Fortrea (FTRE)

NASDAQHealth CareBiotechnologySnapshot 2026-10-23

$23.63-1.21%

Close 2026-10-23 · 1-day change

Investment OutlookAs of Oct 24, 2026

What could strengthen or challenge Fortrea’s outlook?

The long-term thesis, the evidence coming in, and the environment around it. Thesis dated Jul 8, 2026.

Higher potential upsideImproving expectations

Next-FY EPS estimate change · 30 days

-1.2%

+10% or more+5%0%−5%−10% or less

1.06 → 1.05 EPS · FY ending Dec 31, 2027 · 7 analysts

Higher risk of downsideWeakening expectations

One observable signal. This measures changing earnings expectations, not the probability of a gain or loss.

How this is measured

Change in the same fiscal period’s mean EPS estimate from Sep 24, 2026 to Oct 24, 2026: (new ÷ prior − 1). Contributor count changed from 7 to 7; this is not the number of analysts revising. Source: FMP consensus snapshots. The ±10% axis is a display range.

Measure / period	Management expectations	Analyst expectations
FY 2026 · Q4
Revenue	—	676.62M
EPS	—	0.245
FY 2026 · Annual
Revenue	$2.62B–$2.69B	2.66B
EPS	—	0.844
EBITDA	$205M–$220Mnon-GAAP	—
FY 2027 · Annual
Revenue	—	2.75B
EPS	—	1.051

What the Thesis Depends On

4 published thesis conditions, with dated milestones shown separately.

Key Factor	Why It Matters	Current Status	Break Condition	Latest Evidence
Adjusted EBITDA grows to about $205M in FY26	The company guides full-year 2026 adjusted EBITDA around $205M.	Intact	Adjusted EBITDA falls below $190M in 2026-FY	Direct metric needs a verified mapping The published measure or accounting basis is not supported by an exact source binding. Source date unavailableLast status assessment Oct 24, 2026Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 3 of last 3 quarters. Adjusted EBITDA increased from $54.9 million in 2025-Q2 to $58.7 million in 2026-Q2, and for the first half of 2026 reached $105.7 million versus $85.2 million in first half 2025. Management's repeated emphasis on margin expansion aligns with improving adjusted EBITDA, indicating delivering progress on this priority. Delivery assessment Oct 24, 2026
Operating and free cash flow improve from negative in 2026-Q1	A supporting condition in Fortrea's published investment case. The stated target is Operating cash flow and free cash flow improve to positive by end 2026.	Improving	Cash flow remains negative through 2026-FY	Direct metric needs a verified mapping The published measure or accounting basis is not supported by an exact source binding. Source date unavailableLast status assessment Oct 24, 2026Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 3 of last 3 quarters. Operating cash flow improved to $28.9 million in 2026-Q2 from a negative $17.0 million in 2026-Q1, with free cash flow positive at $19.9 million in 2026-Q2. Management's focus on disciplined capital allocation and balance sheet strength is reflected in improving cash flow metrics, showing delivering progress. Delivery assessment Oct 24, 2026
Restructuring charges decline to low levels	Restructuring charges fell from $22.4M in 2025-Q4 to $6.7M in 2026-Q1, showing cost control progress.	Intact	Restructuring charges rise above $10M in 2026-Q1	Direct metric needs a verified mapping The published measure or accounting basis is not supported by an exact source binding. Source date unavailableLast status assessment Oct 24, 2026Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 3 of last 3 quarters. Restructuring charges have declined from $22.4 million in 2025-Q4 to $2.7 million in 2026-Q2, indicating progress in managing workforce and restructuring costs. Management continues to emphasize this priority, and the trajectory shows delivering cost reduction in this area. Delivery assessment Oct 24, 2026
Revenue near $2.6B in FY26	A primary condition in Fortrea's published investment case. The stated target is about $2.6B.	Intact	Revenue falls below $2.55B in 2026-FY	Revenue: $678.2M FY2026-Q2; GAAP. Published target: about $2.6B. Target period is not explicitly aligned with this observation. Source published Jul 29, 2026678,200,000 USD · source valueSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2026-Q2 · Period ending Jun 30, 2026 Source: company_financial_results. Reference: 34c5c072-c6ec-426f-b7b8-e52117772643. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement.

Stored thesis · Jul 8, 2026. Latest Evidence uses source-matched measurements where available, alongside the last thesis-monitor assessment. Source periods and assessment dates are shown separately. A new measurement does not automatically change the published status or verify an older target.

Incoming Evidence

Compare these dated observations with the operating requirements above

Expectations trend

Same fiscal period

FY2027 · fiscal year ending 2027-12-31 · fmp

FY2027 EPS$1.05

$1.02 → $1.05 · observed estimates

FY2027 revenue$2.75B

$2.70B → $2.75B · observed estimates

Exact estimates & source dates

One fiscal period and provider throughout. At least five contributors are required for each plotted metric; missing coverage stays a gap. Axes show the observed range. Counts measure coverage, not revisions.

FY2027 estimate observations · fmp
Snapshot	EPS	Revenue	EPS / revenue analysts
2026-07-24	$1.02	$2,696,446,881	7 / 9
2026-07-25	$1.08	$2,702,568,320	12 / 11
2026-07-26	$1.08	$2,702,568,320	12 / 11
2026-07-27	$1.02	$2,696,446,881	7 / 9
2026-07-28	$1.02	$2,696,446,881	7 / 9
2026-07-29	$1.08	$2,702,568,320	12 / 11
2026-07-30	$1.08	$2,702,568,320	12 / 11
2026-07-31	$1.12	$2,729,910,950	12 / 11
2026-08-01	$1.06	$2,737,942,042	7 / 9
2026-08-02	$1.14	$2,743,720,000	12 / 11
2026-08-03	$1.14	$2,743,720,000	12 / 11
2026-08-04	$1.07	$2,742,712,803	7 / 9
2026-08-05	$1.14	$2,744,174,550	12 / 11
2026-08-06	$1.14	$2,744,174,550	12 / 11
2026-08-07	$1.06	$2,743,162,803	7 / 9
2026-08-08	$1.14	$2,744,174,550	12 / 11
2026-08-09	$1.14	$2,744,174,550	12 / 11
2026-08-10	$1.14	$2,744,174,550	12 / 11
2026-08-12	$1.14	$2,744,174,550	12 / 11
2026-08-13	$1.14	$2,744,174,550	12 / 11
2026-08-14	$1.06	$2,743,162,803	7 / 9
2026-08-15	$1.06	$2,743,162,803	7 / 9
2026-08-16	$1.06	$2,743,162,803	7 / 9
2026-08-17	$1.06	$2,743,162,803	7 / 9
2026-08-18	$1.06	$2,743,162,803	7 / 9
2026-08-19	$1.06	$2,743,162,803	7 / 9
2026-08-20	$1.06	$2,743,162,803	7 / 9
2026-08-21	$1.06	$2,743,162,803	7 / 9
2026-08-22	$1.06	$2,743,162,803	7 / 9
2026-08-23	$1.06	$2,743,162,803	7 / 9
2026-08-24	$1.06	$2,743,162,803	7 / 9
2026-08-25	$1.06	$2,743,162,803	7 / 9
2026-08-26	$1.06	$2,743,162,803	7 / 9
2026-08-27	$1.06	$2,743,162,803	7 / 9
2026-08-28	$1.06	$2,743,162,803	7 / 9
2026-08-29	$1.06	$2,743,162,803	7 / 9
2026-08-30	$1.06	$2,743,162,803	7 / 9
2026-08-31	$1.06	$2,743,162,803	7 / 9
2026-09-01	$1.06	$2,743,162,803	7 / 9
2026-09-02	$1.06	$2,743,162,803	7 / 9
2026-09-03	$1.06	$2,743,162,803	7 / 9
2026-09-04	$1.06	$2,743,172,803	7 / 9
2026-09-05	$1.06	$2,743,172,803	7 / 9
2026-09-06	$1.06	$2,743,172,803	7 / 9
2026-09-07	$1.06	$2,743,172,803	7 / 9
2026-09-08	$1.06	$2,743,172,803	7 / 9
2026-09-09	$1.06	$2,743,172,803	7 / 9
2026-09-10	$1.06	$2,743,172,803	7 / 9
2026-09-11	$1.06	$2,743,172,803	7 / 9
2026-09-12	$1.06	$2,743,172,803	7 / 9
2026-09-13	$1.06	$2,743,172,803	7 / 9
2026-09-14	$1.06	$2,743,172,803	7 / 9
2026-09-15	$1.06	$2,743,172,803	7 / 9
2026-09-16	$1.06	$2,743,172,803	7 / 9
2026-09-17	$1.06	$2,743,172,803	7 / 9
2026-09-18	$1.06	$2,743,172,803	7 / 9
2026-09-19	$1.06	$2,743,172,803	7 / 9
2026-09-20	$1.06	$2,743,172,803	7 / 9
2026-09-21	$1.06	$2,743,172,803	7 / 9
2026-09-22	$1.06	$2,743,172,803	7 / 9
2026-09-23	$1.06	$2,743,172,803	7 / 9
2026-09-24	$1.06	$2,743,172,803	7 / 9
2026-09-25	$1.06	$2,743,172,803	7 / 9
2026-09-26	$1.06	$2,743,172,803	7 / 9
2026-09-27	$1.06	$2,743,172,803	7 / 9
2026-09-28	$1.06	$2,743,172,803	7 / 9
2026-09-29	$1.06	$2,743,172,803	7 / 9
2026-09-30	$1.06	$2,745,845,703	7 / 9
2026-10-01	$1.06	$2,743,482,934	7 / 9
2026-10-02	$1.06	$2,743,482,934	7 / 9
2026-10-03	$1.06	$2,743,482,934	7 / 9
2026-10-04	$1.06	$2,743,482,934	7 / 9
2026-10-05	$1.06	$2,743,482,934	7 / 9
2026-10-06	$1.06	$2,747,582,934	7 / 9
2026-10-07	$1.08	$2,747,582,934	7 / 9
2026-10-08	$1.08	$2,747,582,934	7 / 9
2026-10-09	$1.08	$2,747,582,934	7 / 9
2026-10-10	$1.06	$2,747,582,934	7 / 9
2026-10-11	$1.06	$2,747,582,934	7 / 9
2026-10-12	$1.06	$2,747,582,934	7 / 9
2026-10-13	$1.06	$2,747,592,025	7 / 9
2026-10-14	$1.06	$2,747,592,025	7 / 9
2026-10-15	$1.06	$2,747,592,025	7 / 9
2026-10-16	$1.06	$2,750,809,121	7 / 9
2026-10-17	$1.06	$2,750,809,121	7 / 9
2026-10-18	$1.06	$2,750,809,121	7 / 9
2026-10-19	$1.06	$2,750,809,121	7 / 9
2026-10-20	$1.06	$2,750,809,121	7 / 9
2026-10-21	$1.06	$2,750,809,121	7 / 9
2026-10-22	$1.05	$2,749,815,176	7 / 9
2026-10-23	$1.05	$2,749,815,176	7 / 9
2026-10-24	$1.05	$2,749,815,176	7 / 9

Revenue and EPS estimates track expectations. They are not delivered results or like-for-like proof of a required annual path.

Compare required revenue and earnings

Analyst view

Monthly observations

Buy / Strong BuyHoldSell / Strong Sell

Exact monthly counts

Monthly rating snapshots · fmp. Missing snapshots are not zero.
Date	Buy*	Hold	Sell*
2026-05-01	5	6	2
2026-06-01	5	5	2
2026-07-01	5	5	3
2026-08-01	5	5	3
2026-09-01	5	6	2
2026-10-01	7	6	2

*Buy includes Strong Buy; Sell includes Strong Sell. Monthly counts describe the analyst mix, not the firms behind each recent action.

Latest: 7 Buy / Strong Buy · 6 Hold · 2 Sell / Strong Sell

2 upgrades0 downgrades1 maintains

Recent actions · Sep 25–Oct 24 · 3 recorded

Price-target changes

30 days

○ Previous · ● Latest · common dollar scale

UBSOct 20 · prior Sep 30

$22.00 → $24.00+9.1%

Deutsche BankOct 15 · prior Jul 30

$20.00 → $25.00+25.0%

BarclaysOct 6 · prior Jul 30

$22.00 → $23.00+4.5%

$0$13.75$27.50

3 raises · 0 cuts · 0 unchanged · 0 without a comparable prior

How this is measured

Sep 25, 2026–Oct 24, 2026. Each firm's latest positive target is paired only with its immediately prior positive target from the same provider, at most 180 days earlier. Unmatched observations have one dot; conflicting observations are not compared.

Outlook in Brief

The evidence, the remaining questions, and what comes next

What's improving

No recovery evidence is reported in the available driver assessments.

Still unresolved / key risks

Adjusted EBITDA grows to about $205M in FY26Direct metric needs a verified mapping
Operating and free cash flow improve from negative in 2026-Q1Direct metric needs a verified mapping
Restructuring charges decline to low levelsDirect metric needs a verified mapping
Revenue near $2.6B in FY26Revenue: $678.2M

Next proof point

Oct 29, 2026

Look for updated results and guidance against the published targets, plus direct evidence for unresolved drivers.

Review earnings

Bottom line

4 of 4 published conditions remain under pressure or need verification. The next results need to address those conditions.

The dated weekly assessment and its assumptions are available in Read detailed Outlook.

Historical risk context

Observed price history; separate from operating scenarios

Price sensitivity

1.6%Typical daily move · historical

Downside history

-51.8%Maximum drawdown · trailing year

Read detailed Outlook Company context, assumptions & risks

Fortrea outlook in detail

The weekly editorial context below is a separate assessment from the dated monitor evidence above. Recovery observations do not automatically change the published thesis. Unverified outside influences are hypotheses, not measured driver evidence.

Updated Oct 24, 2026

What kind of bet this is

FTRE is an execution-dependent growth business in a Healthcare sector with a supportive backdrop. Its long-term thesis is intact, and recent results are relatively strong, but the business remains loss-making and overall risk is elevated.

What's priced into Fortrea

Valuation is tagged as stretched, with a sizable premium versus peers and a re-rating as the main driver of the gap. The evidence points to meaningful expectations already being reflected, though confidence in the valuation assessment is medium and no specific market assumptions are provided.

What the fundamentals likely do

Near term, revenue has been stable rather than growing, while backlog and book-to-bill point to continued demand; adjusted EBITDA has improved year over year. Cash flow improved in the latest quarter but remains mixed, and the next report carries elevated miss risk. Recent CFO and accounting officer transitions add context, but the evidence does not establish their business impact.

What Fortrea hinges on

Over the next few quarters, the thesis depends on sustaining revenue, delivering margin progress, and keeping cash flow improving without reversing recently raised guidance. A guidance cut would damage credibility, while weakening jobs data could weigh on cyclical businesses. Continued strong results and higher guidance from major Healthcare peers would support the sector backdrop.