.02% | 36.12% | 38.58% | 57.98% | -6.09% | 0% | 30% | 41.22% | 39.76% | 35.22% | 46.12% | - |
| Operating Expenses | 1.16B | 1.34B | 1.44B | 1.42B | 1.13B | 416.06M | 398.3M | 392.37M | 392.79M | 393.46M | 384.46M | 397.8M | 369.48M | 329.24M | 294.55M | 266.56M | 272.38M | 276.51M | 207M | 151.52M | 106.37M | 99.98M | 99.98M | 78.42M | 54.97M | 41.29M | 30.57M | 20M |
| OpEx % of Revenue | 14.1% | 16.16% | 17.78% | 18.33% | 20.61% | 14.87% | 14.2% | 15.12% | 22.34% | 23.61% | 24.41% | 26.46% | 27.65% | 29.53% | 31.14% | 29.62% | 30.69% | 31.96% | 32.82% | 33.26% | 30.73% | 30.61% | 33.67% | 34.74% | 35.11% | 35.54% | 37.86% | 35.84% |
| Selling, General & Admin | 780.14M | 728.35M | 776.36M | 778.75M | 585.33M | 341.69M | 336.75M | 325.79M | 323.74M | 325.73M | 326.79M | 336.46M | 313.93M | 280.78M | 255.86M | 232.69M | 230.91M | 248.78M | 187.99M | 136.57M | 0 | 88.81M | 88.81M | 71.12M | 48.95M | 36.31M | 27.35M | 18M |
| SG&A % of Revenue | 9.45% | 8.79% | 9.56% | 10.06% | 10.68% | 12.21% | 12% | 12.55% | 18.41% | 19.55% | 20.75% | 22.38% | 23.5% | 25.18% | 27.05% | 25.85% | 26.01% | 28.75% | 29.81% | 29.98% | - | 27.19% | 29.91% | 31.51% | 31.27% | 31.26% | 33.86% | 32.26% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 383M | 610.2M | 667.72M | 640.35M | 544.36M | 74.38M | 61.55M | 66.58M | 69.05M | 67.73M | 57.68M | 61.34M | 55.55M | 48.46M | 38.68M | 33.87M | 41.47M | 27.73M | 19.01M | 14.95M | 106.37M | 11.17M | 11.17M | 7.3M | 6.02M | 4.97M | 3.23M | 2M |
| Operating Income | 1.01B | 1.1B | 956.15M | 795.24M | 378.53M | 391.5M | 433.41M | 373.36M | 338.34M | 311.69M | 281.54M | 202.35M | 121.17M | 72.42M | 39.26M | 92.09M | 107.45M | 99.5M | 69.24M | 47.82M | 19.8M | 18.61M | 34.38M | 24.93M | 18.21M | 11.08M | 8.15M | 6.98M |
| Operating Margin % | 12.27% | 13.26% | 11.77% | 10.27% | 6.91% | 14% | 15.45% | 14.38% | 19.24% | 18.7% | 17.88% | 13.46% | 9.07% | 6.5% | 4.15% | 10.23% | 12.11% | 11.5% | 10.98% | 10.5% | 5.72% | 5.7% | 11.58% | 11.04% | 11.63% | 9.53% | 10.09% | 12.51% |
| Operating Income Growth % | -7.77% | 14.82% | 20.23% | 110.09% | -3.31% | -9.67% | 16.08% | 10.35% | 8.55% | 10.71% | 39.13% | 67% | 67.31% | 84.47% | -57.37% | -14.29% | 7.99% | 43.7% | 44.81% | 141.45% | 6.43% | -45.88% | 37.92% | 36.87% | 64.44% | 35.94% | 16.75% | - |
| EBITDA | 1.4B | 1.59B | 1.54B | 1.41B | 738.86M | 486.11M | 525.33M | 439.27M | 399.59M | 371.27M | 339.21M | 254.89M | 167.68M | 115.25M | 77.94M | 125.97M | 140.11M | 127.23M | 88.13M | 62.65M | 33.68M | 31.74M | 45.55M | 32.2M | 24.19M | 16.04M | 11.38M | 9.01M |
| EBITDA Margin % | 16.91% | 19.15% | 18.99% | 18.21% | 13.48% | 17.38% | 18.72% | 16.92% | 22.72% | 22.28% | 21.54% | 16.96% | 12.55% | 10.34% | 8.24% | 14% | 15.79% | 14.7% | 13.97% | 13.75% | 9.73% | 9.72% | 15.34% | 14.26% | 15.45% | 13.81% | 14.08% | 16.14% |
| EBITDA Growth % | -12.03% | 2.87% | 9.37% | 90.83% | 51.99% | -7.47% | 19.59% | 9.93% | 7.63% | 9.45% | 33.08% | 52.01% | 45.5% | 47.86% | -38.13% | -10.09% | 10.12% | 44.36% | 40.67% | 86.02% | 6.11% | -30.33% | 41.48% | 33.12% | 50.8% | 41% | 26.29% | - |
| D&A (Non-Cash Add-back) | 383M | 488.5M | 585.95M | 614.73M | 360.33M | 94.61M | 91.92M | 65.92M | 61.25M | 59.58M | 57.68M | 52.54M | 46.51M | 42.82M | 38.68M | 33.87M | 32.66M | 27.73M | 18.89M | 14.84M | 13.88M | 13.13M | 11.17M | 7.27M | 5.97M | 4.96M | 3.23M | 2.03M |
| EBIT | 440.57M | 1.08B | 935.49M | 797.58M | 379.1M | 394.22M | 440.26M | 378.12M | 340.68M | 319.85M | 281.54M | 211.15M | 122.15M | 68.27M | 30.64M | 93.86M | 108.2M | 102.39M | 69.24M | 47.82M | 14.2M | 18.61M | 34.38M | 24.93M | 18.21M | 11.08M | 8.15M | 6.98M |
| Net Interest Income | -181M | -228.63M | -331.69M | -227.39M | -181.85M | -10.29M | -6.42M | -8.74M | -10.28M | -11.52M | -2.69M | 366K | -302K | -796K | -448K | 629K | -2.78M | -1.22M | 2.74M | 3.64M | 2.18M | 0 | 288K | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 7.11M | 8.61M | 5.01M | 2.35M | 574K | 2.72M | 6.86M | 4.76M | 2.35M | 1.48M | 1.31M | 1.15M | 986K | 1.15M | 1.19M | 1.76M | 752K | 2.88M | 4.14M | 3.77M | 2.22M | 0 | 490K | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 188.11M | 237.24M | 336.7M | 229.73M | 182.42M | 13.02M | 13.28M | 13.5M | 12.63M | 13.01M | 3.99M | 785K | 1.29M | 1.95M | 1.64M | 1.13M | 3.53M | 4.11M | 1.4M | 125K | 37.71K | 281K | 202K | 0 | 0 | 0 | 575K | 0 |
| Other Income/Expense | -759.99M | -228.63M | -331.69M | -230.52M | -184.01M | -10.66M | -6.42M | -8.74M | -10.28M | -11.52M | -2.69M | 366K | -302K | -5.2M | -10.27M | 629K | -2.78M | -1.22M | 2.74M | 3.64M | 2.18M | 979K | 288K | 354K | 1.12M | 2.52M | 1.04M | 2.63M |
| Pretax Income | 252.47M | 869.18M | 624.08M | 564.72M | 194.52M | 380.84M | 426.99M | 368.38M | 327.67M | 300.17M | 278.85M | 202.72M | 120.86M | 67.22M | 29M | 92.72M | 104.67M | 98.28M | 71.98M | 51.46M | 21.98M | 19.59M | 34.67M | 25.28M | 19.33M | 13.6M | 9.19M | 9.61M |
| Pretax Margin % | 3.06% | 10.5% | 7.69% | 7.29% | 3.55% | 13.61% | 15.22% | 14.19% | 18.63% | 18.01% | 17.71% | 13.48% | 9.05% | 6.03% | 3.07% | 10.3% | 11.79% | 11.36% | 11.41% | 11.29% | 6.35% | 6% | 11.68% | 11.2% | 12.35% | 11.7% | 11.38% | 17.22% |
| Income Tax | 23.13M | 77.71M | 11.75M | 59.41M | 41.33M | 47.88M | 51.13M | 45.56M | 46.57M | 37.99M | 39.31M | 30.25M | 18.05M | 11.8M | 6.12M | 5.65M | 10.38M | 19.97M | 15.83M | 12.92M | 9.25M | 5.85M | 8.93M | 7M | 5.13M | 2.62M | 3.12M | 1.56M |
| Effective Tax Rate % | 9.16% | 8.94% | 1.88% | 10.52% | 21.25% | 12.57% | 11.98% | 12.37% | 14.21% | 12.66% | 14.1% | 14.92% | 14.94% | 17.56% | 21.09% | 6.1% | 9.91% | 20.32% | 21.99% | 25.12% | 42.08% | 29.88% | 25.75% | 27.69% | 26.54% | 19.25% | 33.97% | 16.2% |
| Net Income | 229.34M | 791.47M | 612.34M | 505.3M | 153.19M | 327.81M | 373.99M | 322.82M | 281.49M | 262.18M | 239.54M | 172.47M | 102.81M | 55.42M | 22.88M | 87.07M | 94.3M | 78.12M | 55.96M | 38.3M | 12.72M | 13.54M | 25.74M | 18.28M | 14.2M | 10.98M | 6.07M | 8.05M |
| Net Margin % | 2.78% | 9.56% | 7.54% | 6.53% | 2.79% | 11.72% | 13.33% | 12.44% | 16.01% | 15.73% | 15.21% | 11.47% | 7.7% | 4.97% | 2.42% | 9.67% | 10.62% | 9.03% | 8.87% | 8.41% | 3.67% | 4.15% | 8.67% | 8.1% | 9.07% | 9.45% | 7.51% | 14.43% |
| Net Income Growth % | -71.02% | 29.26% | 21.18% | 229.87% | -53.27% | -12.35% | 15.85% | 14.68% | 7.36% | 9.45% | 38.89% | 67.75% | 85.51% | 142.22% | -73.72% | -7.66% | 20.71% | 39.59% | 46.1% | 201.21% | -6.12% | -47.38% | 40.8% | 28.75% | 29.35% | 80.92% | -24.65% | - |
| Net Income (Continuing) | 229.34M | 791.47M | 612.34M | 505.3M | 153.19M | 332.96M | 375.86M | 322.66M | 281.49M | 262.18M | 239.54M | 172.47M | 102.81M | 55.42M | 22.88M | 87.07M | 94.3M | 78.31M | 55.96M | 38.53M | 12.73M | 13.54M | 25.74M | 18.28M | 14.2M | 10.98M | 6.07M | 8.05M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.31M | 1.12M | 894K | 884K | 0 | 0 | 0 | 120K | 0 | 0 |
| EPS (Diluted) | 2.90 | 9.53 | 7.40 | 6.13 | 2.25 | 6.24 | 6.79 | 5.90 | 5.13 | 4.65 | 3.97 | 2.73 | 1.65 | 0.92 | 0.37 | 1.44 | 1.57 | 1.30 | 1.88 | 1.33 | 0.22 | 0.96 | 1.88 | 1.50 | 1.16 | 0.92 | 0.27 | 0.68 |
| EPS Growth % | -69.57% | 28.78% | 20.72% | 172.44% | -63.94% | -8.1% | 15.08% | 15.01% | 10.32% | 17.13% | 45.42% | 65.45% | 79.35% | 148.65% | -74.31% | -8.28% | 20.77% | -30.85% | 41.35% | 504.55% | -77.08% | -48.94% | 25.33% | 29.31% | 26.09% | 240.74% | -60.29% | - |
| EPS (Basic) | 2.92 | 9.60 | 7.46 | 6.20 | 2.28 | 6.29 | 6.85 | 5.96 | 5.20 | 4.75 | 4.08 | 2.80 | 1.69 | 0.92 | 0.38 | 1.46 | 1.61 | 1.34 | 1.95 | 1.35 | 0.23 | 0.98 | 1.94 | 1.55 | 1.22 | 0.97 | 0.27 | 0.36 |
| Diluted Shares Outstanding | 78.97M | 83.03M | 82.72M | 82.47M | 68.07M | 53.28M | 54.33M | 54.74M | 54.87M | 56.41M | 60.29M | 63.13M | 62.25M | 60.68M | 61.07M | 60.64M | 59.9M | 60.22M | 29.75M | 28.86M | 28.37M | 13.7M | 13.7M | 12.18M | 12.24M | 11.94M | 22.88M | 11.92M |
| Basic Shares Outstanding | 78.42M | 82.48M | 82.1M | 81.53M | 67.11M | 52.86M | 53.86M | 54.12M | 54.13M | 55.25M | 58.75M | 61.5M | 60.91M | 59.97M | 60.38M | 59.72M | 58.64M | 58.25M | 28.71M | 28.31M | 28.05M | 13.27M | 13.27M | 11.81M | 11.66M | 11.29M | 22.17M | 21.01M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Margin compression from labor
According to the provided quarterly data, ICON's revenue growth has decelerated significantly, shifting from 5.7% in 2024Q1 to a 1.6% increase by 2026Q1, suggesting that the company is struggling to maintain momentum in a tightening clinical research environment for its core biotechnology client base.
The transition from mid-single-digit growth to near-flat performance indicates that the company's backlog conversion may be facing friction. Investors should monitor whether this trend reflects a broader cooling in R&D spending or specific challenges in executing complex Phase III trials.
As reported in the financial statements, ICON's gross margin has experienced a notable contraction, falling from 30.0% in 2023Q4 to 23.5% in 2026Q1, which highlights the increasing difficulty in managing pass-through costs and labor inflation within the current clinical trial service delivery model.
This margin compression suggests that the company's pricing power may be limited by competitive pressures or an unfavorable shift in project mix. The inability to maintain gross margins above 25% in recent quarters warrants further investigation into the sustainability of their current cost-plus pricing structure.
Based on the reported figures, ICON's operating margin has declined from 14.6% in 2024Q4 to 8.5% in 2026Q1, demonstrating a failure to achieve meaningful operating leverage as SG&A expenses remain sticky despite the lack of top-line expansion across the most recent fiscal periods.
The divergence between revenue stagnation and rising overhead costs suggests that the company is currently unable to scale its infrastructure efficiently. This trend may indicate that the integration of recent acquisitions is proving more resource-intensive than initially anticipated by the market.
Analysis of the income statement reveals that net income has become increasingly volatile, with EPS dropping from $3.16 in 2024Q4 to $1.36 in 2026Q1, partly influenced by fluctuating stock-based compensation expenses that reached $89.7 million in 2025Q4, distorting the underlying profitability of the firm.
The significant gap between operating income and net income suggests that non-operating items, including potential interest expenses or integration-related charges, are weighing heavily on the bottom line. Investors should be cautious of relying on headline EPS figures without adjusting for these recurring non-cash and one-time costs.
While management emphasizes the strength of the contract backlog, the recent stagnation in revenue growth suggests that the market may be overestimating the quality of these commitments, as evidenced by the potential for shadow cancellations in a high-interest rate environment for biotech clients.
Short-term performance metrics indicate that the backlog may not be as resilient as historical trends suggest, particularly if client funding constraints lead to project deferrals. The current valuation appears to assume a level of execution certainty that the recent income statement data does not fully support.
Quick answers to the most common questions about buying ICLR stock.
For fiscal year 2025, ICON Public Limited Company (ICLR) reported total revenue of $8.25B. This represents a 14687.3% increase compared to $55.8M in 1998.
ICON Public Limited Company (ICLR) is profitable, generating $229.3M in net income for the fiscal year ending 2025 with a net profit margin of 2.8%.
ICON Public Limited Company (ICLR) reported an operating income of $1.01B, resulting in an operating profit margin of 12.3%. This margin reflects the operational efficiency of the business before interest and taxes.
ICON Public Limited Company (ICLR) generated $2.18B in gross profit for the year, representing a gross profit margin of 26.4%. This demonstrates the company's core pricing power and production efficiency.