Fortrea Holdings Inc.

Fortrea Holdings raised its full-year 2026 revenue guidance to a range of $2.62 billion to $2.69 billion and adjusted EBITDA guidance to $205 million to $220 million, while disclosing that newly appointed CFO Jason Madlock cannot currently serve due to a restrictive-covenant proceeding with his former employer. Board member David Smith is serving as interim CFO, and Aaron Russell will chair the Audit Committee. Second-quarter revenue was $678.2 million, a 4.5% decline year-over-year, with adjusted EBITDA of $58.7 million and a net loss of $13.2 million. The company reported $720.4 million in net new business and a book-to-bill of 1.06x, marking its fourth consecutive quarter above 1.0x. Management expects to remain free cash flow positive through the rest of 2026.

Fortrea reported second quarter 2026 revenues of $678.2 million and raised its full-year guidance, reflecting continued commercial and operational momentum. The contract research organization posted a GAAP net loss of $13.2 million, or $0.14 per diluted share, while adjusted EBITDA rose to $58.7 million and adjusted net income reached $22.7 million, or $0.23 per diluted share. The quarter’s book-to-bill ratio was 1.06x, marking the fourth consecutive quarter above 1.0x and bringing the trailing 12-month ratio to 1.12x. For the full year, Fortrea now expects revenue between $2,620 million and $2,690 million and adjusted EBITDA between $205 million and $220 million. Backlog stood at $7,800 million as of June 30, 2026.

The biotech sector is quietly emerging as a new market leader while the AI-driven semiconductor rally shows signs of exhaustion, according to Zacks Investment Research. The Health Care Sector ETF XLV hit record highs this month, and the Biotech ETF XBI is approaching levels not seen since 2021, fueled by a stronger drug development cycle and defensive rotation. Among standout names, Eli Lilly remains the clear leader, while mid-cap players like Exelixis, PTC Therapeutics, Fortrea Holdings, and Illumina are gaining traction. PTC Therapeutics surged roughly 75% since its drug Sephience was approved in July 2025, with first-quarter revenue reaching $273 million, and was upgraded to a Zacks Rank #1 (Strong Buy) on July 8. Fortrea Holdings, a contract research organization, rebounded from around $4 to the mid-teens on backlog growth and cost cuts, and was added to the Zacks Rank #1 list on July 7. Exelixis offers a blend of profitability and growth at roughly 16x forward earnings, while Illumina, the genomics leader, has recovered about 46% year to date after an 80% tumble.