Clarivate Plc (NYSE:CLVT) shares fell nearly 4% in pre-market trading on Wednesday after the company reported second-quarter earnings that exceeded expectations but posted revenue below Wall Street forecasts, despite maintaining an upbeat outlook for the full year.
The global information and analytics provider reported adjusted earnings of $0.19 per share, narrowly ahead of analysts’ consensus estimate of $0.18.
Revenue totalled $587.3 million, missing market expectations of $589.76 million and declining 5.5% from $621.4 million in the same quarter last year.
Divestitures Weigh on Revenue
Clarivate said the year-over-year decline in revenue primarily reflected the impact of business divestitures and asset disposals.
On an organic basis, revenue decreased 1.5%, as modest subscription revenue growth of 0.7% was more than offset by weaker transactional revenue during the quarter.
Company Maintains Positive Full-Year Outlook
Clarivate reaffirmed its financial guidance for fiscal 2026, signalling confidence in its longer-term strategy despite the mixed quarterly performance.
The company continues to expect adjusted earnings per share of between $0.70 and $0.80 for the year. The midpoint of that range, $0.75 per share, is above analysts’ consensus estimate of $0.73.
Clarivate also maintained its full-year revenue forecast of between $2.30 billion and $2.42 billion. The midpoint of $2.36 billion remains comfortably ahead of Wall Street expectations of approximately $2.18 billion.
Chief Executive Officer Matti Shem Tov said: “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.”
He added that the company expanded its recurring organic revenue, continued to advance its artificial intelligence innovation strategy and further strengthened its balance sheet through debt reduction during the quarter.
Cash Flow and Balance Sheet Continue to Improve
Adjusted EBITDA totalled $247.2 million during the second quarter, compared with $261.6 million in the same period last year.
During the first six months of 2026, Clarivate generated free cash flow of $122.9 million.
The company also reduced its total debt by $218.4 million compared with a year earlier, continuing its efforts to improve financial flexibility while supporting future growth initiatives.