Fortrea (NASDAQ:FTRE) Shares Gap Down on Disappointing Earnings

Shares of Fortrea Holdings Inc. (NASDAQ:FTRE) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $10.34, but opened at $9.34. Fortrea shares last traded at $9.8770, with a volume of 251,633 shares changing hands.

The company reported $0.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.16 by ($0.07). The business had revenue of $660.50 million for the quarter, compared to analyst estimates of $665.22 million. Fortrea had a positive return on equity of 5.64% and a negative net margin of 36.77%.

Key Fortrea News

Here are the key news stories impacting Fortrea this week:

• Positive Sentiment: Management said full‑year revenue and adjusted EBITDA were delivered in line with previously stated targets, and full‑year cost savings exceeded prior commitments — a signal that operational discipline is supporting cash flow and margin recovery. Fortrea Reports Fourth Quarter and Full-Year 2025 Results; Issues Full-Year 2026 Guidance
• Neutral Sentiment: Company issued FY‑2026 revenue guidance around $2.6–$2.7B (consensus ~ $2.7B). The range is roughly in line with expectations but the lower bound leaves little room for upside, so guidance is more cautiously received than outright positive. Fortrea Reports Fourth Quarter and Full-Year 2025 Results; Issues Full-Year 2026 Guidance
• Neutral Sentiment: Management commentary and the Q4 earnings call transcript provide detail on drivers and cost programs investors should review to judge sustainability of improvements. Read the call for color on backlog, client demand, and margin timing. Fortrea (FTRE) Q4 2025 Earnings Call Transcript Fortrea Holdings Inc. (FTRE) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Q4 GAAP EPS of $0.09 missed consensus ($0.16) and declined from $0.18 a year ago—an unexpected shortfall that raises near‑term growth and profitability concerns. Fortrea Holdings Inc. (FTRE) Q4 Earnings and Revenues Lag Estimates
• Negative Sentiment: Revenue of $660.5M slightly missed analyst estimates (~$665.2M), signaling demand softness or timing shifts in client programs that could pressure near‑term top‑line recovery. Fortrea (NASDAQ:FTRE) Reports Sales Below Analyst Estimates In Q4 CY2025 Earnings

Analyst Upgrades and Downgrades

A number of research firms have recently commented on FTRE. TD Cowen upped their price objective on shares of Fortrea from $7.00 to $15.00 and gave the company a “hold” rating in a research note on Thursday, January 22nd. Barclays set a $15.00 price objective on Fortrea and gave the stock an “equal weight” rating in a research note on Monday, December 15th. Robert W. Baird set a $19.00 price target on shares of Fortrea in a report on Wednesday, January 14th. Mizuho set a $15.00 price objective on shares of Fortrea in a report on Friday, January 9th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Fortrea in a research note on Thursday, January 22nd. Four analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $16.75.

Institutional Trading of Fortrea

Several institutional investors have recently modified their holdings of the company. Allworth Financial LP increased its position in shares of Fortrea by 6,802.4% in the second quarter. Allworth Financial LP now owns 5,660 shares of the company’s stock worth $28,000 after acquiring an additional 5,578 shares in the last quarter. Nisa Investment Advisors LLC raised its stake in shares of Fortrea by 214.3% during the 3rd quarter. Nisa Investment Advisors LLC now owns 3,341 shares of the company’s stock worth $28,000 after purchasing an additional 2,278 shares in the last quarter. Larson Financial Group LLC lifted its stake in Fortrea by 136.7% in the fourth quarter. Larson Financial Group LLC now owns 1,856 shares of the company’s stock valued at $32,000 after acquiring an additional 1,072 shares during the last quarter. Osaic Holdings Inc. lifted its stake in shares of Fortrea by 74.3% in the 2nd quarter. Osaic Holdings Inc. now owns 6,844 shares of the company’s stock valued at $38,000 after purchasing an additional 2,918 shares during the last quarter. Finally, Tower Research Capital LLC TRC boosted its stake in shares of Fortrea by 137.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 8,713 shares of the company’s stock worth $43,000 after acquiring an additional 5,036 shares in the last quarter.

Fortrea Stock Up 4.4%

The stock has a market cap of $997.92 million, a P/E ratio of -0.96, a PEG ratio of 0.30 and a beta of 1.59. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 1.81. The business has a 50-day simple moving average of $15.28 and a 200-day simple moving average of $12.28.

Fortrea Company Profile

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.