Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Fortrea (NASDAQ: FTRE) and the best and worst performers in the drug development inputs & services industry.
Companies specializing in drug development inputs and services play a crucial role in the pharmaceutical and biotechnology value chain. Essential support for drug discovery, preclinical testing, and manufacturing means stable demand, as pharmaceutical companies often outsource non-core functions with medium to long-term contracts. However, the business model faces high capital requirements, customer concentration, and vulnerability to shifts in biopharma R&D budgets or regulatory frameworks. Looking ahead, the industry will likely enjoy tailwinds such as increasing investment in biologics, cell and gene therapies, and advancements in precision medicine, which drive demand for sophisticated tools and services. There is a growing trend of outsourcing in drug development for nimbleness and cost efficiency, which benefits the industry. On the flip side, potential headwinds include pricing pressures as efforts to contain healthcare costs are always top of mind. An evolving regulatory backdrop could also slow innovation or client activity.
The 8 drug development inputs & services stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.1% while next quarter’s revenue guidance was 0.8% above.
Luckily, drug development inputs & services stocks have performed well with share prices up 12.6% on average since the latest earnings results.
Fortrea (NASDAQ: FTRE)
Spun off from Labcorp in 2023 to focus exclusively on clinical research services, Fortrea (NASDAQ: FTRE) is a contract research organization that helps pharmaceutical, biotech, and medical device companies develop and bring their products to market through clinical trials and support services.
Fortrea reported revenues of $678.2 million, down 4.5% year on year. This print exceeded analysts’ expectations by 4.7%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and full-year revenue guidance beating analysts’ expectations.
"Our second quarter results reflect continued progress against our strategy and disciplined execution across the business," said Anshul Thakral, CEO of Fortrea.
Fortrea delivered the slowest revenue growth in the group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 5.7% since reporting and currently trades at $19.52.
Is now the time to buy Fortrea? Access our full analysis of the earnings results here, it’s free.
Best Q2: Azenta (NASDAQ: AZTA)
Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ: AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.
Azenta reported revenues of $161.2 million, up 12% year on year, outperforming analysts’ expectations by 8%. The business had an incredible quarter with a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 10.8% since reporting. It currently trades at $33.38.
Is now the time to buy Azenta? Access our full analysis of the earnings results here, it’s free.
IQVIA (NYSE: IQV)
Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE: IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.
IQVIA reported revenues of $4.37 billion, up 8.7% year on year, exceeding analysts’ expectations by 1.5%. It was a satisfactory quarter as it also posted full-year revenue guidance slightly topping analysts’ expectations.
Interestingly, the stock is up 15.2% since the results and currently trades at $245.65.
Read our full analysis of IQVIA’s results here.
UFP Technologies (NASDAQ: UFPT)
With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ: UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.
UFP Technologies reported revenues of $174 million, up 15.1% year on year. This number surpassed analysts’ expectations by 9.1%. Overall, it was a stunning quarter as it also logged a beat of analysts’ EPS estimates.
UFP Technologies delivered the biggest analyst estimate beat among its peers. The stock is up 19.9% since reporting and currently trades at $320.64.
Read our full, actionable report on UFP Technologies here, it’s free.
West Pharmaceutical Services (NYSE: WST)
Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE: WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.
West Pharmaceutical Services reported revenues of $872.3 million, up 13.8% year on year. This result beat analysts’ expectations by 3.5%. It was a very strong quarter as it also put up a solid beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.
The stock is down 1.5% since reporting and currently trades at $352.89.
Read our full, actionable report on West Pharmaceutical Services here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
