Fortrea Holdings Inc. (FTRE) AI Stock Analysis

Fortrea Holdings Inc. is a contract research organization providing biopharmaceutical product and medical device development services globally. The company operates through two segments: Clinical Services and Enabling Services. Clinical Services delivers clinical pharmacology and clinical development, including phase I-IV trial management, technology-enabled trial solutions, and post-approval services. Enabling Services provides patient access and clinical trial technology solutions that optimize randomization and trial drug supply. Fortrea delivers its offerings through full service, functional service provider, and hybrid structures for pharmaceutical, biotechnology, and medical device clients worldwide.

Fortrea's revenue grew at a 5-year CAGR of 1.1% from FY2020 to FY2025. Annual revenue shifted from $3.06B in FY2021 to $2.84B in FY2022, remained at $2.84B in FY2023, fell to $2.70B in FY2024, and reached $2.72B in FY2025. Net income declined from $98.0M in FY2021 to -$25.2M in FY2023, -$328.5M in FY2024, and -$986.2M in FY2025, with net margin reaching -36.2%. Operating margin also compressed from 3.7% in FY2021 to -1.1% in FY2025, though trailing twelve month operating margin stood at 2.6%. For the latest quarter ended June 30, 2026, quarterly revenue fell 4.5% year-over-year, and quarterly earnings fell 57.4%.

As of June 30, 2026, Fortrea held $168.6M in cash and short-term investments alongside total debt of $1.12B, resulting in net debt of $948.9M. The company's current ratio stood at 0.96, while its debt-to-equity ratio reached 2.13 against shareholders' equity of $524.2M. Fortrea generated $113.5M in operating cash flow and $88.3M in free cash flow in FY2025. Capital expenditures totaled $25.2M in FY2025, and share count expanded 5.9% over five years.

At its last close of $22.49 on October 16, 2026, Fortrea traded at a forward P/E of 12.1x, below the median of its US-listed Healthcare peers of 17.3x. Its price-to-sales ratio was 0.8x compared to the peer median of 4.1x, while its EV/EBITDA multiple of 33.1x stood higher than the peer median of 12.0x. Over the past year, Fortrea shares gained 136.2%, outpacing the S&P 500 (SPY) return of 16.8%. Year-to-date, the stock is up 30.4% and sits 46.2% above its 200-day average.

Across 13 analyst ratings, Fortrea has 6 Strong Buy, 1 Buy, 4 Hold, and 2 Sell recommendations. The mean price target of $21.46 implies a 4.6% discount from the last close of $22.49. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $0.85 and revenue of $2.66B. Over the last four quarters, Fortrea beat EPS estimates 2 times. The next earnings date is scheduled for October 29, 2026.

This page is an AI-written research summary of Fortrea Holdings Inc. (FTRE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: FTRE income statement, FTRE balance sheet, FTRE key metrics, FTRE analyst forecast, FTRE chart. See the FTRE stock overview for the latest quote and news.