Medpace Holdings, Inc. reported second quarter 2026 earnings per share of $4.25, beating the analyst consensus estimate of $3.97 by 7.05%. This represents a 37.1% increase from earnings of $3.10 per share in the same period last year. Revenue rose 17.2% to $707.3 million, surpassing the analyst consensus estimate of $687.6 million. Net income increased 34.4% to $121.4 million, compared to $90.3 million in the prior year. EBITDA grew 17.6% to $153.4 million, resulting in an EBITDA margin of 21.7%.

Financial Results

Revenue growth was driven by strong operational performance, with total direct costs increasing to $505.7 million from $423.3 million. Selling, general and administrative expenses were $48.1 million, compared to $46.7 million in the prior year. Net income margin improved to 17.2% from 15.0% in the second quarter of 2025. Net new business awards totaled $795.7 million, a 28.2% increase from the prior-year period, with a net book-to-bill ratio of 1.13x. Backlog as of June 30, 2026, increased 4.9% to $3,014.2 million.

For the six months ended June 30, 2026, revenue was $1,413.9 million, an increase of 21.7% on a reported basis. Year-to-date net income was $245.2 million, or $8.53 per diluted share, compared to $204.9 million, or $6.79 per diluted share, in the prior year. Year-to-date EBITDA was $302.8 million, a 21.5% increase on a reported basis.

Balance Sheet and Liquidity

Cash and cash equivalents were $502.7 million at June 30, 2026. The company generated $162.0 million in cash flow from operating activities during the quarter. During the second quarter of 2026, Medpace repurchased 705,616 shares for a total of $294.7 million. As of June 30, 2026, the company had $527.0 million remaining under its authorized share repurchase program.

2026 Financial Guidance

Medpace forecasts 2026 revenue in the range of $2.805 billion to $2.885 billion, representing growth of 10.9% to 14.0% over 2025 revenue of $2.530 billion. GAAP net income for full year 2026 is forecasted in the range of $494.0 million to $514.0 million. Full year 2026 EBITDA is expected in the range of $618.0 million to $642.0 million. Diluted earnings per share (GAAP) is forecasted in the range of $17.25 to $17.95.

Mizuho analyst Ann Hynes has maintained an Outperform rating for Medpace Holdings while raising the price target to $586, up from the previous target of $495. The revised target indicates a positive outlook on the stock's future performance despite broader market evaluations.

Rating and Target Changes

The decision to retain the Outperform rating suggests confidence in Medpace Holdings' ability to deliver results relative to its sector peers. The increased price target reflects an updated valuation of the company's worth and growth trajectory.

The adjustment comes as analysts assess Medpace Holdings' position within the industry. The new price target of $586 provides a specific benchmark for investors regarding the firm's expectations for the stock.