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    ICON (ICLR) Valuation Check After an Earnings Beat, Bookings Turnaround and R&D Recovery Hopes

    Simply Wall St·12/14/2025 22:16:07
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    ICON (NasdaqGS:ICLR) is back in focus after beating on revenue and earnings, while bookings growth finally turned a corner, hinting that the toughest stretch of the healthcare R&D downturn may be easing.

    See our latest analysis for ICON.

    The upbeat earnings and improving bookings have helped ICON stage a sharp rebound, with a roughly 15% 30 day share price return. However, the year to date share price return and 1 year total shareholder return are still negative, suggesting momentum is only now starting to rebuild as investors reassess longer term growth and risk.

    If ICON’s recovery story has your attention, this could be a good moment to scout other resilient names in healthcare, starting with healthcare stocks.

    With earnings, bookings and sentiment all moving in the right direction, ICON now trades below its estimated intrinsic value and consensus price targets. After the recent rebound, however, the question is whether this represents a fresh buying opportunity or whether future growth is already priced in.

    Most Popular Narrative Narrative: 9.5% Undervalued

    With ICON closing at $186.58 against a narrative fair value near $206, the current setup highlights an intriguing gap between price and long term potential.

    Operational standardization and streamlining processes are expected to enhance ICON's study cycle times and operational efficiencies, potentially improving net margins and profitability. Strategic investments in AI enabled tools like iSubmit and SmartDraft are set to accelerate trials and enhance data management, which could lead to improved earnings through increased operational efficiency.

    Read the complete narrative.

    Curious how modest top line growth assumptions can still support a richer earnings profile and a higher future multiple than today? Want to see which efficiency gains and buyback plans quietly reshape ICON’s profit story? Dive into the full narrative to explore the specific growth, margin and valuation levers behind that fair value.

    Result: Fair Value of $206.19 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, elevated trial cancellations and persistent macro uncertainty could still derail bookings momentum and delay the earnings and margin inflection implied in this narrative.

    Find out about the key risks to this ICON narrative.

    Build Your Own ICON Narrative

    If you see ICON’s story differently or want to stress test the numbers yourself, build a custom view in minutes with Do it your way.

    A great starting point for your ICON research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

    Looking for more investment ideas?

    Turn this momentum into a smarter portfolio by scanning fresh opportunities now, before the crowd chases the next wave of performance across quality growth and income plays.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.