Truist Securities has reiterated a Hold rating on ICON plc and left its price target unchanged at $222.00 following the clinical research organization’s announcement of an internal investigation into revenue recognition practices. The probe and related developments have coincided with a notable fall in the stock price; shares have slipped 8.43% over the past week and were trading at $133.14, close to their 52-week low of $125.10.
The internal review, which began in late October 2025, is focused on potential revenue overstatements covering fiscal years 2023 through 2025. Early, preliminary findings indicate that revenue for 2023 and 2024 may each have been overstated by less than 2%.
Management has clarified several points about the scope of the investigation. Bookings and backlog are not under review, the company said, even as it acknowledged that some quarters have shown elevated cancellation levels. Those cancella tions have been particularly linked to bookings from prior periods that did not convert into expected business at anticipated rates.
ICON has delayed publication of its fourth-quarter and full-year 2025 financial results as the Audit Committee, aided by external advisors, continues its review. Management intends to provide a fuller update when it reports fourth-quarter results and issues guidance for 2026. That earnings announcement is scheduled for February 25, which the company and investors view as an important near-term milestone.
Market data referenced alongside company disclosures show mixed fundamentals despite the accounting review. The business remains profitable, with a free cash flow yield reported at 9%, and management has been active in repurchasing shares. Technical indicators cited by market research also point to oversold conditions in the stock.
The investigation and the timing of delayed results prompted responses from other sell-side firms. BofA Securities downgraded its rating from Neutral to Underperform and reduced its price target substantially, while Evercore put its rating on the stock into suspension. Those actions, together with the unfolding internal review, have been associated with a marked drop in ICON’s share value. Over the trailing 12 months, the stock has declined 28.62%.
Investor-facing commentary from ICON indicates the company has communicated openly with customers, stressing that the probe concerns targeted accounting practices and not operational delivery. ICON maintains that it continues to prioritize service delivery and ongoing drug development programs.
Analyst expectations remain varied. Despite recent downgrades and rating suspensions, published price targets among analysts range from $175 to $243, implying potential upside from current levels depending on final outcomes and guidance. The company plans to incorporate the results of the investigation and its finalized 2025 financials into guidance for 2026.
Investors will be watching the February 25 earnings release closely for the Audit Committee’s conclusions, any revisions to previously reported results, updated guidance for 2026, and management commentary on cancellations and backlog conversion trends. Until that update is provided, uncertainty around revenue recognition and the timing of the company’s final 2025 numbers will remain a central focus for shareholders and analysts.