Medpace: Cancellations Are Normalizing

Medpace Holdings demonstrates strong Q2 2026 net new business awards, with a 1.13x net book-to-bill and $3.0B backlog. Oncology bookings are robust, while cardiometabolic awards have declined; management expects mix normalization over the next year. Guidance is lifted on improved RFP trends, biotech funding breadth, and moderated cancellations, supporting growth momentum into 2027. Valuation remains historically expensive (P/E ~35, P/FCF >24), making the current buying case weaker despite improved business momentum.