Paring back some of the 33% loss that it had suffered through the first three weeks of trading in February, shares of Clarivate (CLVT 3.00%) are soaring this week. In addition to reporting strong fourth quarter 2025 financial results, the company, a provider of research databases and brand management tools, provided auspicious 2026 guidance.
According to data provided by S&P Global Market Intelligence, Clarivate stock is up 29.9% from the end of trading last Friday through 10:55 a.m. ET today.
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Management sees continued free cash flow growth in 2026
Reporting fourth-quarter 2025 revenue of $617 million, Clarivate exceeded analysts' estimates of $604.8 million. The company also blew past analysts' expectations on the bottom line, posting adjusted earnings per share (EPS) of $0.20 -- better than the $0.16 analysts had anticipated.
NYSE: CLVT
Key Data Points
Besides the income statement, investors found reason to celebrate on the cash flow statement. Clarivate reported Q4 2025 free cash flow of $89.2 million, a 50.9% year-over-year increase, even more impressive given the 6.9% year-over-year decline in sales.
For 2026, management projects adjusted diluted EPS of $0.70 to $0.80. Should the company achieve the midpoint of this guidance, it would represent an 8.7% year-over-year increase. Similarly, management is optimistic about free cash flow growth, projecting $365 million to $435 million. Based on the company's reported free cash flow of $365.3 million in 2025, the midpoint of the 2026 guidance represents 9.5% year-over-year growth.
What's a prospective investor to do after the recent rise in Clarivate stock?
Despite Clarivate's shares ripping higher this week, investors interested in the tech stock still have the opportunity to buy it at a discount. Shares are trading at 2.6 times operating cash flow, a discount to their five-year average cash flow multiple of 7.6.
