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Why Is Medpace (MEDP) Up 1.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for Medpace (MEDP - Free Report) . Shares have added about 1.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Medpace due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Medpace Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
MEDP Q2 Earnings and Revenues Surpass Estimates
Medpace Holdings, Inc.reported second-quarter 2026 earnings of $4.25 per share, up 37.1% year over year. The figure beat the Zacks Consensus Estimate by 4.17%.
Revenues rose 17.2% to $707.33 million and surpassed the consensus mark by 1.12%. On a constant-currency basis, growth was also 17.2%, indicating that foreign exchange had little effect on the reported expansion.
Medpace Posts Record Quarterly Awards
Net new business awards jumped 28.2% to $795.7 million, driving a net book-to-bill ratio of 1.13. Management attributed the record net bookings performance partly to a meaningful decline in cancellations from elevated first-quarter levels.
Backlog as of June 30, 2026 rose 4.9% year over year to $3.01 billion. Medpace expects about $1.96 billion of backlog to convert into revenues over the next 12 months. The quarterly backlog conversion rate increased to 24.1% from 21.2% a year ago.
MEDP Sees Oncology Regain Momentum
Management said oncology accounted for more than half of second-quarter bookings and initial award notifications. This marked a shift from the recent period when cardiometabolic programs were a larger contributor to business growth.
Medpace expects oncology to move back toward a more historically typical share of its portfolio over the next year. Cardiometabolic award notifications have moderated, while oncology opportunities have strengthened. The company also reported meaningfully higher request-for-proposal activity both sequentially and year over year.
Medpace Highlights Cash Position and Buybacks
Cash and cash equivalents totaled $502.7 million at the second quarter-end compared with $652.7 million as of March 31, 2026.
Net days sales outstanding remained favorable at negative 59.6 days.
Cumulative cash flow from operating activities came in at $162 million compared with $274.4 million a year ago.
MEDP repurchased approximately 706,000 shares for $294.7 million during the second quarter. The company had $527 million remaining under its authorized share repurchase program at quarter-end.
MEDP Raises Its 2026 Outlook
Medpace now expects 2026 revenues of $2.805-$2.885 billion, implying growth of 10.9%-14% over 2025 levels. The Zacks Consensus Estimate for revenues stands at $2.84 billion.
EBITDA is projected between $618 million and $642 million, suggesting growth of 10.8%-15.1%.
GAAP net income is forecast at $494-$514 million, while earnings are expected between $17.25 and $17.95 per share. The Zacks Consensus Estimate expects earnings to be $17.51 per share. The guidance assumes a 19%-19.5% tax rate, $21.1 million of interest income and no additional share repurchases after June 30.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 5.61% due to these changes.
VGM Scores
Currently, Medpace has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Medpace has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Medpace belongs to the Zacks Medical Services industry. Another stock from the same industry, Elevance Health (ELV - Free Report) , has gained 4.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Elevance Health reported revenues of $49.83 billion in the last reported quarter, representing a year-over-year change of +0.8%. EPS of $7.45 for the same period compares with $8.84 a year ago.
Elevance Health is expected to post earnings of $4.82 per share for the current quarter, representing a year-over-year change of -20.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.5%.
Elevance Health has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
View the Zacks #1 Rank List
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Why Is Medpace (MEDP) Up 1.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Medpace (MEDP - Free Report) . Shares have added about 1.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Medpace due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Medpace Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
MEDP Q2 Earnings and Revenues Surpass Estimates
Medpace Holdings, Inc.reported second-quarter 2026 earnings of $4.25 per share, up 37.1% year over year. The figure beat the Zacks Consensus Estimate by 4.17%.
Revenues rose 17.2% to $707.33 million and surpassed the consensus mark by 1.12%. On a constant-currency basis, growth was also 17.2%, indicating that foreign exchange had little effect on the reported expansion.
Medpace Posts Record Quarterly Awards
Net new business awards jumped 28.2% to $795.7 million, driving a net book-to-bill ratio of 1.13. Management attributed the record net bookings performance partly to a meaningful decline in cancellations from elevated first-quarter levels.
Backlog as of June 30, 2026 rose 4.9% year over year to $3.01 billion. Medpace expects about $1.96 billion of backlog to convert into revenues over the next 12 months. The quarterly backlog conversion rate increased to 24.1% from 21.2% a year ago.
MEDP Sees Oncology Regain Momentum
Management said oncology accounted for more than half of second-quarter bookings and initial award notifications. This marked a shift from the recent period when cardiometabolic programs were a larger contributor to business growth.
Medpace expects oncology to move back toward a more historically typical share of its portfolio over the next year. Cardiometabolic award notifications have moderated, while oncology opportunities have strengthened. The company also reported meaningfully higher request-for-proposal activity both sequentially and year over year.
Medpace Highlights Cash Position and Buybacks
Cash and cash equivalents totaled $502.7 million at the second quarter-end compared with $652.7 million as of March 31, 2026.
Net days sales outstanding remained favorable at negative 59.6 days.
Cumulative cash flow from operating activities came in at $162 million compared with $274.4 million a year ago.
MEDP repurchased approximately 706,000 shares for $294.7 million during the second quarter. The company had $527 million remaining under its authorized share repurchase program at quarter-end.
MEDP Raises Its 2026 Outlook
Medpace now expects 2026 revenues of $2.805-$2.885 billion, implying growth of 10.9%-14% over 2025 levels. The Zacks Consensus Estimate for revenues stands at $2.84 billion.
EBITDA is projected between $618 million and $642 million, suggesting growth of 10.8%-15.1%.
GAAP net income is forecast at $494-$514 million, while earnings are expected between $17.25 and $17.95 per share. The Zacks Consensus Estimate expects earnings to be $17.51 per share. The guidance assumes a 19%-19.5% tax rate, $21.1 million of interest income and no additional share repurchases after June 30.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 5.61% due to these changes.
VGM Scores
Currently, Medpace has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Medpace has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Medpace belongs to the Zacks Medical Services industry. Another stock from the same industry, Elevance Health (ELV - Free Report) , has gained 4.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Elevance Health reported revenues of $49.83 billion in the last reported quarter, representing a year-over-year change of +0.8%. EPS of $7.45 for the same period compares with $8.84 a year ago.
Elevance Health is expected to post earnings of $4.82 per share for the current quarter, representing a year-over-year change of -20.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.5%.
Elevance Health has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.