Revenue rose 8.5% against a 16.9% nine-month pace, while EPS rose 25.4% to $4.84 alongside lower pass-through cost growth and a lower tax rate 8-K. Management guides 2026 revenue to $2.835 billion to $2.855 billion 8-K.
Medpace Holdings, Inc. · Q3 2026 · Reported 21 Oct 2026 · US
Key figures
Million USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Revenue | 716.00 | 659.90 | +8.5 % |
Operating income | 165.54 | 141.81 | +16.7 % |
Net income | 137.46 | 111.14 | +23.7 % |
Diluted EPS | 4.84 USD/share | 3.86 USD/share | +25.4 % |
Operating margin | 23.1 % | 21.5 % | +1.6 pp |
Net margin | 19.2 % | 16.8 % | +2.4 pp |
Figures in USD, as reported. Margins are computed from the reported lines.
Revenue growth slowed sharply from the year-to-date pace
Revenue rose 8.5% to $716.0 million in the third quarter, or 8.6% at constant currency, against 16.9% growth for the nine months 8-K. The filing attributes the growth to Metabolic, Oncology and Central Nervous System work 13. The report does not give a reason for the slower quarterly rate.
Profit outgrew revenue as pass-through costs grew slowly and tax fell
Operating income rose 16.7% to $165.5 million, lifting operating margin to 23.1% from 21.5% a year earlier 8-K12. Direct service costs rose 9.9%, but reimbursed out-of-pocket expenses rose only 3.8% (against 25.9% for the nine months), and the filing says these fluctuate with the timing of program initiation and closeout 1213. My reading is that part of the margin gain reflects that timing and may not repeat.
Net margin widened to 19.2% from 16.8% 8-K. Net interest income was $5.3 million against $1.5 million, and the effective tax rate was 19.6% against 22.2%, helped by larger Foreign Derived Deduction Eligible Income benefits 1617. Company-defined EBITDA rose 16.0% to $172.1 million, a 24.0% margin against 22.5% 8-K.
Awards grew faster than revenue, but backlog grew more slowly
Net new business awards rose 10.6% to $873.4 million, and the quarter's backlog conversion rate was 23.8% 8-K. Backlog grew 5.6% to $3,167.2 million, below the revenue growth rate 10. Management expects about $1,980.0 million to $2,000.0 million of it to convert to revenue over the next twelve months 10.
The filing cautions that backlog and awards may not reliably indicate future revenue because of scope changes, cancellations and timing 11.
Cash flow was steady while buybacks paused, and a larger authorization follows
Operating cash flow for the nine months was $530.4 million against net income of $382.7 million, versus $520.6 million and $316.0 million a year earlier, so cash conversion weakened 21. Deferred tax added $28.2 million against $63.4 million, and the receivables build was $45.1 million against $77.1 million 21. The company generated $216.6 million of operating cash in the third quarter alone 8-K.
There were no repurchases in the third quarter, and nine-month buybacks were $294.8 million against $917.4 million a year earlier 8-K. The company holds $705.3 million of cash and no debt 8-K. On October 20 the board replaced the authorization, which had $527.0 million remaining, with a new one of up to $1.0 billion through December 31, 2028 8-K.
What to watch next
Management guides 2026 revenue to $2.835 billion to $2.855 billion, GAAP net income to $514.0 million to $524.0 million, and diluted EPS to $17.97 to $18.32, excluding any repurchases after September 30 8-K.
Whether quarterly revenue growth stays near 8.5% or returns toward the 16.9% nine-month pace, given backlog growth of 5.6% 8-K.
Whether reimbursed out-of-pocket costs grow slower than revenue, as in the quarter but not in the nine months, and whether the full-year tax rate lands within the guided 19.0% to 19.5% 8-K.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.