As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the drug development inputs & services industry, including Fortrea (NASDAQ: FTRE) and its peers.

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 mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.5%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.7% since the latest earnings results.

Slowest Q4: 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 $660.5 million, down 5.2% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a softer quarter for the company with full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.

“We finished 2025 with solid results for the fourth quarter, as the Fortrea team’s shared commitment to commercial, operational and financial excellence becomes embedded in our way of working,” said Anshul Thakral, CEO of Fortrea.

Fortrea delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update of the whole group. Interestingly, the stock is up 2.3% since reporting and currently trades at $10.57.

Read our full report on Fortrea here, it’s free.

Best Q4: Medpace (NASDAQ: MEDP)

Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ: MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.

Medpace reported revenues of $708.5 million, up 32% year on year, outperforming analysts’ expectations by 3.3%. The business had a very strong quarter with a solid beat of analysts’ organic revenue estimates and a solid beat of analysts’ full-year EPS guidance estimates.

Medpace scored the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.7% since reporting. It currently trades at $463.

Is now the time to buy Medpace? Access our full analysis of the earnings results here, it’s free.

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 $148.6 million, flat year on year, exceeding analysts’ expectations by 1.1%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 33.5% since the results and currently trades at $24.54.

Read our full analysis of Azenta’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 $148.9 million, up 3.4% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but revenue in line with analysts’ estimates.

The stock is down 15.6% since reporting and currently trades at $203.01.

Read our full, actionable report on UFP Technologies here, it’s free.

Charles River Laboratories (NYSE: CRL)

Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories (NYSE: CRL) provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies.

Charles River Laboratories reported revenues of $994.2 million, flat year on year. This print topped analysts’ expectations by 1.4%. It was a satisfactory quarter as it also produced a narrow beat of analysts’ revenue estimates.

The stock is up 10.9% since reporting and currently trades at $175.77.

Read our full, actionable report on Charles River Laboratories here, it’s free.

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