Why Medpace Holdings (MEDP) Is Up 6.4% After Strong Q3 Results and Raised 2025 Guidance

• Medpace Holdings recently reported third-quarter 2025 results, showcasing a 23.7% year-over-year revenue increase to US$659.9 million and raising its full-year 2025 revenue guidance to a range of US$2.48 billion to US$2.53 billion.
• The company highlighted a very large 47.9% increase in net new business awards and a 30% year-over-year backlog increase, pointing to broad-based demand and enhanced future growth visibility.
• We will explore how Medpace's surge in new orders and raised full-year guidance shape the company's investment narrative moving forward.

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Medpace Holdings Investment Narrative Recap

Medpace Holdings appeals most to those who believe in sustained demand for outsourced clinical trials, backed by visible backlog growth and robust new business momentum. The company’s strong Q3 results, with a large jump in new orders and an upgraded revenue outlook, bolster near-term confidence, but the biggest catalyst remains the pace at which bookings and backlog convert to revenue. The main risk continues to be sensitivity to funding for smaller biotech clients; these results do not materially change that short-term vulnerability.

Among recent announcements, Medpace’s updated full-year 2025 guidance, projecting US$2.48 billion to US$2.53 billion in revenue and higher earnings, stands out as highly relevant. This guidance reflects management’s optimism around continued demand, yet also underlines how much future performance is still linked to the project mix and broader biopharma investment trends.

However, investors should also be aware that rapid revenue gains may come with less margin benefit if mix shifts back or cancellations rise...

Read the full narrative on Medpace Holdings (it's free!)

Medpace Holdings' outlook points to $3.1 billion in revenue and $526.6 million in earnings by 2028. This assumes an 11.8% annual revenue growth rate and a $108.3 million earnings increase from $418.3 million today.

Uncover how Medpace Holdings' forecasts yield a $456.00 fair value, a 21% downside to its current price.

Exploring Other Perspectives

Fair value estimates by 13 Simply Wall St Community members range widely, from US$288.24 up to US$722.82 per share. While optimism around new order growth is high, the company’s exposure to smaller client funding trends continues to shape opinions about its future performance and potential risks, see how your view fits among these diverse perspectives.

Explore 13 other fair value estimates on Medpace Holdings - why the stock might be worth as much as 25% more than the current price!

Build Your Own Medpace Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Medpace Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Medpace Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Medpace Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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