Medpace’s third quarter saw steady growth, with management attributing performance to robust demand for clinical research services and a healthy pipeline of new business awards. CEO August James Troendle pointed to a record level of net new business awards and a strong win rate, particularly in traditional oncology studies. The company also noted that project cancellations, while at the higher end of normal, did not significantly impact results. CFO Kevin Brady highlighted improved utilization and low employee turnover as supporting factors for the company’s margin expansion this quarter.
Is now the time to buy MEDP? Find out in our full research report (it’s free for active Edge members).
Medpace (MEDP) Q3 2026 highlights:
- Revenue: $716 million vs analyst estimates of $713.7 million (8.5% year-on-year growth, in line)
- EPS (GAAP): $4.84 vs analyst estimates of $4.43 (9.4% beat)
- Adjusted EBITDA: $172.1 million vs analyst estimates of $159.4 million (24% margin, 8% beat)
- The company reconfirmed its revenue guidance for the full year of $2.85 billion at the midpoint
- EPS (GAAP) guidance for the full year is $18.15 at the midpoint, beating analyst estimates by 3.2%
- EBITDA guidance for the full year is $645 million at the midpoint, above analyst estimates of $627.6 million
- Operating Margin: 23.1%, up from 21.5% in the same quarter last year
- Market Capitalization: $18.29 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Medpace’s Q3 earnings call
- Michael Cherny (Lee Partners) asked about the drivers behind strong net bookings and competitive dynamics in biotech. CEO August James Troendle cited a strong win rate and favorable mix in oncology, noting, “our win rate has been strong” and that the environment is currently healthy.
- Jailendra Singh (Truist Securities) sought clarity on guidance and the sustainability of direct fee gross margins. CFO Kevin Brady pointed to some quarter-to-quarter volatility but indicated no significant disruption expected in near-term margins.
- Ann Hynes (Mizuho) questioned the factors behind lower implied growth rates for next year and the impact of project cancellations. Troendle highlighted that cancellations have been higher than preferred but are largely due to product failures, not funding issues.
- Eric Coldwell (Baird) probed margin drivers and staffing trends, specifically turnover and wage pressures. Brady emphasized ongoing low turnover and said wage inflation was within expectations, with no abnormal pressures anticipated for the coming year.
- Luke Sergott (Barclays) asked about large pharma business dynamics and pricing power in RFPs. Troendle explained that growth from large pharma is mostly tied to acquisitions of existing biotech clients, and that pricing has returned to a more normalized, quality-focused environment.
Catalysts in upcoming quarters
In the coming quarters, the StockStory team will be watching (1) whether Medpace can maintain strong new business awards and backlog conversion rates, (2) the impact of the Cincinnati expansion on cost structure and margins, and (3) any shifts in project cancellation rates, particularly as product failures or industry headwinds emerge. Progress on operational efficiency and sustained demand in core therapeutic areas will also be important indicators.
Medpace currently trades at $650.48, down from $664 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free).
High-quality stocks for all market conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
