New York, Feb 13, 2026, 06:02 EST — Premarket
- ICON traded unchanged at $80.08 before the bell, following a steep 39.9% plunge in the previous session.
- The company pushed back its Q4 and full-year 2025 results, now aiming to report on or before April 30, and has also pulled its 2025 guidance, citing an ongoing internal accounting probe.
- BofA and Leerink lowered their ratings and price targets, citing financials in question and mounting pressure across the sector.
ICON plc (ICON Public Limited Company) stock was flat at $80.08 before the bell Friday, steadying after a brutal 40% drop the previous session. The Dublin-based clinical research firm has launched an internal probe into its accounting controls, pulled its full-year 2025 outlook, and postponed reporting its results until late April. CEO Barry Balfe said the group is now rolling out “corrective actions” aimed at shoring up its reporting controls. (ICON plc)
It’s not only the sharp drop in the stock that’s giving investors trouble. A contract research organization—these are the outfits that drugmakers rely on to manage trials and process data—needs consistent reporting practices and strict oversight. Projects can run for years, and billing isn’t always straightforward.
Analysts wasted no time stepping back. Michael Cherny at Leerink Partners took ICON plc down to market perform from outperform, slashing his price target to $105—down from $220. His note was blunt: he “cannot pitch” the shares while the accounting review keeps things murky. Sector-wide, Cherny flagged increased cancellations and shrinking margins as well. (Streetinsider)
ICON revealed its audit committee kicked off an investigation in late October after management flagged concerns. Outside counsel came on board, teaming up with forensic and technical accounting specialists. The main question: revenue recognition—specifically, the timing of when sales get recorded—across fiscal years 2023 to 2025. Early findings? Revenue might have been overstated by under 2% in both 2023 and 2024. The company also signaled it’s likely to disclose at least one “material weakness” in internal controls, a red flag for potential errors in financial statements. Still, so far, ICON hasn’t found any evidence that customers have been affected by the questionable practices. (ICON plc)
According to MarketWatch, the stock just took its biggest single-day tumble in about 25 years—nothing like this since 1999. (MarketWatch)
BofA’s Michael Ryskin knocked ICON down to underperform, slashing his target to $75 from the previous $195. He pointed out the probe “only compounds” issues that were already stacking up. (TipRanks)
Other names in the group slipped, too, ahead of the open. IQVIA dropped roughly 4.7%, while Medpace edged down about 1.7% in the early going, according to the latest indications.
It’s a rough moment for the sector. According to Fierce Biotech, large pharmaceutical companies are tapping the brakes on parts of their clinical research, putting pressure on outsourcing demand. On top of that, Evercore ISI pulled its rating, pointing to unpredictable earnings swings from even minor revenue shifts and saying there isn’t enough fundamental grounding to maintain a recommendation while the stock is under review. (Fierce Biotech)
The company hasn’t put any numbers on the possible hit to profits or cash flow from the investigation, and it’s dropped its 2025 guidance for now while it sorts out its reporting. Shares could stay choppy if the review expands or if there’s a drawn-out wait for results.
The next big test lands April 30, when ICON’s own deadline hits for its long-overdue fourth-quarter and full-year 2025 results. On the list for investors: possible restatements, just how extensive those control problems are, and whether management puts guidance back on the table.
