FTREFortrea Holdings Inc.
Fortrea Holdings Inc. (FTRE) operates as a health care provider and services company, offering a range of clinical and administrative services to managed care organizations and government programs. The next catalyst is Oct 29, 2026 — Q3 2026 Earnings Release, which will test the company’s ability to deliver on cost savings and stabilize its cash flow amid ongoing refinancing concerns.
- Revenue grew 1.0% YoY to $2.73B in 2026, but net income remained negative at -$76.30M.
- Free cash flow (TTM) was -$123.10M, and net margin (TTM) was -2.8%.
- Debt-to-equity ratio stands at 1.87x, reflecting a leveraged capital structure.
The Read
Fortrea's stock sharply dropped over 40% after Q4 2025 earnings missed estimates despite cost savings, then continued falling below bear floors amid refinancing concerns and weak Q1 2026 backlog updates.
The schedule
- Thu29Oct
The earnings release will test the ability to reset guidance and stabilize margins, which is critical after the recent Q2 report that underperformed due to margin compression.
- Thu19Nov
The event will test the impact of analyst rating resets and tax-loss selling on investor sentiment, which could either provide a short-term boost or trigger a sell-off.
- Mon18Jan
This report will test the ability to convert backlog into revenue and cash, a key differentiator from the last similar print that missed on mix and margin commentary.
- Mon19Apr
The earnings release will test the ability to reset guidance and stabilize margins, which is critical after the recent Q2 report that underperformed due to margin compression.
- Mon9Aug
This report will test the ability to convert backlog into revenue and cash, a key differentiator from the last similar print that missed on mix and margin commentary.
Past
- Thu1Oct
Actual outcome: Bull · $20.36 at outcome
Fortrea's stock rallied following the capital structure action as investors reacted positively to the refinancing plan that alleviated debt concerns. The price exceeded the bull target, indicating confidence in the company's ability to manage its financial obligations. The move was driven by the strategic clarity provided by the refinancing plan, which signaled reduced near-term risk and a path toward financial stability.
Fortrea must address its substantial debt maturities, raising the specter of either a dilutive equity raise or a comprehensive debt refinancing.
- Tue25Aug
Actual outcome: Bull · $17.05 at outcome
The stock fell 6.7% from the event date to the outcome date, but closed above the bull target of $16.50 on the outcome date. The decline was due to initial uncertainty around activist intervention, but the stock rebounded as strategic review progress and positive guidance signaled improved operational clarity and long-term value.
Given the persistent debt load and underperformance, speculation regarding activist intervention or a strategic review is expected to intensify around this window.
- Sun9Aug
Actual outcome: Bull · $19.53 at outcome
Fortrea met Q2 EPS estimates exactly, reporting -$0.26 per share. The stock surged past the $17.80 bull target, driven by growing optimism around its earnings prospects and strong momentum that led to a Zacks Rank #1 (Strong Buy) upgrade just prior to the print, as investors rewarded the in-line results and attractive valuation.
Fortrea's Q2 print must demonstrate margin defense and backlog conversion to sustain its recent rally to $15.63.
- Thu14May
Actual outcome: Bear · $13.15 at outcome
Fortrea reported strong first-quarter results, beating earnings expectations and providing positive forward guidance. The company's performance and strategic initiatives, including rebranding efforts and key partnerships, signaled long-term growth potential, driving the stock above the bull target despite a short-term pullback.
Sector-wide CRO pricing updates provide read-throughs for FTRE, with a bullish target of $14.90 or a bearish fallback of $12.50 on continued macro headwinds.
- Mon11May
Actual outcome: Bear · $14.47 at outcome
Price reached or fell below bear floor ($13.80) at outcome date.
- Thu5Mar
Actual outcome: Bear · $10.05 at outcome
Price reached or fell below bear floor ($18.00) at outcome date.
- Mon2Mar
Actual outcome: Bear · $9.92 at outcome
Fortrea reported Q4 2025 earnings that missed analyst estimates, posting earnings of $0.09 per share against a consensus estimate of $0.16 per share, alongside a revenue miss. Although the company delivered full-year cost savings and met its adjusted EBITDA targets, the top- and bottom-line shortfalls drove the stock down 6.1%, pushing it well below the bear floor.
