Clarivate tops EPS estimates in Q3 2026 while missing on revenue

Clarivate posted adjusted diluted EPS of $0.21 for Q3 2026, beating expectations for a sixth straight quarter, while revenue of $481.6 million came in missing expectations.

The revenue drop reflects portfolio changes: Clarivate closed the sale of its Life Sciences and Healthcare segment on October 6, and that business is now classified as discontinued operations. Organic revenue on a continuing-operations basis rose 0.4%.

The reshaped company is now built around two segments, Academia and Government and Intellectual Property, anchored by a recurring subscription base. Transactional revenues fell 57.9% as certain A&G products wound down and customers migrated to subscription formats. CEO Matti Shem Tov pointed to a return to positive ACV growth in Intellectual Property and AI-led commercial traction as reasons for confidence.

GAAP results carried the weight of the divestiture, with a non-cash goodwill impairment tied to LS&H pushing net income to negative $80.8 million. Clarivate used sale proceeds to retire notes and made a $100 million accelerated debt repayment against total debt of $4,176.1 million.

Management guided full-year 2026 adjusted diluted EPS to $0.73 to $0.77 and Q4 recurring organic growth to 2.00% to 2.50%, a step up from the 0.4% reported in Q3. That acceleration is what investors will weigh against the debt load.