Quick Verdict
Clarivate reported adjusted EPS of $0.21 and continuing-operations revenue of $481.6 million for Q3 2026. The Clarivate Plc Q3 2026 Earnings results beat published estimates, while revenue comparisons were complicated by discontinued operations. Shares fell 6.63% in premarket trading, according to contemporaneous coverage. Improving recurring growth and margins contrasted with a wider GAAP loss.
About Clarivate Plc
Clarivate Plc (NYSE: CLVT), headquartered in London, provides specialized data, analytics, workflow software and expert services supporting research and intellectual-property decisions. Established as an independent company on October 3, 2016, following the sale of Thomson Reuters’ Intellectual Property & Science business, Clarivate traces its business heritage to 1864. Its continuing operations now comprise Academia & Government and Intellectual Property, following the October 6, 2026, disposal of Life Sciences & Healthcare. Customers use its offerings to support scientific discovery, evaluate research, and manage and protect intellectual property.
The latest earnings release reports September-end cash of $257.0 million and debt outstanding of $4.176 billion. A timestamp-matched market capitalization, current P/E ratio, dividend yield and employee count were not established from the reviewed sources; estimating them would introduce unnecessary uncertainty. For this quarter, investors should distinguish continuing-operations performance from figures that still include the divested healthcare business when assessing revenue, earnings and cash generation.
Top Financial Highlights
- Total revenue, including discontinued operations: $567.9 million, down 8.9% year over year.
- Continuing-operations revenue: $481.6 million, down 9.2%; organic revenue increased 0.4%.
- GAAP net loss: $84.7 million, including discontinued operations, compared with a $28.3 million loss a year earlier.
- Diluted EPS: a loss of $0.13 overall; continuing-operations diluted EPS was a loss of $0.04.
- Adjusted earnings: adjusted net income increased 14.0% to $136.0 million; adjusted diluted EPS rose 16.7% to $0.21. Both include discontinued operations.
- Gross-margin indicator: revenue less the separately reported cost of revenues implies approximately 71.1% for continuing operations. This is a calculated measure, excludes separately presented depreciation and amortization, and is not a company-reported gross margin.
- Adjusted EBITDA: continuing-operations adjusted EBITDA was $218.2 million, down 1.8%, while its margin expanded to 45.3% from 41.9%.
- Operating cash flow: $165.6 million for the quarter, down 8.6%, including discontinued operations.
- Free cash flow: $110.2 million, down 4.6%, including discontinued operations.
- Academia & Government revenue: $286.9 million, down 13.7% as reported but up 0.9% organically.
- Intellectual Property revenue: $194.7 million, down 1.6% as reported and 0.4% organically.
- Recurring business indicators: recurring revenue increased 1.3% organically; organic annualized contract value, or ACV, increased 1.8%.
- Cash on hand: $257.0 million at September 30. The subsequent healthcare divestiture generated $488.4 million in net cash proceeds; those proceeds are not part of the September-end balance.
- Q4 2026 guidance: revenue of $490 million–$510 million, adjusted EBITDA of $215 million–$235 million, adjusted EPS of $0.14–$0.18, and free cash flow of $85 million–$105 million.
- Full-year 2026 guidance: continuing-operations revenue of $1.965 billion–$1.985 billion and adjusted EBITDA of $865 million–$885 million. Adjusted EPS guidance of $0.73–$0.77 includes discontinued operations for the first nine months only.
Selected Financial Information
| (In millions, except percentages and per share data), (unaudited) | Three Months Ended | Change | Nine Months Ended | Change | ||||
| September 30, | September 30, | |||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | |
| Revenues, including discontinued operations | $ 567.9 | $ 623.1 | $ (55.2) | -8.90% | $1,740.70 | $1,838.20 | $ (97.5) | -5.30% |
| Revenues, continuing operations | $ 481.6 | $ 530.3 | $ (48.7) | -9.20% | $1,472.40 | $1,546.70 | $ (74.3) | -4.80% |
| Net income (loss) | $ (84.7) | $ (28.3) | $ (56.4) | N/M | $ (393.5) | $ (204.2) | ($189.30) | N/M |
| Adjusted net income(1) | $ 136.0 | $ 119.3 | $ 16.7 | 14.00% | $ 378.4 | $ 338.4 | $ 40.0 | 11.80% |
| Adjusted EBITDA, including discontinued operations(1) | $ 245.3 | $ 252.4 | $ (7.1) | -2.80% | $ 733.7 | $ 747.2 | $ (13.5) | -1.80% |
| Adjusted EBITDA, continuing operations(1) | $ 218.2 | $ 222.2 | $ (4.0) | -1.80% | $ 645.6 | $ 645.7 | $ (0.1) | –% |
| Diluted EPS, continuing operations | $ (0.04) | $ (0.04) | $ 0.00 | –% | $ (0.19) | $ (0.31) | $ 0.12 | -38.70% |
| Diluted EPS, discontinued operations | $ (0.09) | $ 0.00 | $ (0.09) | N/M | $ (0.42) | $ 0.01 | $ (0.43) | N/M |
| Diluted EPS, including discontinued operations | $ (0.13) | $ (0.04) | $ (0.09) | N/M | $ (0.61) | $ (0.30) | $ (0.31) | N/M |
| Adjusted diluted EPS(1) | $ 0.21 | $ 0.18 | $ 0.03 | 16.70% | $ 0.59 | $ 0.49 | $ 0.10 | 20.40% |
The table summarizes Clarivate Plc’s unaudited financial results for the three and nine months ended September 30, 2026, compared with the same periods in 2025. Figures are in millions of U.S. dollars, except percentages and per-share amounts. It distinguishes continuing operations from results that include discontinued operations.
Third-quarter performance
Clarivate reported mixed results: revenue and cash flow declined, while adjusted net income and adjusted earnings per share increased.
- Revenue including discontinued operations decreased 8.9%, from $623.1 million to $567.9 million. Continuing-operations revenue fell 9.2%, from $530.3 million to $481.6 million.
- The net loss widened to $84.7 million from $28.3 million, a deterioration of $56.4 million.
- Adjusted net income increased 14.0% to $136.0 million, while adjusted diluted EPS rose 16.7% to $0.21 from $0.18.
- Adjusted EBITDA declined 2.8% to $245.3 million including discontinued operations, and 1.8% to $218.2 million for continuing operations.
- Diluted EPS including discontinued operations deteriorated from a loss of $0.04 to a loss of $0.13. Continuing-operations diluted EPS remained a loss of $0.04.
- Operating cash flow fell 8.6% to $165.6 million, while free cash flow declined 4.6% to $110.2 million.
Nine-month performance
For the first nine months of 2026, revenue including discontinued operations declined 5.3% to $1.741 billion, while continuing-operations revenue fell 4.8% to $1.472 billion. The net loss widened to $393.5 million from $204.2 million. However, adjusted net income increased 11.8% to $378.4 million, and adjusted diluted EPS rose 20.4% to $0.59.
Continuing-operations adjusted EBITDA was essentially unchanged at $645.6 million. Cash generation weakened: operating cash flow decreased 14.9% to $399.0 million, and free cash flow declined 15.6% to $233.1 million. Overall, the table shows stronger adjusted earnings alongside lower revenue, wider reported losses, and weaker cash flow. “N/M” identifies percentage comparisons that are not meaningful; the superscript footnotes refer to explanations not shown in the image.
Beat or Miss?
Clarivate delivered an adjusted EPS beat, but the reported revenue miss requires an important qualification: continuing-operations revenue excludes Life Sciences & Healthcare, while the published consensus figures may not consistently reflect that change in scope. Different earnings-data providers also reported different EPS estimates.
| Metric | Reported | Difference/Analysis |
| Q3 adjusted diluted EPS | $0.21 | Versus $0.18 consensus in Investing.com coverage: $0.03 above expectations, or 16.7%. Zacks separately cited $0.19 consensus, implying a $0.02 beat. |
| Q3 continuing-operations revenue | $481.6 million | Versus published consensus of $566.77 million: $85.17 million below, approximately 15.0%. Comparable reporting scope was not established. |
| Q3 revenue including discontinued operations | $567.9 million | Provided to clarify reporting scope; no separately verified, like-for-like consensus was established. |
| Q3 GAAP diluted EPS | −$0.13 | Comparable GAAP consensus: N/A. Do not compare directly with adjusted EPS estimates. |
| Q4 revenue guidance | $490 million–$510 million | Midpoint of $500 million is approximately 0.5% below published consensus of $502.4 million. |
| Q4 adjusted EPS guidance | $0.14–$0.18 | Midpoint of $0.16 is $0.02 below published consensus of $0.18; the upper end matches consensus. |
| FY2026 adjusted EPS guidance | $0.73–$0.77 | Midpoint of $0.75 is $0.03 above the $0.72 consensus cited in Investing.com coverage. |
The underlying operating picture was stronger than the headline revenue decline suggests: disposals accounted for most of the continuing-operations sales contraction, while organic revenue edged higher. Nevertheless, transactional revenue declined 12.4% organically, showing that the remaining business still faces pockets of weakness.
What Leadership Is Saying
CEO Matti Shem Tov emphasized portfolio simplification and AI-led product development:
“The growing commercial traction and customer validation from our AI-led innovation within A&G and IP give us confidence in our ability to deliver on our commitments of accelerating sustained organic growth, expanding free cash flow and reducing leverage.”
CFO Michael Easton focused on execution, margins, and cash generation:
“We are seeing the benefits of disciplined execution across the business, with improving growth trends, strong margins and continued free cash flow generation. Our focus remains on translating organic growth into sustainable earnings and free cash flow, while maintaining a disciplined approach to capital allocation.”
Historical Performance
The following comparison uses continuing operations for revenue and operating expenses, and explicitly labels earnings measures that include discontinued operations. All monetary figures are in U.S. dollars.
| Category | Q3 2026 | Q3 2025 | Change (%) |
| Revenue—continuing operations | $481.6 million | $530.3 million | −9.2% |
| Revenue—including discontinued operations | $567.9 million | $623.1 million | −8.9% |
| Net income/(loss)—including discontinued operations | −$84.7 million | −$28.3 million | N/M; loss widened by $56.4 million |
| Total operating expenses—continuing operations | $441.5 million | $484.4 million | −8.9% |
| Operating income—continuing operations | $40.1 million | $45.9 million | −12.6% |
| Adjusted net income—including discontinued operations | $136.0 million | $119.3 million | 14.00% |
| Adjusted EBITDA—continuing operations | $218.2 million | $222.2 million | −1.8% |
| Operating cash flow—including discontinued operations | $165.6 million | $181.1 million | −8.6% |
(Source: Clarivate’s November 3 earnings release. Percentage changes for operating expenses and operating income are calculated from its reported figures; N/M means not meaningful)
The wider GAAP loss largely reflected a $66.1 million noncash impairment associated with Life Sciences & Healthcare. Meanwhile, continuing-operations adjusted EBITDA margin increased by 3.4 percentage points, even as adjusted EBITDA declined in dollars. That combination reflects a smaller revenue base with improved adjusted profitability, rather than broad-based revenue acceleration.
How the Market Reacted?
Clarivate shares fell 6.63% in premarket trading on November 3, according to contemporaneous Yahoo Finance coverage; this was an initial reaction, not a verified closing return or November 4 live quote. Coverage attributed the decline to the published revenue shortfall and weaker sales outlook despite the adjusted EPS beat.
The report’s positive elements were improving recurring revenue indicators, higher adjusted margins, and fresh divestiture proceeds, while the counterweights were the wider GAAP loss, lower quarterly cash generation, and substantial debt.
