Clarivate Plc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.47%.
Did CLVT Beat Earnings? Q2 2026 Results
Clarivate PLC posted a mixed second quarter for fiscal 2026, delivering an adjusted EPS beat for the fifth consecutive quarter while falling just short on the top line. The information services company reported adjusted diluted EPS of $0.19, ahead of the $0.18 consensus estimate by 4.86%, even as revenue of $587.30 million came in 0.42% below expectations and fell 5.5% year-over-year, with the decline tied primarily to inorganic divestitures rather than core business deterioration. A $221.70 million non-cash goodwill impairment charge linked to the pending sale of the Life Sciences and Healthcare segment to Altaris LLC weighed heavily on GAAP results, producing a net loss of $268.60 million, though Adjusted EBITDA held firm at $247.20 million with a 42.1% margin. Management reaffirmed full-year 2026 guidance for adjusted EPS of $0.70 to $0.80 and free cash flow of $365 million to $435 million, while flagging roughly $30 million in one-time transaction costs that point results toward the low end of the cash flow range; organic recurring revenue growth is expected to accelerate by more than 100 basis points in the second half.
- Organic subscription revenue growth of 0.7% driven by new sales and price increases
- Organic ACV growth of 1.5% reflecting continued progress toward subscription-led revenue base
- Adjusted EBITDA margin held flat at 42.1% through disciplined cost management
- Transactional revenue decline of 30.1% driven by product group wind-downs and customer migrations to subscription offerings
- Debt reduction of more than $200 million in H1 2026 through accelerated repayment and discounted open-market repurchases
“The Value Creation Plan continues to drive meaningful progress, as we execute against our strategic priorities and strengthen Clarivate's foundation for organic growth acceleration. During the quarter, we expanded organic recurring revenue, advanced our AI innovation roadmap, maintained disciplined cost management, and strengthened our balance sheet through deleveraging. Together, with the recently announced divestiture of the Life Sciences & Healthcare segment, these actions are creating a more focused company with greater financial flexibility, a higher recurring revenue mix, and a clear path to deliver long-term value to shareholders.”
Clarivate CEO, on the earnings call
Forward Guidance & Outlook
Clarivate reaffirmed its full-year 2026 financial outlook: ACV Organic Growth of 2.0%–3.0% (likely in lower half), Recurring Organic Revenue Growth of 0.75%–2.25% (~1.5% midpoint), Revenues including discontinued operations of $2.30B–$2.42B (~$2.35B midpoint), Adjusted EBITDA of $980M–$1.04B (~$1.005B midpoint) at 42.0%–43.5% margins (~42.75% midpoint), Adjusted Diluted EPS of $0.70–$0.80 (~$0.75 midpoint), and Free Cash Flow of $365M–$435M (~$365M at low end due to ~$30M of one-time LS&H transaction costs). Management expects organic recurring revenue growth to accelerate sequentially by more than 100 basis points in H2 2026 with continued momentum into 2027. The LS&H divestiture is expected to close by year-end 2026, with net proceeds directed to debt paydown.
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